Polaris Nordic Digital Music in the Nordics

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October 2018 By: Simon Bugge Jensen & Marie Christiansen Krøyer Digital Music Services in the Nordics 2018 Content

3 Background

6 Results

7 Streaming

15 Behavior

23 Attitudes

27 TV/movie streaming

31 About YouGov

2 Background

3 Digital Music Services in the Nordics 2018 Purpose of study

Polaris Nordic (a collaboration between the three Nordic collecting societies Koda, TONO and Teosto) needs knowledge about the use of digital music services in the Nordic region and has conducted a survey in collaboration with YouGov.

The study has previously been conducted in 2015 and 2017. In 2018, the data from 2017 will be included to show the development of on-demand music streaming in the Nordics. This report covers the following topics:

• The market for digital music services

• Behavior and attitude on music streaming

• TV/movie streaming

4 Background Methodology

Sample Methodology Interviews Field Period th National representative The data collection was DK: 1.013 interviews September 14 - rd sample in DK, NO, SE and FI carried out online using the SE: 1.013 interviews September 23 2018 Men/women aged 15-65 Nordic YouGov Panel NO: 1.025 interviews Children aged 12-14 FI: 1.012 interviews

Comparison to 2017 60% For questions comparable to the 2017 study, t-test has been applied to test for statistical significance. 40% Results that are significantly higher in 2018 than in 2017 are marked with a green arrow.

Results that are significantly lower in 2018 than in 2017 are marked with a red arrow.

Display of results 2017 2018

Flags are used the show the result for a given country. The results on a Nordic level are displayed by use of all four Nordic flags pooled together.

Nordic results Danish results Swedish results Norwegian results Finnish results 5 Results

6 Streaming

7 Music consumption – Nordic and countries overview Across the Nordics, 9 in 10 stream music. Around half of the population in Sweden, Norway and Denmark have a paid subscription to a music streaming service

Music streamers 90% 86% 92% 88% 92%

(2017: 80%) (2017: 75%) (2017: 83%) (2017: 81%) (2017: 82%)

Premium subscribers/ 43% 46% 51% 50% 26% bundlers (40%) (43%) (48%) (48%) (22%) Only use free/trial versions 47% 40% 41% 38% 67% (do not have any paid (40%) (31%) (35%) (33%) (60%) subscription) 11% 14% 8% 12% 8% Non streamers (20%) (25%) (17%) (19%) (18%)

Average music streaming time per 11,4 11,1 15,4 18,0 10,5 week (among hours hours hours hours hours streamers)

8 Weekly hours used on streaming paid and free/trial digital audio streaming services – Nordic and countries On a weekly basis almost twice as many hours are spend on streaming of music on paid services than on free/trial versions. Weekly, Norwegians and Swedes spend more hours on paid audio streaming than Danes and Finns

20 Weekly hours - free/trial versions Weekly hours - paid services 18

18,38 16

14 16,40 17,26 12 14,21 13,41 10

8 11,44 9,04 10,16 6 7,80 7,69

9 Only stream music on YouTube and SoMe – Nordic and countries Across the Nordics, 1 in 5 only stream music on services like YouTube and SoMe. In Finland the share is the highest with 30%

20% 19% 13% 14% 30%

The percentages represent the share of people who do not use digital music services and only stream music on services as YouTube and SoMe

10 Nordic profile of people with a paid audio streaming service 43% (in comparison to the general population)

 No gender differences

 18-29 year olds and to a lesser degree 30-39 year olds Premium subscribers/bundlers 43%  Yearly household income more than EUR 93,800 (700,000 DKK/SEK/NOK) Only use free/trial versions (do not have any paid 47%  More frequent concert goers subscription)

Non streamers  Favorite music genres are: Rap/Hip-Hop, Alternative & 11% Indie, RnB/Urban, Pop, Dance & Electronic

 Much more frequent subscribers of TV/movie streaming services

 More who agree that YouTube should pay musicians for their work displayed on the digital service

 More who agree that the price for having access to all music through a paid subscription service is fair

11 Nordic profile of people with a free audio streaming service 47% (in comparison to people with a paid audio streaming service)  No gender differences  More aged 50-65 and fewer aged 18-29 and 30-39  More in the lowest and less in the highest income groups 43%  More Finns than Danes, Norwegians, and Swedes Premium subscribers/bundlers  Less frequent concert goers Only use free/trial  Favorite music genres are: Pop, Rock, 8os music, 90s music, and Classic Rock. versions 47% (do not have any paid  More have purchased CD’s in the past 12 months subscription)  More listen to and watch music on YouTube. More discovers new 11% Non streamers favorite songs on YouTube and on TV. More users of YouTube Music  Spend much more listening to music on Spotify (the free/trial version)  When choosing a music service for listening to music, many more find it important that it is free  Fewer have a paid subscription to video streaming services. Netflix, HBO Nordic, and ViaPlay especially  More often find and music on social media

12 Social media usage More people are using the various social media in the Nordics. Only Google+ is declining

Significant changes from 2017 to 2018

84% 79% Facebook 84% Facebook 76% 80% 74% 44% Instagram 42% 55% 31% Instagram 49% 44% 38% Snapchat 39% 27% 31% Snapchat 26% 35% 17% LinkedIn 34% 2018 2018 33% 28% LinkedIn 25% 9% 2017 23% 2017 Google + 17% 24% 11% 20% 2015 Google + 18% 2015 17% 24% Pinterest 11% 21% 13% 18% 15% Twitter Twitter 16% 21% 2% 17% 4% Pinterest 15% Tumblr 3% 14%

85% 74% 81% 75% Facebook 79% Facebook 68% 58% 42% 53% 37% Snapchat 46% Instagram 23% 54% 16% 50% 24% Instagram 40% Google + 26% 15% 19% 21% 2018 19% 2018 Google + 25% Twitter 18% 21% 2017 17% 2017 20% 17% LinkedIn 21% Snapchat 8% 2015 2015 26% 17% 20% 17% Twitter 20% LinkedIn 13% 18% 18% 16% 15% Pinterest 12% Pinterest 10% 5% 4% 6% 5% Tumblr 6% Tumblr 4%

Social media. Do you currently use one or several of the following services? Base: All 13 Top 5 audio and video services used for streaming of music Across all four Nordic countries, YouTube is the digital service most used for streaming of music. Spotify comes in second. Both Facebook and Instagram are in top 5 in most countries

Spotify usage 66% 73% YouTube Note that the question (Q9a) was multiple YouTube hence the percentages do not sum to 100%

38% 69% Spotify 38% Spotify 64% 33% 64%

19% 2018 19% 2018 YouSee Musik 18% 53% free/trial Facebook 32% free/trial 21% Nordic 50% paid/bundle 70% paid/bundle 17% 2018 12% Facebook Instagram 2018 2018 YouTube 74% 2017 10% 2017 8% iTunes 15% Spotify 54% iTunes 13% 2015 19% 2015 17% Facebook 20%

69% Instagram 11% 85% YouTube YouTube iTunes 10% 58% 51% Spotify 55% Spotify 46% 50% 2018 38% 2018 25% 18% 2018 Facebook 31% free/trial Facebook 43% free/trial 62% free/trial 71% paid/bundle 44% paid/bundle 15% 12% iTunes 16% 2018 61% paid/bundle Instagram 23% 2018 2017 11% 10% 2017 Instagram 2015 YouTube Music 6% 2015

Q7a Which of the following digital music services do you Q7b Which of the following digital services/social media do you use Q9a Which version of Spotify have you used use when listening to music? to watch or listen to music or music videos? within the last 12 months? 14 Base: All Base: All Base: Users of Spotify Weekly time spend on the top 5 audio and video services used for streaming of music Out of the top 5 digital services used for streaming, the most time is spend on Spotify and on paid/bundle Spotify subscriptions in particular. In general, Swedes and Norwegians have a larger time consumption on the services in top 5

Nordic average

10,5 14,00 Nordic average hours

12,3 12,4 12,00 6,8 hours Nordic average Nordic average Nordic average Nordic average 10,00 9,2 4,7 8,3 hours 4,6 4,0 7,9 hours 8,00 4,1 hours 7,4 hours

6,0 5,8 6,00 5,6 5,9 4,9 5,0 5,0 5,1 4,7 4,0 4,00 3,5 3,5 4,1 3,8 3,3 3,2 3,1 3,1 2,00

0,00

Free/trial version Paid/bundle

DK SE NO FI Q8a In a typical week, how many hours do you spend listening to music or watching music videos on the following digital services? 15 Base: Use digital service to listen to music Behavior

16 Concerts – Nordic and countries In the Nordics, 2 in 3 annually attend a concert. Those who go to concerts on average attend 3 concerts a year

Significant changes from 2017 to 2018

3,1 3,1 3,0

62% 3,2 3,2 58% 3,0 3,2 3,0 56% 2,9 3,1 3,1 3,1 2,9 2,9 2,8

63% 64% 64% 62% 60% 61% 57% 57% 55% 57% 52% 52%

2015 2017 2018 2015 2017 2018 2015 2017 2018 2015 2017 2018 2015 2017 2018

Q3 In the past 12 months, have you been to a concert, music Q4 How many concerts, festivals or other live music events festival or other live music event or musical performance? have you been to during the past 12 months? (Average) Base: All Base: Have been to a concert past 12 months 17 Favorite music genres – Nordic and countries Pop & rock are the most favored genres across the Nordics but there are some national variations across the different genres

55% 11% 47% 51% 13% Pop 50% Blues 16% 13% 53% 13% 42% 14% 41% 43% 12% Rock 42% Musicals 12% 13% 47% 13% 32% 6% 30% 31% 14% 80s music 29% Punk/Punk Rock 11% 11% 33% 14% 26% 8% 24% 27% 12% 90s music 23% RnB/Urban 14% 11% 33% 10% Nordic average 23% 10% 29% 26% 11% Classic Rock 26% Alternative & Indie 13% 11% Denmark 24% 10% 15% 10% 28% 23% 11% Sweden Hard Rock/Metal 20% Soul/Funk 11% 11% 29% 10% 17% 7% Norway 21% 21% 12% 70s music 21% Reggae 12% 10% 24% 9% Finland 14% 10% 20% 19% 10% Dance & Electronic 19% Jazz 11% 10% 25% 9% 17% 9% 19% 18% 8% 60s music 16% Folk 9% 8% 20% 6% 12% 5% 14% 17% 7% Rap/ Hip-Hop 20% Latin 8% 8% 23% 12% 13% 6% 16% 16% 6% Country 21% World Music 10% 8% 13% 10%

0% 25% 50% 75% 100% 0% 25% 50% 75% 100%

Q5New What are your favorite genres of music? Base: All 18 Channels where a new song was discovered – Nordic Radio is still the main channel for discovering new songs

36% I heard it first on the radio 37% 39%

11% I heard it first on YouTube 12% 10%

11% A friend played the song 9% 11% 2018 11% I heard it first on a streaming service dedicated to music (not YouTube) 10% 8% 2017

6% 2015 I heard it first on TV 7% 6%

4% I discovered the song via Facebook, Instagram or similar social media 6% 5%

2% I heard it first at a concert 2% 2%

2% I heard it first on some other Internet site 2%

Q21 Think back to the last time you discovered a new song/piece of music you really liked: How did you discover it? 19 Base: All Channels where a new song was discovered - countries Significant changes Radio is still the main channel for discovering new songs from 2017 to 2018

45% 31% I heard it first on the radio 44% I heard it first on the radio 33% 46% 33% 10% 11% A friend played the song 9% A friend played the song 9% 9% 12% 8% 11% I heard it first on YouTube 9% I heard it first on YouTube 11% 9% 12% I heard it first on a streaming service 7% I heard it first on a streaming service dedicated 14% 8% 2018 12% 2018 dedicated to music (not YouTube) 7% 12% 2017 to music (not YouTube) 4% 6% 2017 I heard it first on TV 6% I heard it first on TV 7% 5% 2015 7% I discovered the song via Facebook, 5% I discovered the song via Facebook, Instagram or 3% 2015 5% 5% Instagram or similar social media 3% similar social media 5% 3% 2% I heard it first at a concert 3% I heard it first at a concert 1% 3% 1% 2% 3% I heard it first on some other Internet site 2% I heard it first on some other Internet site 2% 2% 2%

30% 37% I heard it first on the radio 32% I heard it first on the radio 37% 36% 41% 12% 10% A friend played the song 9% A friend played the song 10% 9% 10% 11% 15% I heard it first on YouTube 12% I heard it first on YouTube 15% 10% 12% I heard it first on a streaming service dedicated 12% 2018 I heard it first on a streaming service 9% 11% 9% 2018 to music (not YouTube) 9% dedicated to music (not YouTube) 5% 8% 2017 6% 2017 I heard it first on TV 7% I heard it first on TV 6% 8% 5% I discovered the song via Facebook, Instagram or 5% 2015 I discovered the song via Facebook, 4% 2015 7% 5% similar social media 6% Instagram or similar social media 5% 3% 2% I heard it first at a concert 3% I heard it first at a concert 2% 3% 2% 2% 2% I heard it first on some other Internet site 2% I heard it first on some other Internet site 2% 3% 3%

Q21 Think back to the last time you discovered a new song/piece of music you really liked: How did you discover it? 20 Base: All Channels where a new song was discovered – by age Radio is primarily used to discover new music by people over 40 years old. Young people primarily discover new music through friends and YouTube

12-17 23% 17% 14% 33% 10% 11% 12% 15% I heard it first on YouTube 9% 12% 13% 18% 4% 13% 13% 15% 5% 7% 7% 9% 18-29 2% 2% 3% 4% 2% 7% 6% 6% I heard it first on TV 7% 7% 7% 4% 30-39 2% 3% 8% 4% 6% 8% 10% 9% 11% 13% 12% 9% 40-49 29% 16% 15% 24% I heard it first on the radio 43% 28% 31% 34% 56% 32% 32% 42% 56% 45% 45% 52% 50-65 4% 4% 3% 2% I heard it first on some other Internet 2% 4% 3% 3% 1% 3% 2% 2% site 1% 2% 1% 3% 2% 1% 2% 1% 6% 8% 18% 16% I heard it first on a streaming service 16% 21% 28% 18% 3% 17% 13% 12% dedicated to music (not YouTube) 8% 15% 7% 5% 2% 7% 3% 4% 4% 2% 0% 0% 4% 3% 3% 3% I heard it first at a concert 1% 2% 4% 2% 4% 1% 2% 2% 3% 1% 2% 1% 6% 8% 8% 5% I discovered the song via Facebook, 9% 4% 7% 5% 6% 2% 5% 4% Instagram or similar social media 3% 3% 3% 4% 4% 3% 5% 3% 30% 25% 27% 20% 12% 12% 15% 14% A friend played the song 5% 11% 6% 10% 9% 11% 13% 9% 7% 8% 9% 6%

Q21 Think back to the last time you discovered a new song/piece of music you really liked: How did you discover it? 21 Base: All Purchase of music - Nordic The number of people who purchase music has declined across the Nordics. It is primarily caused by fewer people purchasing CD’s

Significant changes from 2017 to 2018

14% Yes, I have purchased music downloads 16% 16% 2018

15% 2017 Yes, I have purchased CDs 18% 19% 2015

6% Yes, I've purchased albums or singles in vinyl format 7% NET: Have purchased music 6% 31% 35% 34% 2% Yes, I've purchased music in other physical format 3% 3%

Q6 In the past 12 months, have you purchased music downloads, or music in a physical format, such as CDs or vinyl albums? 22 Base: All Purchase of music - Countries The number of people who purchase music has declined significantly in Denmark, Sweden, and Finland

Significant changes from 2017 to 2018 11% 11% Yes, I have purchased music downloads 15% Yes, I have purchased music downloads 15% 14% 14%

13% 2018 14% 2018 Yes, I have purchased CDs 15% Yes, I have purchased CDs 16% 19% 2017 17% 2017 2015 2015 Yes, I've purchased albums or singles in vinyl 6% Yes, I've purchased albums or singles in vinyl 6% 7% 7% format format 4% NET: Have purchased music 6% NET: Have purchased music

2% 3% Yes, I've purchased music in other physical format 3% 27% 32% 32% Yes, I've purchased music in other physical format 2% 28% 32% 34% 2% 3%

21% 11% Yes, I have purchased music downloads 20% Yes, I have purchased music downloads 13% 24% 10%

15% 2018 17% 2018 Yes, I have purchased CDs 20% Yes, I have purchased CDs 22% 19% 2017 22% 2017 2015 2015 Yes, I've purchased albums or singles in vinyl 7% Yes, I've purchased albums or singles in vinyl 5% 8% 6% format format 8% NET: Have purchased music 3% NET: Have purchased music 4% 3% Yes, I've purchased music in other physical format 4% 39% 41% 41% Yes, I've purchased music in other physical format 4% 30% 35% 30% 4% 2%

Q6 In the past 12 months, have you purchased music downloads, or music in a physical format, such as CDs or vinyl albums? 23 Base: All Attitudes

24 Should Facebook pay for use of music? Nordic and countries Nearly half in the Nordics find it fair for Facebook to pay some of their revenue to music artists for music used on the social media. Fewer Swedes and Norwegians agree with the statement while an increasing number of Danes agree

Significant changes 51% from 2017 to 2018 DK 44% Results shown for Topbox [Agree/Strongly agree] 39%

It would be fair if Facebook paid 41% some of their revenue to the SE 45% songwriters and performers of the 44% ❞ music you can find on Facebook. 2018 2017 40% 2015 NO 41% 39%

52% FI 55% 56% Nordic average 2018: 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q16 Do you agree or disagree with this statement? It would be fair if Facebook paid some of their revenue to the songwriters and performers of the music you can find on Facebook Base: All 25 Should YouTube pay for use of music? Nordic and countries Compared to Facebook, slightly more agree that it would be fair for YouTube to pay some of their revenue to songwriters and performers of the music you can find on YouTube. Significantly less Swedes agree in comparison to the other Nordic countries

Significant changes from 2017 to 2018

Results shown for Topbox [Agree/Strongly agree]

56% 43% It would be fair if YouTube paid some of their revenue to the songwriters and performers of the ❞ music you can find on YouTube.

54% 56%

Nordic average 2018: 49%

Q16b Do you agree or disagree with this statement? It would be fair if YouTube paid some of their revenue to the songwriters and performers of the music you can find on YouTube Base: All 26 Attitudes towards music and rights - Nordic and countries Across the Nordics, 7 in 10 agree that it is fair that online services who use music, pay a share of their revenue to the creators of the music. Compared to Sweden and Denmark, significantly more Norwegians and Finns think that the price for getting access to almost all music through a subscriptions based streaming service is cheap

20% DK 18% Significant changes 19% from 2017 to 2018 24% 27% 2018 “I often find interesting music via SE 24% 26% 2017 32% Results shown for Topbox social media” NO 30% 29% 2016 [Agree/Strongly agree] 33% 28% FI 22%

10% 7% DK 9% 13% 2018 “I often share links to music tracks, 12% 13% SE 13% Nordic average 2018 music videos or playlists on social 15% 2017 15% media” NO 15% 23% 2016 23% FI 15%

DK 23% “I think that the price for getting SE 16% 27% access to almost all music through a 2018 subscription based streaming NO 36% service is cheap” FI 34%

“I think it's fair that online services DK 69% who use music as a part of their SE 69% 69% business, pay a share of their 2018 revenue to the creators of the NO 66% music” FI 73%

Q24 Do you agree or disagree with each of the following statements? 27 Base: All TV/movie streaming

28 Streaming of TV/movie content – an overview of the Nordic markets

Nordic total Has at least one TV/movie content streaming service 61% 63% 62% 66% 58%

Average streaming time per week (among TV/movie streamers) 11,1 hours 12,7 hours 12 hours 12,4 hours 11,6 hours

Q11 Do you currently subscribe to one or several of the following digital services providing TV and/or movie content? 29 Base: All Streaming of TV/movie content – Nordic and countries Across all four Nordic countries, there are significant increases in the number of people who subscribe to video streaming services, Netflix and HBO Nordic especially

46% 47% Netflix 42% Netflix 37% 33% 30% 19% 22% Viaplay 18% Viaplay 20% 13% 18% 19% TV2 Play 16% 16% 9% HBO Nordic 11% 6% 19% HBO Nordic 13% 2018 Nordic 16% 2018 9% C More 12% 8% 2017 2018 2017 C More 6% 4% Dplay 2% 3% 2015 Dplay 2% 2015 Netflix 2% 46% Amazon Prime 1% 3% Amazon Prime 1% Viaplay 17% 2% HBO Nordic 16% Other 2% Other 1% 4% C More 10% 37% 39% None 44% None TV2 Play 5% 54% Elisa Viihde 4% 53% 37% Other 3% Netflix 31% Netflix 48% 22% 36% Amazon Prime 3% 14% 21% Elisa Viihde 12% HBO Nordic 15% Dplay 2% 8% Sonera Viihde 1% 11% 17% C More 7% Viaplay 15% None 38% 11% 2018 9% 2018 HBO Nordic 6% 6% 3% C More 5% 2017 2017 8% Viaplay 8% 5% 2015 4% 2015 Amazon Prime 2% 4% Sonera Viihde 5% 4% Other 5% 3% 5% Other 4% 5% 34% 42% None 40% None 50% 54% 71%

30 Weekly time spend on streaming TV/movie content – Nordic and countries Across the Nordics, subscribers spend the most time per week on watching Netflix. Looking at Amazon Prime in Sweden and Norway, the time usage is equal to that of Netflix. Danes in general have a lower weekly time usage on video streaming service than the other Nordic residents

10,00 Nordic DK SE NO FI 8,9 9,00 8,9 8,8 8,48,1 8,00 8,0 7,5 7,2 7,4

7,00 6,88 6,5 7,1 5,6 6,4 6,4 5,3 6,6 6,00 5,7 6,0 4,87 5,00 5,2 4,16 4,68 4,40 4,00

3,00

2,00

1,00

0,00

Q12b In a typical week, how many hours do you spend on watching TV/video content from the following services? 31 Base: Subscribers of the video streaming service 32 About YouGov YouGov panels With 30 offices in 20 countries and panels in 38 countries, YouGov’s international market analysis reach is one the world’s 10 greatest.

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35 About YouGov Meet your team

Nikolaj Harlis Poulsen Simon Bugge Jensen

Account Manager Insights Consultant

Nikolaj is primarily focusing on developing business Simon has worked within market research since 2014 and joined YouGov in relationships with clients, especially within the 2016. Simon is responsible for conducting quantitative research projects retailer- and media industry. He has several years of and is and handles the entire research process from developing the experience with market research and analysis in questionnaire to presentation of the results. Simon is experienced with general. Nikolaj holds a Master’s degree in Sociology handling all sorts of research projects on behalf of clients representing a from Aalborg University. wide array of sectors such as FMCG, Retail, Entertainment and NGO’s. Simon holds an MSc. from Copenhagen Business School.

E: [email protected] E: [email protected] M: +45 2597 0795 M: +45 4167 8025