Streaming Music Pricing Inelastic Stretching
Get full access to this report and assets
Already a MIDiA client? Login here to view this report.
If you are interested this report, or related reports such as Music Consumer Segmentation 2016 Subscriptions Swell Aficionado Numbers, State Of The Streaming Nation A Comprehensive Assessment Of The Global Streaming Music Market and Streaming Music Discovery When The Journey Becomes The Destination get in touch today to enquire about a report bundle.
20,000 Foot View: Pricing has long been an issue for streaming music subscriptions, with the price point having the double challenge of reducing the spending of the most valuable music buyers and being higher than the average spend of most music buyers. Streaming services have worked around the issue with a combination of telco music bundles and aggressive price discounts. However, these tactics place long term pressure on the price point as they create a consumer perception that streaming music should be cheaper. For now, discounts are doing a great job of converting users and of easing consumers into the pricing but the next phase of the streaming market requires a more sustainable approach to pricing strategy.
Key Findings:
- Between 2013 2015 the average monthly revenue music subscriber fell from in to in 2015 of the subscription opportunity across established markets has already been tapped, rising to in Sweden and falling to in Australia
- At the of 2016 there were million a million net increase since compared to a net increase million in 2014 and million 2013
- Subscriber growth accelerate further but peak in culminating in million commercially active by 2020
- Fully featured streaming and aggressive promotional price for services have sucked the out of the mid-tier opportunity
- All You Eat (AYCE) streaming is price with a value of just the range of to is a sizeable opportunity with of existing subscribers interested in a premium plus, multimedia, high definition audio tier continues to present the best balance for AYCE streaming music subscriptions with reducing revenue and only marginally increasing reach
- A gaping exists between ad supported and AYCE premium that can be with niche services and innovations as Amazon Echo
- In the there are different streaming video main price points, ranging from month to compared to for
- Though emerging pricing is more diverse, on Purchasing Power Parity (PPP) basis price points are equivalent to more than
Companies and services mentioned in this report: Amazon, Amazon Echo, Anghami, Blinkbox, CÜR Music, Deezer, Disciple Media, Facebook, France Telecom, FreqsTV, GigRev, Hulu, MusicQubed, Naxos, Orange, Pandora, psonar, Rokmobile, Spinlet, Spinnr, Spotify, SupaPass, QQ Music, The Overflow, YouTube