Streaming Music Discovery When The Journey Becomes The Destination

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            on-demand music streamers use these            mainly to listen to music            already know 
• Just            of            streamers mainly use free streaming            discover new music 
           of free streamers buy music when they discover it on free streaming but            stream the music more
• The balance            using free streaming to listen            old and new music is            similar across all ages
• The key            between ages though is            year            who are            points more likely            use free streaming to listen            music they already know
• A strong            is emerging for making on            free streaming sites look less            Spotify and more like Pandora
• However a            must be struck that protects            promotional roles these sites play            that ensures masses of users            not simply pushed into unlicensed           

Companies mentioned in this report: Spotify, Pandora, Soundcloud, YouTube, Vevo, Apple