Last week PMI attended the AIM ‘Music Connected’ day in London Bridge along with many other industry figures and companies. As part of the pre-arranged topics for discussion, the digital music framework came into question regarding consumer habits switching from downloading music to streaming it. Below are some of the points that came up on the day which may go a long way to shaping the way record companies make their assets available for public consumption over the next few years.
Discussion Points
- Streaming is becoming very popular whilst the volume of downloads are slowing.
- There are many common misconceptions about streaming, primarily it is a technology not a business model. It is a delivery mechanism bringing momentum and visibility to a wide range of musical genres.
- YouTube currently streams more content than Spotify and is widely recognised as having the best digital music catalogue on the planet without actually being a music database.
- What we do not currently know about streaming:
- Does streaming reduce piracy?
- Will streaming replace radio?
- Streaming uses’ settle into quite predictable repetitive streaming patterns. Why is this?
- Peak times for people streaming music on Spotify tend to be weekday evenings.
- 19.5M monthly Spotify users on Facebook with Facebook rapidly growing Spotify’s users by approx 100k users per day.
- Rhapsody took 11 years to get to the same users Spotify built up in 7 quarters (a large percentage of Rhapsody’s market share came courtesy of their acquisition of Napster).
- Spotify has become a marketing funnel.
- Mobile will be the most listened to platform for music listeners in 5-10 years (we believe it will be much sooner than that).
- Long term music consumption will shift from ownership to access.
- 19 out of the top 30 economies will be emerging markets.
- In 2050, China’s wealth per head will increase by 800% where as in the US it will only increase by 80%. China will overtake the US in that respect by 2018.
This is all food for thought and feels like another large change will soon be upon labels already at an early stage within the digital music evolution…..watch this space!