1
Consumption Landscape
September 2016 MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 3
Introduction
6 Section 1: Sample
8 Section 2: Music Consumption
18 Section 3: Device Usage
22 Section 4: Music Streaming Uptake & Perceptions
Contents 30 Section 5: Music Discovery
36 Section 6: Music Spending and Piracy
42 Section 7: User Generated Content MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 5 INTRODUCTION
Today, consumers can listen Crucially, the free reign that consumers have over how they access and consume music means that to any music they want, at the radio and music industries are totally consumer any time, in any place and driven – no one but the audience dictates what music is popular and successful. As in any format, whether it be a result, everybody in music management, downloads, radio, streaming, publishing, broadcasting and streaming must keep their finger on the pulse of the constant changes in CDs or vinyl and, importantly, consumer audio consumption, and how they that privilege costs far less impact the industry as a whole. than it used to, if it costs The report, ‘Music Consumption: The Overall Landscape’, encapsulates a democratic measure anything at all. of audio consumption in the US, and saw a statistically and demographically representative sample of the 15+ US population answer a set of general questions about listening habits. These ranged from share of ear between radio to online sources; to device preferences and piracy behavior; to more detailed questions about playlist use; lean forward / lean back selection; music sharing habits; attitude to pricing; exclusive and hi-res audio and much more. As a result, it uncovers the overall music consumption landscape, how it is changing, and how these changes may reshape the music industry’s macro-environment. It is, therefore, an invaluable tool for any company or person operating within radio or music, and the creative industries at large. MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 7 SAMPLE
3014 Respondents
A statistically and demographically representative sample of the US population.
All respondents had online access.
GENDER AGE
15-19 9% 20-24 9% Male Female 25-34 17% 51 49 35-44 16% 45-54 18% 55-64 15%
65+ 16%
REGION SOCIAL GRADE
< $15K 11% $15K to $24,999K NORTHEAST 20% 11% $25K to $34,999K 12% MIDWEST 24% $35K to $49,999K 14% SOUTH 35% $50K to $74,999K 2% WEST 21% $75K to $99,999K 15% >$100K 15% SECTION 1: Sample MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 9 TIME SPENT LISTENING TO MUSIC Total Sample
At 23%, the most popular listening block was 1 to On average, the total sample listened to 147 minutes 2 hours. of music on a ‘typical day’. Minutes listened dropped as respondents got older, peaking amongst the 15- 68% of respondents listened to music for up to 3 24 year olds at 187, dropping to 85 minutes amongst hours on a typical day, whilst 7% didn’t listen to any the 65+ year olds. music at all. 23%
17%
15% 13%
8% 7%
5%
3% 2% 2% 1% 1% 1% 0% 0% 12+ 11 - 12 10 - 11 9 - 10 8 - 9 7 - 8 6 - 7 5 - 6 4 - 5 3 - 4 2 - 3 1 - 2 1 hour 30 mins None hours hours hours hours hours hours hours hours hours hours hours hours
Average minutes listened: 147 187 179 122 85 MINS MINS MINS MINS MINS Total Sample 15-24 year olds 25-44 year olds 45-64 year olds 65+
Question: To the nearest half hour, how long do you normally spend listening to music in a typical day?
SECTION 2: Music Consumption Base: 3014 MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 11 RADIO RULES THE YOUNGER LISTENING ROOST CONSUMERS ARE HEAVY ONLINE All those who listen to music on a ‘typical’ day LISTENERS Radio is still king, capturing 35% of net daily On demand streaming is second with 24% (digital All those who listen to music on a ‘typical’ day listening. downloads are third with 12% and other internet radio (Pandora etc.) is fourth with 10%; all ahead of Mainstream digital content, meanwhile, are Younger generations are predominantly listening the older age groups with respondents aged 55-64 CDs at 7%. Share of listening shows the percentage, comfortably outperforming physical forms of to on-demand streaming and 65+ listening to radio most (45% and 53%) or share, of time respondents spent on each method music. followed by downloads (13%). of listening – i.e. Broadcast Radio captured 36% of Whilst 24% of the general population listened to respondents’ total listening time. on demand streaming on a ‘typical day’, 51% of *Share of listening can be defined as: The portion, 15-19 year olds and 41% of 20-24 year olds did the or share, of respondent’s total listening time each SHARE OF LISTENING same, a significant over-index. Radio trends up in format accounted for.
SHARE OF LISTENING BY AGE AM/FM Radio 35
53 51 On demand streaming (YouTube, Spotify etc.) 24 45 41 42 Digital Downloads/Files 12 35 33 31 Other Internet Radio (Pandora etc.) 10 27 24 21 22 CDs 7 20 19 17 15 14 14 12 12 13 13 13 13 Satellite Radio (Sirius XM etc.) 6 10 11 1110 11 9 9 7 7 7 7 6 6 6 6 7 4 5 5 3 4 2 2 AM/FM Radio Stations Streamed online 4 2
Total 15-19 20-24 25-34 35-44 45-54 55-64 65+ Vinyl 1 AM/FM RADIO ONLINE STREAMING (OVERALL) ON DEMAND STREAMING (YOU-TUBE, SPOTIFY,ETC) INTERNET RADIO HD Radio 1 DIGITAL DOWNLOADS/FILES PHYSICAL
Question: To the nearest 15 minutes, how is your music listening time normally split between the following sources? Base: 2808 Respondents Question: To the nearest 15 minutes, how is your music listening time normally split between the following sources? Base: 2808 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 13 ONLINE SOURCES ARE RADIO IS STILL CATCHING FM RADIO REACHING ALL IN WEEKLY REACH AGE GROUPS Total Sample By Age
In terms of reach (listened to once for 5 minutes Please note – ‘Online Consumption (Total) is the On demand streaming vastly over-indexes AM/FM Radio listening, meanwhile, peaked or more over a weekly period) FM Radio came net of On-demand streaming and internet radio. amongst younger generations, then declined as amongst 35-44 year olds at 84%. Physical listening top at 78%. This was then followed by Online respondents got older. rose with age, before dropping slightly amongst the Consumption at 72%, on-demand streaming at 65+ year olds. 61%, internet radio at 43%, digital downloads at 33% and physical music at 23%. US WEEKLY REACH - BY AGE
US WEEKLY REACH - NETS 95 93 90 89 84 84 81 82 81 95 78 78 77 78 72 71 68 69 FM Radio 78% 65 63 61 56 56 54 52 50 Online Consumption (Total) 72% 48 43 43 44 44 39 40 40 On-demand streaming 61% 33 31 28 27 2626 25 23 23 21 21 19 Internet Radio 43% 18 13 14
Digital Download 33% Total 15-19 20-24 25-34 35-44 45-54 55-64 65+
Physical Music 23% AM/FM RADIO ONLINE STREAMING (OVERALL) ON DEMAND STREAMING (YOU-TUBE, SPOTIFY,ETC) INTERNET RADIO DIGITAL DOWNLOADS/FILES PHYSICAL
Which, if any, of the following have you used in order to listen to audio content (music or speech) for five minutes or more at any one time during the last Question: Which, if any, of the following have you used in order to listen to audio content (music or speech) for five minutes or more at any one time seven days? Base: 3014 Respondents during the last seven days? Online Streaming (Overall) = On demand streaming + Internet radio (NET) Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 15
It has recently launched its YouTube Red premium The key questions around YouTube for the coming YOUTUBE IS THE subscription service, which covers music and other year are whether other music services can attract verticals, and rights holders are starting to see new listeners and start to fill this value gap and decent pots of revenue slowly emerge from that. whether YouTube will work to increase its Red MOST REGULARY user base and payouts to the music industry while The popularity of on demand music services will finding other ways to generate revenue for rights grow. But for the world’s most accessed streaming holders and appease them, something its recent USED SOURCE FOR service in order to listen to music, the ‘free’ acquisition of D2C commerce Bandpage might help problem is still a big problem. AUDIO CONTENT it work towards.
US WEEKLY REACH BY PLATFORM 42% of respondents said The YouTube value gap is one of the leading industry topics of 2016. Put in context with an equal they used YouTube for five 42% of respondents who said they were happy with YouTube 42% free tiers of music services enough not to upgrade, minutes or more at least once Pandora 31% it is a gap made to feel even glaringly bigger by the Spotify 22% a week to listen to audio. survey results. iTunesCD 18% Pandora follows closely at According to the survey, YouTube was the key iHeart Radio 18% 13% 31% with CDs lagging behind touch point for audio listening across online and Amazon Prime Music 13% offline, especially for the younger generations. Music as digital files 12% at 22%. This rose to 67% in It is also the leading point of discovery behind Facebook 12% recommendations from friends – 34% of Google Play Music 15-24 year-olds. 9% respondents said they discovered music via Apple Music 9% YouTube, which rose to 54% of 15-24 year olds. Amazon Music Store 7% TV Music Channels YouTube has long had a fractious relationship with 7% Vevo the music industry. Praised by marketers for its 5% SoundCloud / SoundCloud Go reach and ability to launch and stoke the release of 5% Vinyl new music on a global level, or to create overnight 3% My SXM sensations like The Harlem Shake, at the same 3% Podcast(s) 3% time it pays out lower royalties to rights holders Shazam 3% per stream than dedicated music services and has An artist’s own online website 3% been criticised consistently at the negotiating table. Rhapsody 3% Vimeo 3% Audible 3% 8Tracks 3%
Which, if any, of the following have you used in order to listen to audio content (music or speech) for five minutes or more at any one time during the last seven days? Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 17 YOUNGER FACEBOOK LEADS GENERATIONS SOCIAL MEDIA USAGE FAVOUR ONLINE PLATFORMS Total Sample By Age Facebook dominates platform usage while Despite its buzz Snapchat is still relatively Twitter is weak. 57% of respondents used niche, with 30% net usage and only 13% using Facebook everyday, whilst 15% used Twitter. it everyday. Pinterest is also used more than YouTube usage is high in the younger age groups, CD’s in comparison to older users, just 11% of Instagram, Snapchat and Vine, with 47% net usage. decreasing consistently with age. Pandora has a 15-19 year olds listening to a CD over a weekly period. fairly even spread, before dropping amongst the Here, on-demand streaming services are making oldest age groups. up the difference. 71% of 15-19 year olds listening to SERVICE USAGE REGULARITY & AWARENESS Younger generations under-indexed on listening to YouTube, and 44% to Spotify over a weekly period.
PLATFORM WEEKLY REACH BY AGE YouTube 33 24 12 14 14 3 Facebook 57 11 6 6 17 3 Netflix 23 19 9 9 35 4 71 Pinterest 12 12 10 14 44 9 63 iTunes 10 11 8 18 47 6 51 42 42 42 46 44 Twitter 15 10 9 13 48 6 39 38 36 37 31 31 28 Google+ 11 9 8 15 48 8 22 22 26 26 25 26 19 19 16 19 18 18 Instagram 18 8 7 9 51 7 14 11 13 7 4 Amazon Prime instant 7 9 7 12 50 15 Spotify 11 8 5 9 52 14 YouTube Pandora CD Spotify LinkedIn 4 7 8 15 53 13 Snapchat 13 6 4 6 59 12 28 26 26 Tumblr 6 5 4 7 60 19 21 19 20 20 18 17 15 16 15 16 Soundcloud 13 11 13 13 14 13 13 14 11 12 13 4 4 5 8 36 44 7 9 6 7 9 6 8 5 Vimeo 3 5 5 8 44 36 Vine 4 3 4 7 55 27 iTunes iHeart Radio Amazon Prime Music Music as digital files Whatsapp 7 3 3 5 43 40 MySpace 2 3 2 7 74 12 16 17 17 20 16 17 Tinder 12 10 14 11 9 11 12 14 9 10 9 12 11 3 3 2 3 56 32 8 7 7 5 2 6 2 2 7 4 4 4 3 Deezer 2 2 2 2 22 69
Facebook Google Play Music Apple Music Amazon Music Store / Amazon Cloud Player I USE EVERYDAY I USE 2-3 TIMES A WEEK I USE ONCE A WEEK I USE LESS OFTEN
TOTAL 15-19 20-24 25-34 35-44 45-54 55-64 65+ I AM AWARE OF THIS WEB-BASED SERVICE BUT DO NOT USE I AM NOT AWARE OF THIS WEB-BASED SERVICE
Which, if any, of the following have you used in order to listen to audio content (music or speech) for five minutes or more at any one time during the last seven days? Base: 3014 Respondents Question: Which of the following statements best describes you in relation to each of the following web-based services? Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 19 FM/AM RADIO IS THE MOST LISTENED TO DEVICE All those who listen to music on a ‘typical’ day
At 33%, Radio took the majority share as the Smartphone device gap. Mobile phone listening device listened to the most. is 2nd with 18% and roughly equivalent to the combined listening on laptop (7%), desktop (8%) Share of listening can be defined as: The portion, and tablets (3%), which acculmulates to (18%). or share, of respondent’s total listening time each device accounted for.
SHARE OF LISTENING BY DEVICE
FM/AM radio receiver 33
Smartphone / Cellphone 18
Desktop computer 8
Laptop or netbook 7
Satellite Radio Receiver (Sirius XM etc.) 7
Internet/wi-fi connected radio receiver 4
In car CD Player 4
Television 3
In-car phone audio connection (wired aux 3
Tablet (iPad etc.) 3
CD Player 3
iPod 2
Other portable mp3 or media player 1
Wireless speakers (Bluetooth etc.) 1
Vinyl Player 1
Other 1
To the nearest 15 minutes, how is your music listening normally split between the following devices?
SECTION 3: Usage Device Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 21 THE SMARTPHONE THE SMARTPHONE IS KING AMONGST REIGNS OVER DAILY YOUNGER LISTENERS LISTENING All those who listen to music on a ‘typical’ day Total Sample
Age distribution across radio receivers starts in the 15-19 age bracket, and gradually decreases The smartphone was the most regularly listened This was then followed by the Smartwatch (31%), low for 15-19 years olds and grows in linear with age. to device, daily, out-performing radio receivers Laptop (30%) and FM/AM radio receiver (29%). fashion as respondents got older to peak at 49% with 46% of respondents saying they use it to Laptop/netbook skews slightly young while satellite amongst those aged 65+. The opposite holds for listen to music every day. radio peaks amongst 35-44 and 65+ year olds. smartphone / cellphone users with a peak at 41% DEVICES: REGULARITY OF USAGE TO LISTEN TO MUSIC
FM/AM radio receiver 29 31 21 6 5 6
DEVICE SHARE OF LISTENING BY AGE Satellite radio receiver 26 28 22 7 7 6
Smartphone / Cellphone 46 18 9 4 6 6 49 In-car phone audio 21 27 24 9 9 7 42 41 39 Smartwatch 31 26 14 3 5 6 33 32 31 Internet/wi-fi connected radio receiver 28 24 18 10 8 7 26 24 Laptop or netbook 30 18 14 7 10 10 20 18 19 14 14 Wireless speakers 15 20 27 14 15 8 11 10 11 9 8 7 8 8 7 6 6 7 8 7 Desktop computer 23 20 15 8 11 11 6 5 3 4 Television 25 20 11 5 9 15 FM/AM radio receiver Smartphone / Cellphone Desktop computer Laptop or netbook Tablet 21 17 18 8 14 11
iPod 11 15 17 21 10 20 14 9 In car CD player 9 14 23 12 20 16 7 7 6 6 6 5 6 Playstation 12 12 19 11 13 16 4 4 4 4 4 4 4 3 3 3 3 3 4 3 3 3 2 Xbox 2 2 2 10 12 19 8 15 17 2 1 1 CD Player 6 11 19 13 25 19 Satellite Radio Receiver Internet / wi-fi connected Television (including a Tablet (iPad etc.) (Sirius XM etc.) radio receiver satellite or cable enabled tv) Vinyl Player 5 7 10 12 27 31
TOTAL 15-19 20-24 25-34 35-44 45-54 55-64 65+ I USE EVERYDAY I USE 2-3 TIMES PER WEEK I USE ONCE A WEEK I USE LESS OFTEN I AM AWARE OF THIS WEB-BASED SERVICE BUT DO NOT USE I AM NOT AWARE OF THIS WEB-BASED SERVICE
To the nearest 15 minutes, how is your music split between the following devices? Question: Approximately, how often do you use each of the following to listen to music? Base: 2808 Respondents Base: Users of each device (2168 FM/AM Radio Receiver users, 2181 Television users etc.) MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 23 17% PAID FOR A PREMIUM SUBSCRIPTION TO A MUSIC STREAMING SERVICE Total Sample
21% of US respondents initially stated that they Last year, in the same annual study, 13% actually have a premium subscription to a streaming service. paid for a subscription to a music streaming However, upon further investigation, 17% actually service. This shows a 31% increase YOY. paid for the service, whilst 4% used the service on a Paid subscriptions skewed slightly skewed male, with free subscription, through a free trial, bundle deal, or 20-34 year olds over-indexing significantly at 29%, using through someone else’s account. in comparison the the general population (17%).
PAID/PREMIUM MUSIC STREAMING SUBSCRIPTIONS
Total 17% 4% 79%
Male 20% 4% 76%
Female 15% 3% 82%
15-19 21% 6% 73%
20 -24 29% 6% 65%
25-34 31% 5% 64%
35 -44 23% 3% 74%
45 -54 11% 3% 86%
55-64 6% 3% 91%
65+ 4% 3% 93%
PAID SUBSCRIPTION FREE SUBSCRIPTION (FREE TRIAL ETC) NO
SECTION 4: Music Streaming Uptake and Perceptions Do you have a paid/premium subscription to a music streaming service?Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 25 SPOTIFY IS THE MOST THE FREE TRIAL IS PAID FOR MUSIC THE MOST EFFECTIVE STREAMING SERVICE CONVERSION METHOD All who have subscribed to a music streaming service Those who pay for a music streaming subscription
Amongst premium subscribers, Spotify (37%), 55% of 15-19 year olds who have a paid for The key driver to paid subscription is a free trial. Pandora (32%), Apple Music (22%) and YouTube streaming subscription subscribe to Spotify, 53% said that they subscribed in order to continue Red (19%) are the most paid for services. a considerable over-index over the general using the full version after a free trial period. population (45%). Meanwhile, the same age group Meanwhile, only 31% of respondents said they Spotify skews to younger users, whereas under-index on paying for Pandora, Amazon Prime decided to pay to remove adverts and and 29% to Pandora, Amazon Prime Music and YouTube Red Music and YouTube Red. use service on mobile. are less favourable.
STREAMING SERVICES SUBSCRIBED TO AMONGST SUBSCRIBERS REASONS FOR PAYING FOR A STREAMING SERVICE
Spotify 45% I used the full version of the 55% service on a free trial period, liked it and decided to pay for 53% Pandora 39% 23% the full version I was using the free version, Amazon Prime Music 28% 8% liked it, but wanted to remove 31% advertisements Apple Music 26% 25% I wanted to use it on my YouTube Red 24% mobile device 29% 15% Google Play Music 18% 7% Recommendation from friends/family 24% Rhapsody 12% 6% I wanted to listen to a Xbox Groove 7% song/album released 0% exclusively through the 17% platform Last.fm 6% 3% Saw it advertised and liked the 10% Soundcloud go 5% look of it 6% Deezer 5% 0% Don’t know / Not sure 5% Tidal 4% 6% Other (Please write in) 7% Other (please specify) 9% 1%
TOTAL 15-19 YEAR OLDS
Which of the following do you have a premium subscriptions to? Why did you decide to pay for a music streaming subscription? Base: 607 Respondents Base: 607 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 27
change: Pandora wants to launch a mid-tier on THE FREEMIUM demand offering and Amazon is rumoured to be exploring lower cost options, including bundling with Alexa, for its own on demand music service, QUESTION In the meantime Spotify and Apple Music are pushing forward with family plans to offset the cost of subscriptions, and may well compete with their own mid-level tiers once these others launch. Will it be enough to lure this 42%?
42% respondents weren’t The freemium question is a difficult one. Failed REASONS FOR NOT PAYING FOR A STREAMING SERVICE services like Rdio have admitted that lack of a paying for music streaming free tier hurt their growth and that once onboard services because they were via subscription users did not stick around long I’m happy using the free enough to become embedded in the service and version with adverts 42% happy using freemium tiers churned. At the same time the economics of free with adverts. ad-supported tiers are very difficult to make work. It’s too expensive 40%
Free tiers are a funnel to paid subscription not a I prefer not to pay for music / prefer to use free music 29% means to an end in themselves and ad-supported sources like YouTube online video platform Muzu.tv recently shut down due to inability to pay rights holders – it was on a It doesn’t appeal to me 28% 50/50 ad revenue split which is likely a less severe I prefer to listen to music in a position than most streaming services. different way 14%
42% of respondents said they were happy using I don’t really understand what it is 3% free tiers with adverts, suggesting that it would be
very hard for music services to upsell nearly half of The content range isn’t good enough 3% respondents to paid subscriptions, leaving them
with already tight profit margins made tighter. This There isn’t enough 2% rose to 55% of 15-24 year-olds and 47% of 25-44 personalisation
year olds, suggesting that free tiers may put off The audio quality isn’t good 1% the younger generations from paying for premium enough subscriptions. Don’t know / Not sure 5% So far mid-tier services like Cür Media in the
US or Bloom.fm in the UK have failed to get Other (Please Specify) 3% off the ground while existing mid tier options, predominantly premium tiers of interactive radio services, have not been a big draw. This is due to
Why have you not subscribed to a music streaming service? Base: 2276 Respondents 29 CHEAPER PRICING OPTIONS16% WOULD38% 2 6% PERSUADE LISTENERS TO PAY FOR STREAMING All who have not subscribed to a music streaming service
40% of those who don’t pay for a streaming Just 10% of respondents said exclusive access to service said that it was because the service was too content by their favourite artists would persuade expensive, the top option ‘a wider range of content’ them to pay for music streaming. This did however, follows, by some margin, at 10%. rise to 25% amongst 15-19 year olds, a significant over-index. PAID MUSIC STREAMING DRIVERS
40% Cheaper pricing options 45%
10% A wider range of content 15% Exclusive access to content (Video, music etc.) from your 10% favourite artists released only through the platform 25%
A specialism in your favourite 9% music genres 14%
- A pay as you go service (99p 9% for 24 hours of listening etc.) 12%
9% Better audio quality 14%
44% Don’t know / Not sure 33%
6% Other (Please Specify) 3%
REACH 15-19 YEAR OLDS
What would convince you to pay for a subscription to a music streaming service? Base: 2276 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 31 YOUTUBE OVERTAKES RADIO AS A LEADING MUSIC DISCOVERY METHOD Total Sample
YouTube leads online discovery, while personal music through Spotify’s browse, recommended recommendations still rule. 34% of respondents or related page, whilst 10% discovered through said that they discover new music via YouTube. their playlists, far ahead of Apple Music’s YouTube is second only after recommendations recommendation and playlists (4%). from friends (46%) and ahead of music/interviews played on FM/AM Radio (32%). 13% discovered TV is still influential, with live performances in fourth at 24% and music videos in fifth with 20%. MUSIC DISCOVERY METHODS
Recommendations from friends 46% YouTube 34% Music/Interviews played on FM/AM Radio 32% Live performances on TV 24% Music videos on TV 20% Music played in films/TV Shows/video games 18% Music videos shared in Facebook 15% Live performances on the Radio 15% Music videos linked from YouTube (Through the sidebar, or recommended) 14% Recommendations by another artist/celebrity you like (Inc. social media posts) 14% Spotify’s browse, recommended or related artists 13% Live performances at gigs/festivals 12% Music/Interviews played on Internet Radio 11% Spotify Playlists 10% Radio adverts 8% TV Talent shows (American Idol, Americas Got Talent) 8% Magazine/Newspaper articles or interviews 8% Billboards or Posters 7% Online adverts 7% Recommendation by experts (Journalists, Bloggers etc.) 6% Spotify Discover Weekly 6% SoundCloud 6% iTunes Genius 5% Music videos shared in Twitter 5% TV Adverts 4% Apple Music recommendations and playlists 4% Newspaper/Magazine Adverts 4% Tracks linked through SoundCloud (Autoplay, recommend sidebar) 3% Other Internet recommendation service (Please specify) 2% Other (Write in) 4% None of the above 10%
How do you typically discover music?
SECTION 5: Music Discovery Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 33 YOUNGER LISTENERS PLAYLISTS DISCOVER MUSIC OVERTAKE ONLINE AND THROUGH ALBUMS FILM, TV & GAMES Total Sample 42% of respondents said for market share and are creating deep and clever The leading two forms of discovery – 15-19 (29%) and 20-24 (24%). Music videos linked playlist ecosystems based on human expertise and recommendations from friends and YouTube from YouTube show a similar but less pronounced Playlists accounted for 31% data, for example Spotify with its editorial playlists – skew young, whereas discovery via live pattern. of total listening, whilst and its Discover Weekly and Release Radar performances on TV skews older, peaking at 65+. algorithm-driven playlists. Music/interviews played on FM/AM on the albums accounted for 22%. Spotify’s browse, recommended or related artists influential in the middle ages, with peaks at 25-34 Meanwhile music services are vying for playlist features skew heavily young with peaks in the and 45-54. Single track listening still market share and launching their own brands in leads the pack with 46%, order to secure powerful launch points point for TOP MEANS OF DISCOVERY BY AGE new releases and not depend on music services but fell 6% YOY from 52% to seed tracks in their own in-house playlists, for
56 55 56 example UMG with its Digster or Hits brands; SME 51 50 53 in 2015. 46 44 42 40 with Filtr or WMG with Topsify. 34 38 38 35 32 31 32 32 31 31 27 29 28 23 24 24 25 iTunes unbundled the album. Now playlists are 20 23 22 The importance of playlists is further underlined by 13 15 further edging out the album format and eating a move to contextual listening, with users making into single tracks’ share of listening, as shown by choices about what they want to listen to according Recommendations YouTube Music/Interviews played Live performances on TV from friends on FM/AM Radio the survey results. Playlists have been lauded as to mood, time of day, or activity for example. In 28 28 the key new format for some time, and playlist return many popular playlists focus on context, for 23 20 22 22 20 21 22 19 19 18 18 15 18 18 16 17 15 16 inventory is the new digital shop front and point of 15 14 15 13 13 14 15 14 13 example Coffee Break listening or songs to work 9 9 10 discovery for listeners on streaming services. out to, something that will continue to drive the Music videos on TV Music played in films/TV Music videos shared Live performances There is an emergent tension between music popularity of playlists as a format. Shows/video games on Facebook on the radio services who produce their own playlists and labels 29 25 25 25 21 24 22 18 19 19 vying for playlist market share on music services. 14 14 14 14 13 16 12 11 11 10 12 13 10 8 6 5 9 8 6 4 4 2 Music services see playlists as a key battleground Music videos linked Recommendations by Spotify’s browse, Live performances at from YouTube another artist/celebrity recommended or related gigs/festivals artists
TOTAL 15-19 20-24 25-34 35-44 45-54 55-64 65+
How do you typically discover music? Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 35 PLAYLISTS MOST PLAYLISTS OVERTAKE LISTENED TO ARE ALBUMS USER MADE Total Sample All those who listen to playlists
Playlists are more popular than albums, and Generally the younger the respondent the less 42% of playlists listened to are not created by single listening is down. Playlists accounted for they’d listen to albums, and the more they’d listen the listener. Of these, 27% are created by the 31% of total listening, whilst albums accounted for to playlists. platform they listen on, and 15% are created by 22%. Single track listening still lead the pack with someone else. 46%, but fell 6% YOY from 52% in 2015. WHAT KIND OF PLAYLISTS DO YOU LISTEN TO?
SINGLES, ALBUMS OR PLAYLISTS? Total 57% 15% 27%
15-19 61% 16% 22% Total 46% 22% 31%
15-19 54% 18% 28% 20-24 57% 18% 24%
20-24 46% 18% 35% 25-34 51% 19% 30%
25-34 43% 21% 35% 35-44 60% 14% 26%
35-44 44% 21% 35%
45-54 61% 10% 27% 45-54 44% 21% 33%
55-64 58% 14% 27% 55-64 46% 24% 27%
65+ 48% 27% 21% 65+ 57% 12% 31%
SINGLE TRACKS ALBUMS PLAYLISTS PLAYLISTS CREATED MYSELF PLAYLISTS CREATED BY SOMEONE ELSE
PLAYLISTS CREATED BY THE PLATFORM I LISTEN ON
How do you typically discover music? How is your music listening split between the following?Base: 3014 Respondents Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 37 63% PURCHASED A MUSIC RELATED PRODUCT OVER 6 MONTHS Total Sample
CDs still most common music product purchase, album downloads, music gift cards and MP3 single at 30% of respondents, followed by live tickets downloads. (19%) and MP3 downloads (16%). 15-19 year olds 63 % of respondents had purchased a music under-index on CD albums and over-index on MP3 related product over the past 6 months.
MUSIC SPENDING
30% CD Albums 21% 19% Tickets for music/concerts/gigs 17% 16% MP3/Download albums that were paid for 19% 16% MP3/Download albums that you got for free 25% 15% MP3/Download singles that were paid for 15% 15% Music gift cards (e.g. iTunes, Spotify, HMV Vouchers) 25% 14% MP3/Download singles that you got for free 25% 10% Music Merchandise items (e.g. t-shirts, posters etc.) 12% 7% Tickets for festivals 10% 7% Vinyl Albums 5% 3% Vinyl Singles 4% 37% None 26%
TOTAL 15-19 YEAR OLDS
Which of the following music products have you acquired for yourself or have been given as a present in the past 6 months?
SECTION 6: Music Spending and Piracy Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 39 54% WOULD AT LEAST 54% SAID THAT THE CONSIDER PAYING COST OF HIGH-RES FOR HI-RES AUDIO IS A DETERRENT Total Sample Total Sample
Consumers on the fence about hi-res. 38% would service said they would definitely be prepared to Cost is the key barrier to hi-res adoption. 54% of 48% are happy with the quality of their existing consider paying a premium for Hi-Res audio but pay a premium and 42% say they would consider respondents said that concern about cost has or music and a worrying 24% (rising to 28% amongst only 16% would definitely pay a premium, paying a premium. might prevent them from purchasing hi-res files, 15-19 year olds) said that they doubt they would be with this rising to 63% of 15-19 year-olds, the same able to tell the difference. Hi-Res is an existing customer upsell opportunity. age group that showed increased interest in hi-res 43% of those who are already paying for a in separate questions. premium/paid subscription to a music streaming
WILLINGNESS TO PAY A PREMIUM FOR MUSIC OF A SUPERIOR SOUND QUALITY BARRIERS TO HI-RES ADOPTION 54% Concern as to the cost 63%
Total 16% 38% 26% 20% 48% I am happy with the quality of my existing music 46% 15-19 13% 45% 25% 16% 24% I doubt I would be able to tell the difference 28% 20-24 24% 36% 28% 11% 16% The files would take up too much storage space 25-34 27% 38% 23% 12% 23%
11% 35-44 19% 36% 28% 17% My music system/devices would not do ‘Hi Res’audio justice 7%
45-54 13% 39% 25% 22% 11% The files would take too long to download 14%
55-64 8% 36% 28% 27% 10% None of the above 6% 65+ 6% 36% 27% 31% 1% Other (Please state) 1%
I WOULD DEFINITELY BE PREPARED TO PAY A PREMIUM I WOULD CONSIDER PAYING A PREMIUM
I WOULD BE FAIRLY UNLIKELY TO PAY A PREMIUM I DEFINITELY WOULD NOT PAY A PREMIUM TOTAL 15-19 YEAR OLDS
Base: 3014 Respondents What, if anything, has or might prevent you from purchasing ‘Hi-Definition / High Resolution’ audio files?Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 41 24% DOWNLOADED MUSIC VIA AN ILLEGAL SOURCE Total Sample
Stream Ripping leads the pirate ship. 15% of respondents have used stream ripping sites or software in the last six months, rising to 29% in 15-19 year olds. This is almost double the use of BitTorrent (8%).
DOWNLOADING MUSIC FROM ILLEGAL SOURCES
8% 7% 15% 2% 76%
From Via Via Stream Ripping None of Cyberlocker Other Bittorrent sites and software these Sites
7% 10% 29% 1% 59%
TOTAL 15-19 YEAR OLDS
Over the past 6 months, have you download music from any of the following? Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 43 CONTENT UPLOADING
Those who use each service
Snapchat users are the most frequent uploaders YouTube users are mostly passive watchers. Only and least passive users of these platforms. 22% of 6% of those who use YouTube frequently upload to those who use Snapchat said that they frequently the site and 74% only ever view or listen to content upload to Snapchat. that others have uploaded.
UPLOADING BEHAVIOUR
Snapchat 35% 43% 22%
Instagram 44% 40% 16%
Beatport 48% 35% 18%
Facebook 48% 38% 14%
Twitter 56% 33% 10%
Tumblr 57% 33% 11%
MySpace 58% 29% 12%
Pinterest 60% 30% 10%
Vine 65% 27% 9%
Soundcloud 66% 25% 9%
Google+ 66% 26% 9%
Vimeo 68% 22% 10%
Bandcamp 72% 19% 9%
YouTube 74% 20% 6%
I ONLY EVER VIEW OR LISTEN TO CONTENT THAT OTHERS HAVE UPLOADED
I MOSTLY VIEW OR LISTEN TO CONTENT THAT OTHERS HAVE UPLOADED BUT SOMETIMES UPLOAD CONTENT MYSELF
I FREQUENTLY UPLOAD CONTENT TO THIS SITE
SECTION 7: User-generated Content Base: Those who used each service MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 45 WHAT KIND OF MUSIC SHARED CONTENT DO THE MOST OVER YOU UPLOAD? FACEBOOK All who upload content to the web Total Sample
Photos are still the most popular upload. 86% Facebook is the leading music sharing method. of respondents upload photos while 47% upload 39% of respondents shared music via Facebook videos and only 20% upload audio. SoundCloud but word of mouth is a strong second with 30% of and Vinyl Listeners over-index on audio uploading, people saying they mentioned the artist / track / with 40% and 41% respectively versus the 20% album to them offline and 21% saying they played it mean. to them offline. WhatsApp is low down in the music sharing pecking order at 5%.
CONTENT FORMAT UPLOADED MUSIC SHARING METHODS
Online via Facebook 39% 47% Offline, I mention the artist / track / album to them 30% Videos 53% Offline, playing it on my phone/device/speakers to them 21% 41%
Online via email 14% 86% Offline, by lending a CD/Vinyl to them 13% Photos/Images 82%
88% Online via other instant messenger 10%
Online via Twitter 10% 20% Online via music streaming service (e.g. Spotify) 8% Audio tracks 25%
15% Online via Skype 6%
Online via Whatsapp 5% 4%
Other (Please Specify) 4% Other 2%
4% None of the above 28%
TOTAL MALE FEMALE
What kind of content do you tend to upload on to the web? How do you usually share music you like with friends and/or others? Base: 1736 Respondents Base: 3014 Respondents MUSIC BIZ CONSUMER INSIGHTS // CONSUMPTION LANDSCAPE 2016 THANK YOU
For any questions about this report please contact our Music Industry Lead: