Next Steps For Telco Music The Revenue Or User Dilemma
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20,000 Foot View: Streaming’s early fortunes were intimately tied to telco music strategy, with the streaming services eager to piggy back telcos’ much larger marketing budgets and telcos equally keen to pursue marketplace differentiation and brand kudos. Telco music bundles are delivering more revenue and users than ever before but their relative role in the streaming economy has lessened. At the end of 2016 the picture has changed markedly. Like a marriage that has lost its spark, both parties value each other’s company but no longer cast each other covetous glances. But just as with a tired marriage, there are still good times and both parties would rather work out how to build a new relationship within the confines of their existing union rather than part ways.
Key Findings
- Apple Music Spotify accounting for the majority the growth in 2016 and the total million commercially active at the end of 2016
- The total of active telco partnership (mobile fixed line) grew from in to in 2017
- Europe is leading region, accounting for of partnerships, with while Asia is
- Deezer remains leader in terms of partnerships from 2015) while Spotify grew to of telco bundled subscribers are now aged under compared to of paid subscribers
- A shift shorter term telco bundles is place that is causing discord partners
- Bundles remain for emerging stage markets but approaches and differentiated, telco-optimised offerings needed in established markets
Companies and services mentioned in this report: Anghami, Apple Music, Axiata, Deezer, Digi EE, KKBox, KPN, Medianet, MusicQubed, Napster, Netflix, Optus, SOCAN, Spark, Spotify, Telenor, Tidal
NOTE: A full list of music telco partnerships and a telco revenue model are included in the excel spreadsheet posted alongside this report for Data Access subscribers.