Streaming subscriptions to account for third of global music spend
July 1, 2015
According to Futuresource Consulting, the launch of Apple Music will lead to a significant increase in streaming music subscriptions. Futuresource Consulting predicts subscriptions will reach at least one third of total global consumer music spend by 2016.
Futuresource’s lead entertainment analyst David Sidebottom referred to the latest music tracker service commenting that, “global consumer spend on music streaming subscriptions reached $3 billion in 2014, which equates to 16 per cent of total music market spend.
Futuresource’s wide reaching consumer research programme ‘Living with Digital’ highlights trends which reenforce this position by highlighting significant growth in the sales of audio hardware. Around 40 per cent of tablet and smartphone users playout music from those devices to other audio hardware, such as wireless speakers.
“The launch of Apple music is another part of the audio renaissance we are currently witnessing” continued Sidebottom. “It is unprecedented, making its success difficult to predict, however the service could potentially hit tens of millions of users almost instantly, and many users will likely be drawn by the three-month free trial period.”
The Living with Digital Report also demonstrates a wide variety of tastes and preferences across different regions. 45 per cent of UK streaming subscribers cite being able to listen to tracks offline as a reason to subscribe, compared to only 21 per cent in France. In the US and UK, 45 per cent would subscribe to discover new music, compared to just 26 per cent in Germany. In the US, 90 per cent of 16-25 year old smartphone users use their smartphones to listen to music