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 GENDER AGE REGION participants had online access. Fieldwork was completed in July 2018. The demographic profile of those surveyed was as follows: 16-24 17 NORTHEAST 18% 25-34 17 MIDWEST 22% 35-44 16 SOUTH 45-54 18 37% Male Female 55-64 15 WEST 23% % 65+ 49% 51 16 INCOME PROFESSION 20k 11% Employed full time 44% $20,000-$29,999 9% Employed part time 12% $30,000-$39,999 11% Unemployed and $40,000-$49,999 6% 9% looking for work $50,000-$59,999 10% Unemployed and not 8% looking for work $60,000-$69,999 7% Retired 20% $70,000-$79,999 7% $80,000-$99,999 10% Student 9% $100,000-$149,999 10% Rather not say 2% $150,000 and over 5% Would rather not say 11% 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 20 20 19 17 13 11 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 25 13 19 1 32 10 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 21 18 21 1 29 9 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 17 29 19 7 15 13 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 19 23 22 12 12 12 (16% on each). 45-54 25 20 20 19 6 10 55-64 22 14 16 33 7 9 Question: Of the activities you 65+ 15 14 16 37 5 13 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 215 151 Listening to Music MINS Total 148 TV than any other activity, 215 Watch Episodes/Films on WATCHING TERRESTRIAL TV 123 and time spent watching 110 Online Video Streaming Platforms Playing Video Games rose proportionately as 168 Viewing Social Media Content participants got older, 175 16-24 171 peaking among those aged 157 155 65+ (242 minutes). MINS 151 191 LISTENING TO MUSIC Younger participants spent longer 156 listening to music than any other 25-34 149 122 activity. Time listening to music peaked 123 among the youngest age group (16-24) at 175 minutes, the only instance where 202 159 terrestrial television is topped by another MINS 35-44 154 entertainment source. Time spent listening 148 121 decreased through the older age groups, WATCHING EPISODES/FILMS ONLINE 106 until reaching a low of 109 minutes spent 218 listening per day among those aged 65+. 140 45-54 125 In addition, apart from terrestrial 89 90 television, 16-24 year olds spent longer consuming each media source than any MINS 233 other age group. More modern, digital 123 141 PLAYING VIDEO GAMES 55-64 forms of consumption: watching episodes/ 125 93 films on video platforms (Netflix etc.), 85 playing video games and viewing social media content, recorded the highest usage 242 109 among the youngest age group. Time spent 65+ 141 consuming these formats then decreased MINS 105 73 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 31% of participants’ total 34 35 (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. 27 Total 31 27 1012 57 5 24 On demand streaming accounted for 26 almost three times as much listening time 16-19 12 60 11 9 222 as Digital Downloads, and over five times as much as CDs. After AM/FM Radio, On 20-24 12 49 17 11 3 4 2 demand streaming was the second most 10 12 listened to source, accounting for over a 13 25-34 27 33 16 9 5 5 3 quarter (27%) of daily listening. 12 10 35-44 30 24 14 11 7 7 5 Internet Radio sources (Pandora etc.) 10 accounted for 12% of listening time, up 2% 5 45-54 42 15 10 12 7 6 7 Question: To the YOY, while Satellite Radio accounted for 7%, 7 nearest 15 minutes, 6 how is your and AM/FM Radio stations streamed online 7 music listening 6 55-64 45 11 8 11 11 7 7 time normally accounted for 5%. 6 split between the following sources? 5 3 4 Base: 2,349 65+ 45 8 9 6 14 5 10 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 36 38 38 39 40 44 40 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).