U.S. 2018

THE OVERALL MUSIC LANDSCAPE MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 3 01 INTRODUCTION

AS NEW WAYS OF As new ways of listening start This report encapsulates a democratic to fuel an economic recovery measure of audio consumption in LISTENING START TO the U.S. and sees a statistically and for the music industry, demographically representative sample FUEL AN ECONOMIC they are also reshaping the of the 16+ years population answer a set way listeners discover and questions about their listening and music RECOVERY FOR THE consume music and, in turn, consumption habits. MUSIC INDUSTRY, this is impacting the way the This leads to robust profiles, in terms of music industry operates. democratic measure of audio consumption THEY ARE ALSO in the US, and sees a statistically and As a result, all working in music, whether it demographically representative sample RESHAPING THE WAY be management, publishing, broadcasting of the 16+ years population answer a set or retail, must keep their fingers on the questions about their listening and music LISTENERS DISCOVER pulse of the constant changes in consumer consumption habits. audio consumption, understand how AND CONSUME MUSIC. these changes may impact the industry ROBERT DELMONTE MUSIC & ENTERTAINMENT LEAD as a whole, and utilize this knowledge to AUDIOMONITOR continue to adapt. UNCOVERS THE DATA BEHIND THESE TRENDS MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 5

SAMPLE

A statistically and demographically representative 3,000 PARTICIPANTS sample of the 16+ years U.S. population.

To guarantee national representation, quotas were set for: Gender, Age and Geographic Region, in accordance with the 2010 U.S. census. All N ION participants had online access. Fieldwork was completed in July 2018. The demographic profile of those surveyed was as follows: 16-24 NORTHEAST 25-34 MIDWEST 35-44 SOUTH 45-54

Male Female 55-64 WEST 65+

INCOM POSSION

20k Employed full time $20,000-$29,999 Employed part time $30,000-$39,999 Unemployed and $40,000-$49,999 looking for work $50,000-$59,999 Unemployed and not looking for work $60,000-$69,999 Retired $70,000-$79,999 $80,000-$99,999 Student $100,000-$149,999 Rather not say $150,000 and over Would rather not say MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 7

02 MEDIA CONSUMPTION MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 9

PREFERRED MEDIA SOURCE BY AGE

Listen to Music Watch Episodes/Films on Online Video Streaming Platforms PREFERRED View Social Media Content Watch Terrestrial TV Play Video Games Play Sports/Exercise MEDIA FORMS Total

Overall, listening to music and Despite being a relatively popular media source among watching episodes/movies the total population, watching terrestrial television, a more traditional format, accounted for just a 1% share of on online video streaming 16-19 16-24 year old preference. This then rose proportionately platforms were the most as participants got older peaking at 37% for those aged 65 preferred activities across the and over. total sample, both with 20% By contrast, playing video games was the most popular 20-24 shares, with viewing social entertainment format among younger participants, taking media content following the majority share among 16-19 and 16-24 year olds (25% and 21% respectively). Preference for video games then closely with 19% and terrestrial decreased proportionately as participants got older. television in fourth place 25-34 Apart from a peak among the 16-19 and 45-54 year olds at 17%. (25% on each), preference for listening to music was relatively consistent across the age groups. Viewing social media content was also similar across the age groups, aside from a slight dip among 55-64 and 65+ year olds 35-44 (16% on each).

45-54

55-64

Question: Of the activities you 65+ stated you do, which do you like to do the most? Base: 2,849 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 11

AMERICANS LISTEN FOR 2 HOURS+ A DAY

Overall, at 215 minutes on AVERAGE TIMES SPENT ON EACH SOURCE average, participants spent Watching Terrestrial TV more time watching terrestrial Listening to Music MINS Total TV than any other activity, 215 Watch Episodes/Films on WATCHING TERRESTRIAL TV and time spent watching Online Video Streaming Platforms Playing Video Games rose proportionately as Viewing Social Media Content participants got older, 16-24 peaking among those aged 65+ (242 minutes). MINS 151 LISTENING TO MUSIC Younger participants spent longer listening to music than any other 25-34 activity. Time listening to music peaked among the youngest age group (16-24) at 175 minutes, the only instance where terrestrial television is topped by another MINS 35-44 entertainment source. Time spent listening 148 decreased through the older age groups, WATCHING EPISODES/FILMS ONLINE until reaching a low of 109 minutes spent listening per day among those aged 65+. 45-54 In addition, apart from terrestrial television, 16-24 year olds spent longer consuming each media source than any MINS other age group. More modern, digital 123 PLAYING VIDEO GAMES 55-64 forms of consumption: watching episodes/ films on video platforms (Netflix etc.), playing video games and viewing social media content, recorded the highest usage among the youngest age group. Time spent 65+ consuming these formats then decreased MINS as participants got older. 110 VIEWING SOCIAL MEDIA CONTENT Base: 2,849 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 13

SHARE OF A DISCONNECT IN LISTENING FORMAT PREFERENCE

Those who listen to music MUSIC: SHARE OF LISTENING [ALL THOSE A growing disconnect in format preference is growing proportionately as respondents got older, WHO LISTEN TO MUSIC ON A ‘TYPICAL’ DAY] in a ‘typical day’ were asked apparent between age demographics, indicative until peaking among 55+ year olds (45%). Satellite AM/FM Radio On Demand Streaming of changing consumption habits, as younger Radio and CDs showed similar patterns, dipping how their music listening Digital Downloads/Files generations shun traditional methods of among younger age groups before growing as time is split across different Other Internet Radio (Pandora etc.) CDs Satellite Radio listening, opting instead to use digital methods of respondents got older and peaking among those formats. The result is ’share AM/FM Radio Stations Streamed Online Vinyl consumption. aged 65+. of listening’: the percentage, 2018 2017 2016 Despite being the most popular format overall, Younger generations instead dedicated the or share, of total listening time spent listening to AM/FM Radio was very low majority of their listening to on-demand time for each format – e.g. among the youngest demographic. AM/FM Radio streaming. Streaming accounted for well over accounted for just 12% of 16-24 year olds’ listening, half of 16-19 year old music consumption – a Broadcast Radio captured approximately just a third of the national average jump of 13% from last year's share of 47%. This is 31% of participants’ total (31%). Radio usage is instead driven by older a significant over-index compared to the national listening time. demographics, with the format’s listening share average (27%).

Despite a 3% drop YOY, AM/FM Radio SHARE OF LISTENING BY AGE captured almost a third (31%) of total AM/FM Radio On Demand Streaming Other Internet Radio Digital Downloads/Files listening time, consolidating its position Satellite Radio AM/FM Radio Stations Streaming CDs Vinyl as the most popular listening source in the U.S. Total On demand streaming accounted for almost three times as much listening time 16-19 as Digital Downloads, and over five times as much as CDs. After AM/FM Radio, On 20-24 demand streaming was the second most listened to source, accounting for over a 25-34 quarter (27%) of daily listening. 35-44 Internet Radio sources (Pandora etc.) accounted for 12% of listening time, up 2% 45-54 Question: To the YOY, while Satellite Radio accounted for 7%, nearest 15 minutes, how is your and AM/FM Radio stations streamed online music listening 55-64 time normally accounted for 5%. split between the following sources? Base: 2,349 65+ MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 15

THOSE WHO LISTEN TO ‘ON-DEMAND’ STREAMING

YouTube Spotify Apple Music Amazon Prime Music Google Play Music ON DEMAND Amazon Music Unlimited Other NET Total 16-24 25-34 35-44 45-54 55-64 65+ STREAMING:

PLATFORM SHARES YouTube and Spotify take the majority shares of on demand listening, with 38% and 28% respectively. Apple Music and Amazon Prime Music services followed by quite some way, recording similar shares, 9% and 10% respectively (combining Amazon Prime and Amazon Music Unlimited).

What Spotify lacks in reach, it makes up in time spent listening. Despite YouTube’s weekly reach doubling that of Spotify’s (see slide: 18), the gap between the two platforms’ share of listening was somewhat less dramatic (just 10%). This indicates that while YouTube reaches more people over a weekly period, Spotify users spend a lot more time listening to Spotify, than YouTube users do to YouTube. As a result, it can be determined those who listen to Spotify are much more engaged with Spotify, than YouTube users are with YouTube. The gap between YouTube and Spotify closes among younger listeners. Around a third (35%) of 16-24 year olds’ On demand streaming time was dedicated to Spotify, almost closing the gap to streaming leader YouTube (37%). Looking at the older age groups, uptake of Amazon Prime was highest among the older age groups, peaking at 24% among those aged 65 and older. Question: How is your time spent listening to ‘on- demand music streaming’ normally split between the following sources? Other NET: ‘Other’, SoundCloud, Deezer, Napster, Tidal Base: 1,099 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 17

03 MUSIC CONSUMPTION MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 19

WEEKLY REACH BY AGE

Broadcast Radio Online Streaming NET WEEKLY REACH On Demand Streaming NET Total Internet Radio NET Digital Download NET CD + Vinyl

16-19 Broadcast radio is still brackets (57% and 59% respectively). Comparing this to reaching younger age groups, Broadcast radio’s low share of listening (share of time spent listening, page 13) among the same segments, a despite low share of listening. disconnect is apparent among these younger age groups. In terms of reach (listened to for at least 20-24 Online streaming reach peaks among younger age groups five minutes in the last seven days), and falls with age. Almost all 16-19 and 20-24 year olds Broadcast radio is relatively constant (93% and 95%) listened to an online streaming source over across the age groups and, importantly, a weekly period. This fell proportionately as people got includes the 16-19 and 20-24 age older, to 31% among those age 65+. 25-34 35-44 WHILE RADIO SUCCEEDS IN REACHING YOUNGER PARTICIPANTS, IT IS STRUGGLING 45-54 TO ENGAGE THEM, REFLECTIVE IN THE MINIMAL TIME THEY SPEND Question: Which, if any, of the following 55-64 have you used LISTENING TO THE FORMAT, in order to listen to audio content (music or speech) for five minutes or WHICH IS INSTEAD DEDICATED TO more at any one time during the last seven days? Online Streaming ONLINE FORMATS, PARTICULARLY (Overall) = On 65+ demand streaming + Internet radio ON-DEMAND STREAMING. (NET) Base: 3,000 participants MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 21

WEEKLY PLATFORM REACH

YouTube has the highest penetration in terms of weekly PLATFORM REACH PLATFORM REACH BY AGE reach. With over a third (36%) of participants stating they Total 16-19 20-24 25-34 35-44 45-44 55-64 65+ listen to music on YouTube for five minutes or more at least once a week, the video streaming platform was the leading source of music access by some margin; 15% more reach than its biggest competitor, Pandora (21%). CD reach falls for the third year running.

A 6% decrease in weekly reach of CDs since 2017 from 19% to 13%, sees Spotify (17%) widen its gap on the physical format by 4%. Despite the small difference, this is another reminder in consumers' increased adoption of online listening sources over traditional formats. Younger generations are driving the overall reach YouTube Pandora Spotify iTunes numbers of popular On demand streaming platforms: YouTube and Spotify. YouTube is the dominant source of millennial music access. 72% of 16-24 year olds and 65% of 20-24 year olds used the platform to listen to music for at least five minutes over a weekly period; both significant over-indexes. Spotify reach almost tripled among 16-24 year olds. Spotify skewed significantly young, reaching 47% of 16-19 CD HeartRadio Facebook Amazon Prime Music year olds and 49% of 20-24 year olds over a weekly period, almost three times that of the national average (17%). Question: Which, if C any, of the following Apple Music showed a similar pattern, tripling its reach have you used among 16-19 year olds at 12%. in order to listen to audio content (music or speech) for five minutes or Both Pandora and Amazon Prime Music peaked among more at any one time during the last 25-34 year olds. Pandora grew through the the younger seven days? age groups, peaking at 37% among those aged 25-34, Base: 3,000 before dropping proportionately as participants got older. Music as Digital Files Podcast(s) Google Play Music Apple Music Amazon Prime Music reach remained relatively stable until peaking at 15% for those aged 25-34 and then dropping off as participants get older. MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 23

04 DEVICE USAGE MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 25

SHARE OF LISTENING SHARE OF LISTENING BY DEVICE

Cellphone/ FM/AM radio Desktop Laptop smartphone receiver computer or 25 12 7 netbook BY DEVICE 6

Radio devices took the time spent listening to the Cellphone/Smartphone is by far majority share of total time the singular most listened to device, now approximately double the share of laptops and desktop computers spent listening at 36% when combined (13%). netting all tested radio Aside from desktop computers (7%), laptop or netbooks receivers (FM/AM, in-car FM/ (6%) and in-car phone audio connections (6%), no AM, Satellite Receiver, in-car other device accounted for more than 5% of total time Satellite Receiver). spent listening.

On an individual level, the Cellphone/ Note on methodology: Share of listening by device can Smartphone was the most listened to be defined as: the portion, or share, of participants’ device. At 25% – up 6% from 19% last year - total listening time across each device tested. In-car phone In-car iPod Wireless audio connection CD speakers player 3 6 3 3

In-car FM/AM radio receiver 36% 18 PS3 ALL RADIO RECEIVERS [NET] In-car satellite Television Satellite or radio receiver radio 2 receiver PS4 4 2 1

Tablet (iPad etc.) 2 X2 TIMES THE SHARE OF Other +6% CD player Question: To the LISTENING OF LAPTOPS AND 1 nearest 15 minutes, FROM 3 Voice how has your music 25% 2017 activated box (360 listening normally CELLPHONE/SMARTPHONE COMPUTERS COMBINED smart speaker split between the or One) following devices? 2 1 Base: 2,349 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 27

SMARTPHONES DOMINATED

SHARE OF LISTENING: TOP DEVICES BY AGE YOUNGER LISTENING FM/AM radio receiver Cellphone / Smartphone Desktop computer Laptop or netbook In-car phone audio connection (wired aux cable / wireless) Satellite Radio Receiver NET CD player NET Wireless speakers (Bluetooth, Wi-Fi, Airport enabled speaker) iPod Other NET Radio receivers and CD Smartphones, instead, dominated younger listening, players go relatively unused taking the majority share among all aged 34 and below. After peaking among the youngest age group (16-19 year by younger generations. As a Total olds at 45%), smartphone listening fell gradually with age further reflection on younger to 27% among 25-44 year olds, before dropping sharply generations’ disengagement among the older age groups: 45-54 (16%), 55-64 (10%) and with traditional formats, finally to just 4% among those aged 65+. 16-19 listenership to radio and CD Laptop/netbook listening also skewed slightly younger, players was very low among whereas satellite radio skewed older. Laptops/Netbooks accounted for 12% of 16-19 listening, double the 6% 20-24 16-19 year olds and grew in national average. Conversely, satellite radio accounted linear fashion as participants for 11% of 65+ listening, a significant overindex on the got older, peaking among 6% average. those age 65+ at 45%. 25-34

35-44

45-54 Question: To the nearest 15 minutes, how is your music split between the following devices? *Other NET 55-64 includes: ‘Other’, Tablet, Television, Vinyl Player, PlayStation, Voice activated Smart Speaker, Xbox and Smartwatch 65+ Base: 2,349 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 29

SMARTPHONES LEAD OWNERSHIP

87% of participants said that Television held also held strong. Equaling Laptops/Netbooks DEVICE OWNERSHIP at 71%. It is, however, holding on to an older audience, with they owned a smartphone, the Total 16-34 Year Olds only 60% of 16-34 year-olds owning one; a significant under- highest ownership level of all Cellphone / Smartphone index in comparison to the national average (71%). Laptop/ tested devices. netbook ownership was slightly higher among this younger Television age demographic: 75% vs. 71%. Laptop or netbook Standalone FM/AM Radio receivers and CD players are Tablet (iPad etc.) becoming an ownership concern. At 53%, fewer participants FM/AM radio receiver owned a FM/AM Radio Receiver than a tablet (63%). This Desktop computer ownership lagged further among 16-34 year olds, with just 41% owning a traditional standalone AM/FM receiver. The CD In-car CD player player showed a similar pattern – just 25% of 16-34 year olds CD Player owned one, under half that of the national average (41%). Smart TV / Internet Connected TV Wireless speakers In-car phone audio connection Media Player iPod Playstation box In-car Satellite Radio Receiver Voice Activated Smart Speaker Vinyl Player Smartwatch Satellite Radio Receiver Virtual Reality (VR) Headset Other portable mp3 or media player Question: Which, if Other any, of the following devices do you own? None of the above Base: 3,000 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 31

REGULARITY OF

I use several times a day I use everyday I use 2-3 times a week DEVICE USAGE I use once a week I use less often Rarely Never

The Smartphone was the most regularly listened to I use several times a day I use everyday I use 2-3 times a week I use once a week I use less often Rarely Never device, with 56% saying they use it daily to listen to music. Cellphone / Smartphone Critically, of that 56%, 39% FM/AM radio receiver listened ’several times a In-car Satellite Radio Receiver day,’ a long way in front of its Voice Activated Smart Speaker competitors (in terms of daily Smartwatch listening): Smartwatch (23%) and FM/AM Radio, Desktop Television

Computers and Laptops In-car phone audio connection (all 20%). Desktop computer

Laptop or netbook

Media Player

Wireless speakers (Bluetooth /

Tablet (iPad etc.)

iPod

Playstation (PS3 or PS4)

box (360 or One)

In-car CD player

CD Player Question: Omnis Approximately, Virtual Reality (VR) Headset how often do you use each of the following to listen Vinyl Player to music? Base: Owners of each device MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 33

05 SMART SPEAKERS MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 35

MODEL OF SMART SMART SPEAKER SPEAKER OWNED USE CASES

Amazon Echo and Amazon MODEL OF SMART SPEAKER OWNED Smart speaker owners were activity (62%), followed by checking the news (31%) and Echo Dot devices were, by far, asked what they typically use listening to the radio (26%). the most popular. 42% owned their smart speaker for. After controlling home automation/smart devices (19%), no more than 13% of participants chose any of the remaining an Amazon Echo Dot and 40% Amazon Echo Dot Listening to music was the most popular options. 10% of participants report using their smart owned an Amazon Echo. use of smart speakers, at 73%. Checking speaker to listen to podcasts. the weather was the second most popular Google was the second most popular brand, although significantly behind Amazon devices. Just 12% owned either a Google Home or a Google Home Mini. Amazon Echo SMART SPEAKERS USE CASES Only 2% owned the flagship Apple HomePod device.

Google Home Listening to Music Checking the weather forecast Checking facts

Google Home Mini

Amazon Echo 2 Checking the news Listening to the radio Control of home automation/smart devices (e.g lighting, thermostat etc.)

Amazon Echo Show Amazon Echo Spot

Asking for food recipes Scheduling/Managing your calendar Checking travel information Sonos One (commute, journey times etc.)

Apple HomePod

Google Home Max Question: You stated you own a Question: What do Other Smart Speaker, you typically use which model(s) your Smart Speaker do you have? for? Base: 408 Base: 408 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 37

IMPACT OF SMART SPEAKERS

73% of smart speaker owners IMPACT OF SMART SPEAKERS ON ACTIVITIES said that smart speakers had To a great changed the way they listened extent To some to music, at least to some extent Very little extent. 65% said the same for None at all listening to radio, and 62% for I didn’t do listening to podcasts. this anyway

However, a much lower proportion of owners (39%) stated said it had changed the way they discover new music to some extent, indicative of how impactful the lack of a visual interface can have on music discovery.

Question: Compared to before you bought/ received it, to what Check the weather Scheduling/ Check the latest Listen to music Check travel Listen to the radio Listen to podcasts Discover new extent has your forecast Managing your news information music Smart Speaker(s) changed the way calendar you... Base: 408 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 39

EFFECT ON MUSIC LISTENING

Half of smart speaker owners agreed they 43% also agreed that owning a smart IMPACT OF SMART SPEAKERS: MUSIC CONSUMPTION listened to more music and spent longer speaker increased the amount of music playlists they listen to, while around 40% listening than they did before getting Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree discovered more music and listened to their device (50% and 49% respectively). a broader range of music than they did

before (40% and 38% respectively). Listen to more music than I did before

Spend longer listening to music than I did before

50% Listen to more music playlsts than I did before LISTEN TO MORE MUSIC SINCE THEY GOT THEIR SMART SPEAKER

Discover more music than I did before 49% SPEND LONGER LISTENING Listen to a broader range of music than I did before TO MUSIC SINCE THEY GOT THEIR SMART SPEAKER

Let streaming platforms (e.g Spotify) choose music for me more than I did before Question: Thinking about using your smart speaker, to what extent would you agree or disagree with the following statements.. Base: 408 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 41

EFFECT ON DRIVING MUSIC FORMAT LISTENING SUBSCRIPTIONS

Smart speaker owners were Smart speakers had the most positive impact on on- Smart speaker ownership led This peaked among those aged 35-44, where almost a third asked, since they got their demand streaming (Spotify, Amazon Music etc.) with 43% over a fifth (37%) into paying (32%) started paying for a music subscription service listening to the format more than they did before. after buying/receiving a smart speaker. Males were also device, whether they listen for a subscription to a music more likely to pay for a music subscription service post- Conversely, voice-enabled devices had the most negative to certain music formats streaming service. purchase than females (26% vs. 26% respectively). impact on physical formats, with 27% listening to CDs or more or less. Vinyl less since they got their speaker. The second most negatively impacted format was Live Radio (15%), then Digital Downloads/Files (12%).

SMART SPEAKER EFFECT ON FORMAT LISTENING % THAT PURCHASED A MUSIC SUBSCRIPTION AFTER GETTING THEIR SMART SPEAKER

Listen to much more Listen to more No change Listen to less Yes No I already had a paid subscription to a music service Don’t know, Not sure Listen to much less I didn’t listen to this format anyway

Total On- demand music streaming Male

YouTube Female

Live Radio 16-24 (FM/AM, DAB etc)

25-34

Podcasts 35-44

Digital Downloads/Files 45-54 Question: Since you Question: Since bought/received you bought/ your smart speaker, received your smart would you say you 55-64 speaker, have you Physical music listen to more or started paying for less of the following a subscription to a (CDs, Vinyl, etc) music formats... music service? Base: 408 Base: 408 65+ MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 43

STREAMING SERVICE LIKELIHOOD TO BUY SUBSCRIBED TO A SMART SPEAKER

Those who stated they Those without a smart speaker Over a fifth (23%) stated they were likely buy a smart purchased a music streaming were asked how likely they speaker. Of these, 8% were very likely and 15% were fairly likely. Likelihood to buy a smart speaker grew with subscription after they would be to purchase one age until peaking at 36% among those aged 25 – 34. bought/received their smart in the next 6 months. Propensity to purchase then fell sharply through the older speaker, were asked what demographics, to just 7% for those aged 65 and over. platform they chose to LIKELIHOOD TO PURCHASE subscribe to. Very Likely Fairly Likely Neither Likely or Unlikely Fairly Unlikely Very Unlikely Reflective of the most popular smart speakers purchased (Amazon Echo and Total Amazon Echo Dot), Amazon Music was the most popular music service subscribed to Male at two thirds (65%).

Spotify was the second most popular at Female 36%, Google & Apple Music trailed behind with 21% and 17% respectively. 16-19

20-24

25-34

35-44

45-54

Other 55-64 Question: How likely would you say Question: And you are to purchase which music a Smart Speaker service did you over the next 6 subscribe to? 65+ months? Base: 85 Base: 2592 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 45

06 MUSIC STREAMING MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 47

PAID/PREMIUM MUSIC SUBSCRIPTIONS

19% of U.S. participants PAID MUSIC STREAMING SUBSCRIPTIONS BY AGE initially stated that they have a premium subscription Yes Yes, but paid for by someone else No Don’t know, Not sure to a streaming service.

However, upon filtering, 19% actually paid Total for a service, while a further 6% used a service paid for by someone else (e.g. access via a family plan that someone Male else pays for or accessing premium tiers through someone else’s account). Female Paid subscriptions were prevalent among those aged 16-34 and skewed male. Over a third (34%) of 20-24 year olds had a paid 16-19 subscription to a streaming service, over- indexing significantly in comparison to the general population (at 19%). They were also 20-24 popular among 25-34 year olds (28%) and 16-19 year olds (26%). Paid subscribers also tended to be male, with 22% of men stating 25-34 they paid for a premium subscription, compared to 15% of women. 35-44 A fifth of 16-19 year olds had access to a premium account paid for by someone else (either through a family account, or 45-54 someone else's paid account), a significant over index compared to that of the total population. As On-demand streaming is 55-64 the most popular music listening source Question: Do you among 16-19 year olds (see page 15), this pay for a premium subscription to a may indicate that they use accounts 65+ music streaming service? paid for by others due to their lack of Base: 3,000 purchasing power. MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 49

PAID STREAMERS UNPAID STREAMERS

Those who stated they paid for a premium tier of then subscribing to receive additional benefits While the free trial served as a key driver among Expense and YouTube are also major deterrents a music streaming service were asked what had (removing adverts, offline music access etc.). paid subscribers, free tiers are enough for some, among the younger age group. 37% of participants convinced them to subscribe. Participants were These options were also particularly important especially among younger participants. This, stated they had not subscribed to a music able to choose multiple options. among 16-34 year olds. again, highlights a conversion issue, questioning streaming subscription service because it was ‘too whether the freemium model is sufficient enough expensive/they can’t afford it,’ and this rose to 44% The ‘free trial’ was the most effective conversion Exclusives have little conversion weight. Only 13% in funneling free users into paying subscribers; among 16-34 year olds. Almost a quarter (22%) of method. The leading option which converted users of participants decided to pay to listen to a song/ almost 4 in 10 (38%) of those without a paid 16-34 year olds prefer listening to YouTube to paying to paid subscriptions was liking a free trial and album released exclusively through the platform. subscription were happy using the free version with for a music streaming subscription, thus rendering deciding to pay for a fully paid tier (36%). The Advertisements also elicited a low conversion rate adverts. This figure also rose among those aged the service a prominent deterrent in converting following 3 most popular options (ranging between at just 8%. 16-34 to 49%, despite streaming being their main younger listeners to paid subscribers, particularly 24%-29%) also mentioned using free trials and listening source (see page 13). if the option of free tiers was to be removed.

THOSE WHO PAY FOR A MUSIC STREAMING SUBSCRIPTION THOSE WITHOUT A PREMIUM SUBSCRIPTION TO A STREAMING SERVICE

Total 16-34 year olds Total 16-34 year olds

I used the full version of the service on a free trial I’m happy using the free version with adverts period, liked it and decided to pay for the full version It’s too expensive/ I can’t afford it I was using the free version, liked it, but wanted to remove advertisements I prefer to listen to music in a different way I was using the free version, but wanted to be able to listen to the tracks I had specifically chosen Music isn’t that important to me I was using the free version, but wanted to be able to I prefer listening to music on YouTube listen to music offline on my phone I already have too many monthly subscriptions Recommendation from friends/family I don’t understand/feel comfortable with the technology I wanted to listen to a song/album released exclusively through the platform The music I want to listen to isn’t available I got a Smart Speaker and decided to get a subscription to a streaming service There’s just too much music (hard to choose what to listen to) Saw it advertised and liked the look of it The personalisation/recommendations aren’t good enough The audio quality isn’t good enough Other Question: Why Question: Why did you decide Other have you not paid to pay for a to subscribe to a music streaming music streaming Don’t know / Not sure subscription? service? Don’t know / Not sure Base: 3,010 Base: 2,221 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 51

07 MUSIC DISCOVERY MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 53

FM/AM RADIO LEADS DISCOVERY BY AGE

Online sources lead discovery Additionally, discovery through playlists on music MUSIC DISCOVERY among younger generations. streaming services was popular among those aged 16-34 years (16-24: 31%, 25-34: 32%, 35-44: 29% ), in comparison Two thirds (66%) of 16-19 and well over half to the national average (17%), as well as music videos (61%) of 20-24 year olds discovered new recommended by YouTube, which showed a similar pattern. Participants were asked how MUSIC DISCOVERY music through YouTube, both twice the they ‘typically’ discover new national average (33%). Discovering music In contrast, radio and live TV performances were major discovery methods among older age groups. Music played music; music didn’t have to be by playlists on streaming services and through music videos linked from YouTube on FM/AM Radio and live performances on TV were more new in terms of release date, also skewed significantly young. influential among older age groups, with peaks among just new to the respondent. those aged 45-65+. FM/AM Radio leads music discovery. The TOP MEANS OF DISCOVERY BY AGE only options selected by more than a Music played on YouTube quarter of the sample were: FM/AM radio FM/AM radio Total 16-19 20-24 25-34 35-44 45-44 55-64 (46%), YouTube (33%), which leads online discovery, and recommendations from friends (27%). Online discovery shows its importance. In terms of online discovery, YouTube leads at 33%, as well as 15% discovering music Recommendations Music played in through videos linked through the platform from friends films/TV shows Music played on YouTube (recommended page, through the sidebar Recommendations FM/AM Radio from friends etc.). Streaming services (Spotify, Apple

Music etc.), held firm this year in terms of facilitating discovery, with almost a fifth (17%) discovering new music through playlists on streaming services, and a Music played in Playlists on streaming services Music videos linked from further 14% discovering through ‘browsing films/TV shows (Spotify, Apple music, etc) YouTube (through the sidebar, or recommended) similar artists’; a major indication of the Playlists on Music videos linked growing influence these services have on streaming services from YouTube music discovery. Aside from Internet Radio (13%), music Browsing ‘Similar Artists’ Music played on internet radio Music videos shared shared through Facebook (12%) and live on streaming services on Facebook performances from TV programmes (10%), no more than 10% discovered Question: How Question: How do you typically do you typically music through any other method. Browsing ‘Similar discover music? discover music? Music played on Artists’ on Base: 3,000 Base: 3,000 Internet Radio streaming services Live performances Music videos on TV Live performances from TV programmes from gigs/festivals MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 55

GO TO SOURCE SINGLES, ALBUMS POST DISCOVERY OR PLAYLISTS?

Participants were asked, once they had discovery listening – paying to download followed behind Single/Individual tracks Single/individual track listening remains the dominant discovered a new piece of music they like, significantly at just 9%. listening format, accounting for 54% of total listening are still the most popular what their ‘go to’ source was to listen to it. time. Playlists (on streaming services), meanwhile, Reflective of their overall music consumption habits, main Participants could choose one option only. music listening format account for 28%, retaining their lead on albums, which ’go to’ post-discovery sources among 16-34 year olds were while playlists hold the gap account for just 18%. YouTube was the most commonly selected YouTube and a music service they subscribe to (Spotify etc.), source among the total sample at 32%, which accounted for 80% of new music listening (46% and on albums after overtaking In contrast, the older the respondent the more they tend to followed by waiting to hear it on the radio 34% respectively) among the age group. Just 5% would wait last year. listen to single tracks and albums. Single track listening (24%) and then on a music streaming for it to be played on the radio, compared to 24% of the total shares grew as respondents got older, peaking at 60% service (21%). No other option accounted population, and just 2% would buy it on CD or vinyl. among those aged 65+, as did albums at 21%. for more than 20% of the sample’s post- Playlists, on the other hand, skewed female, and were most popular among 16-34 year olds, accounting for 'GO TO' SOURCE POST DISCOVERY approximately 35% of their listening time. Total 16-34 SINGLES, ALBUMS OR PLAYLISTS? YouTube Single Tracks Albums Playlists

Wait for it to be played on the radio Total

A music streaming service you 16-19 use (Spotify, Apple Music, Deezer

20-24 Pay to download it (from iTunes etc) 25-34 Buy it on CD or vinyl 35-44

Download it for free (BitTorrent, 45-54 stream ripping sites etc)

Question: Once you 55-64 have discovered a SoundCloud Question: How new piece of music is your music that you like, what spilt among the would you say is 65+ following? your ‘go to’ source Other to listen to it? Base: 3,000 Base: 3,000 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 57

PLAYLISTS LISTENED TO

1/3 of playlist listening time is they listen on (e.g. Spotify Discover, New Music Friday dedicated to those created by etc.) accounted for over a third (36%) of playlist listening, a major indication of how influential these playlists are streaming platforms. becoming to music consumption and curation. Playlists created by participants Playlists created by someone else (friends etc.) accounted themselves were the most popular, for 12% of playlist listening, and was more prevalent accounting for 54% of playlist listening. among those aged 16-19 (17%). Importantly, playlists created by platforms PLAYLISTS CREATED BY PLATFORMS PLAYLIST LISTENING Playlists created by myself PARTICIPANTS LISTEN Playlists created by someone else (Friends, Experts you follow etc) Playlists created by the platform I listen to ON (E.G. SPOTIFY) (e.g Today’s Top Hits, new Music Friday, Spotify Discover etc) ACCOUNTED FOR Total OVER A THIRD OF 16-19 PLAYLIST LISTENING, 20-24 A MAJOR INDICATION 25-34 OF HOW INFLUENTIAL 35-44 THESE PLAYLISTS ARE

45-54 BECOMING TO MUSIC

55-64 CONSUMPTION AND Question: Of the playlists that you listen to, what percentage are: CURATION 65+ Base: 1,642 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 59

08 MUSIC SPENDING MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 61

PRODUCT SPEND SPEND AMOUNT

All participants were asked 44% had purchased a music related product over the Those who had purchased a importantly, of that 84%, 55% had spent over $100. Festival past 6 months. tickets showed a similar, yet slightly reduced, trend; 76% which, if any, music-related music-related product were had spent at least $40, and of that 73%, 41% had spent products they had purchased Despite its low share of listening and use overall, the CD asked how much they had over $100 . was the most commonly purchased music product. The or been given as a gift over spent on each over a CD was the most popular music purchase at 16%, followed There was high spending among merchandise and vinyl the past 6 months. closely by Mp3 singles/tracks and tickets for music 6 month period. buyers. Approximately half (48%) of those who purchased concerts/gigs at 15%. MP3/Download albums were the 4th Spending increased the more expensive music merchandise spent over $40 on these items over most purchased music product at 11%. the product. Expensive items such as gig the past 6 months. Vinyl buyers had a similar, albeit slightly lower, level of purchase with approximately two No more than 5% had purchased or been gifted the tickets and festival tickets attracted the thirds (64%) having spent over $20 on vinyl albums within remaining music related products tested. highest amount of spending. 86% had spent at least $40 on gig tickets and, the past 6 months - importantly over half of this spending (35%) was over $40. PRODUCTS PURCHASED OVER THE PAST 6 MONTHS Total Male Female THOSE WHO HAD BOUGHT EACH PRODUCT OVER THE PAST 6 MONTHS

1¢ - $9.99 $10 - $19.99 $20 - $39.99 $40 - $99.99 $100+ CD albums/singles MP3/download Tickets for music singles/tracks 3 2 8 31 55 concerts/gigs Tickets for music Tickets for festivals concerts/gigs 8 6 10 35 41 MP3/download albums Music merchandise 11 14 26 34 14 items Music merchandise items Vinyl albums 19 17 29 26 9 Tickets for festivals Pre-paid music voucher 15 26 28 24 7 Music DVDs Music streaming 23 28 24 24 subscription gift card Vinyl albums CD albums/singles 25 31 23 16 6 Pre-paid music voucher Music DVDs 33 28 21 14 4 Music streaming subscription gift card MP3/download albums Roughly Question: Question: Which of 45 26 18 9 1 how much have you the following music personally spent on Vinyl singles products have you Vinyl singles the following in the acquired/bought for 68 18 5 7 3 past 6 months? yourself in the past Base: Various – 6 months? None of the above those who bought Base: 3,000 MP3/download each product 65 15 11 8 singles/tracks 1 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 63

09 GENRES MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 65

TOP GENRES BY AGE

Classic Rock, Rock, and TOP GENRES BY AGE Rock’n’Roll all skewed older, with preference generally Total increasing with age. 16-19 20-24 Pop and Hip-Hop/Rap and Indie/ 25-34 Alternative, by contrast, had a younger 35-44 bias, with preference peaking among those aged 16-34 before dropping off 45-44 proportionately with age. 55-64

Classic Rock Rock Music Indie/Alternative Rock Singer/Songwriter

Pop Music Country/Western R ‘n’ B (Rhythm & Blues) Show Music/Musicals

Rock ‘n’ Roll Hip Hop/Rap Soundtrack Instrumental Question: Which of the following types of music do you generally like? Base: 3,000 MUSIC CONSUMPTION THE OVERALL LANDSCAPE 2018 67

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