CONNECTING WITH MUSIC MUSIC CONSUMER INSIGHT REPORT SEPTEMBER 2017
1 MUSIC CONSUMER INSIGHT REPORT 2017
INTRODUCTION AN EXCITING WORLD FOR MUSIC FANS This report provides a snapshot of how fans around BUT CHALLENGES REMAIN the world are connecting with recorded music. The FOR THE MUSIC COMMUNITY nature of this engagement continues to grow and This report also provides a window into the challenges evolve, reflecting the enormously rich and exciting facing today’s global music community. Research on opportunities today’s fans have to listen to music video streaming and the dominance of YouTube is in multiple ways, whenever and wherever they wish instructive for the ongoing debate on the Value Gap. to do so. User upload services, such as YouTube, are heavily used by music consumers and yet do not return fair value Streaming continues to be embraced by music fans to those who are investing in and creating the music. around the world who are increasingly engaged with The Value Gap remains the single biggest threat facing these on-demand licensed digital services. We also the music world today and we are campaigning for a see fans accessing music in multiple formats, with this legislative solution. varying across countries and cultures. Furthermore, the report also highlights the challenge THE NEXT GENERATION of the availability of unlicensed music. Copyright ARE ENGAGING WITH MUSIC infringement is still growing and evolving, with stream Young fans are also showing high levels of engagement ripping the dominant method. The industry is taking with music. Despite having enormous amounts of action against these sites and fighting for the rights of media content competing for their time and attention, those creating music. With the wealth of licensed music “RECORD COMPANIES UNDERSTAND they are taking music to their hearts and recognising available to fans, these types of illegal sites have no its value. As they emerge as the next generation of justifiable place in the music world. THAT AT THE HEART OF THIS music fans this is an encouraging sign. As the recorded music industry grows and adapts, RECORD COMPANIES ARE AT THE HEART OF THIS ENGAGEMENT fans around the world are listening to and engaging ENGAGEMENT IS GREAT MUSIC - with music in many exciting ways. Record companies Record companies and their partners are at the heart of this exciting world of music engagement. They understand that at the heart of this engagement is great SOMETHING THEY CONTINUE TO have invested in and built out the systems that have music - something they continue to believe in, invest in, enabled the licensing of over 40 million tracks and develop and fight to protect. BELIEVE IN, INVEST IN, DEVELOP the existence of hundreds of digital services. Perhaps even more fundamentally, record companies are there FRANCES MOORE, at the very start of music’s journey to fans; discovering, CEO, IFPI AND FIGHT TO PROTECT.” nurturing and promoting artists and their music. FRANCES MOORE, CEO, IFPI
3 MUSIC CONSUMER INSIGHT REPORT 2017
VIDEO STREAMING MAKES UP MORE THAN MUSIC CONSUMPTION HALF OF ON-DEMAND MUSIC STREAMING TIME... IN 2017 22% FREE AUDIO STREAMING ON AVERAGE, 23% PAID AUDIO STREAMING CONSUMERS LISTEN 55% VIDEO STREAMING (INCLUDING USER UPLOAD TO MUSIC IN SERVICES SUCH AS YOUTUBE)
USER UPLOAD SERVICES ARE THE DOMINANT 46% FORM OF VIDEO STREAMING. YOUTUBE ALONE 4 ACCOUNTS FOR 46% OF ALL TIME SPENT 45% YOUTUBE LISTENING TO ON-DEMAND MUSIC. ENGAGE IN LICENSED DIFFERENT HOWEVER, USER UPLOAD SERVICES ARE NOT AUDIO STREAMING RETURNING FAIR VALUE TO THE MUSIC COMMUNITY. (UP FROM 37% IN 2016) LICENSED WAYS
85%85% 40% OF 13-15 YEAR-OLDS OF CONSUMERS ACCESS AREOF STREAMING 13-15 YEAR-OLDS UNLICENSED MUSIC MUSICARE (AUDIO/VIDEO) STREAMING MUSIC (AUDIO/VIDEO)
5 MUSIC CONSUMER INSIGHT REPORT 2017
01 6% OF INTERNET USERS CONSUME ICENSE MUSIC INCLUDES: 6% OF INTERNETAUDIO STREAMING, USERS VIDEO CONSUME STREAMING, ICENSE PHYSICAL PURCHASE, MUSIC DIGITAL DOWNLOADS, AND RADIO INCLUDES: 6% OF INTERNETAUDIO STREAMING, USERS VIDEO CONSUME STREAMING, ICENSE PHYSICAL PURCHASE, MUSIC DIGITAL DOWNLOADS, AND RADIO INCLUDES: AUDIO STREAMING, VIDEO STREAMING, PHYSICAL PURCHASE, DIGITAL DOWNLOADS, AND RADIO 6% OF INTERNET USERS CONSUME ICENSE MUSIC MUSIC 8%INCLUDES: AMONG AUDIO 16 24 STREAMING,s VIDEO STREAMING, PHYSICAL PURCHASE, DIGITAL DOWNLOADS, AND RADIO 8% AMONG 16 24s 8% AMONG 16 24s