Brazil Streaming Music Market Breaking The Mould

The 20,000 Foot View: The successful markets in the traditional music industry were those with highest levels of consumer spending. It was an industry biased towards North America and Europe. Part of the transformative potential of streaming is that it can monetize consumption rather than just spending, making a country’s population size as important as its spending power. Brazil is a test case for this streaming hypothesis. It has scale and demand but weaker consumer spending power than more developed markets. As is often the case with large, lower income markets the population is so big that the more affluent urban elites are sizeable enough in their own right to translate into a sizeable premium market in their own right. But the full potential of the market needs a more nuanced and innovative approach. Something that is now starting to take place with important lessons and practises for other markets to pay heed to.

Key Findings:

• Brazil’s subscription            grew by            in 2016, with            number of subscribers hitting            million
           of Brazilian consumers stream music videos, only            points off music radio penetration            of Brazilian YouTube and Vevo users stream only listening to the audio
• Spotify has            clear lead among subscription and            services with            WAU penetration 
• Deezer, Apple            Napster and Claro Musica all            have significant subscriber bases
• Brazil’s subscriber            is differentiated from other countries            innovative pricing and telco strategy
• Brazil will                       million subscribers in 2025 generating            while            million free audio users            drive            million

Companies and brands mentioned in this report: Apple Music, Claro Musica, Deezer, Napster, Palco            Spotify, TIM, Vevo, Vivo, YouTube