Streaming Music Discovery When The Journey Becomes The Destination
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The 20,000 Foot View
When YouTube first starting rising to prominence streaming music was still in its infancy. Thus even though royalty payments were far form setting the world alight, there was a clear case for YouTube views driving discovery which then led to sales. Fast forward to 2015 and digital sales are rapidly losing ground to streaming which in turn throws into question the entire raison d'etre of on demand free streaming as a driver of sales. Add into the mix that only a minority of consumers use free streaming to discover new music and you have the ingredients for a perfect storm.
Key Findings
- Half of free on-demand music streamers use these services mainly to listen to music they already know
- Just of free streamers mainly use free streaming to discover new music of free streamers buy music when they discover it on free streaming but stream the music more
- The balance between using free streaming to listen to old and new music is broadly similar across all ages
- The key difference between ages though is year olds who are points more likely to use free streaming to listen to music they already know
- A strong case is emerging for making on demand free streaming sites look less like Spotify and more like Pandora
- However a balance must be struck that protects the promotional roles these sites play and that ensures masses of users are not simply pushed into unlicensed alternatives
Companies mentioned in this report: Spotify, Pandora, Soundcloud, YouTube, Vevo, Apple