Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Rapid growth behind, rapid growth ahead
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- Figure 1: US sales and fan chart forecast of ad sales and subscription revenues for streaming music, 2009-18
- Competing for ad dollars and consumer dollars with terrestrial and satellite radio
- Key players
- Pandora: twice the penetration of any competitor
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- Figure 2: Streaming music services used in past week, October 2013
- The consumer
- Traditional radio still dominates, followed by internet radio and then satellite
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- Figure 3: Listening to music via terrestrial, satellite, and internet radio, and personally owned music, October 2013
- Similar time spent with internet radio as personally owned music
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- Figure 4: Hours spent in past week listening to music via terrestrial, satellite, and internet radio, and personally owned music, October 2013
- Younger listeners spend more time with internet radio than terrestrial radio
- Efficacy of internet radio ads above terrestrial radio
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- Figure 5: Response to radio ads, October 2013
- Home usage the norm for internet radio, cars carrying AM/FM
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- Figure 6: Locations where satellite, terrestrial, and internet radio are used, October 2013
- What we think
Issues and Insights
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- Is there a barrier to entry?
- The issues
- The implications
- Why are the world’s largest tech firms in Pandora’s box?
- The issues
- The implications
- Is the ownership model for music dying?
- The issues
- The implications
Trend Applications
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- Trend: Click and Connect
- Trend: Guiding Choice
- Mintel Futures: Access Anything Anywhere
Market Size and Forecast
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- Key points
- Annual sales at 37% growth
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- Figure 7: US sales and forecast of ad sales and subscription revenues for streaming music, at current prices, 2009-18
- Figure 8: US sales and forecast of ad sales and subscription revenues for streaming music, at inflation-adjusted prices, 2009-18
- Fan chart forecast
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- Figure 9: Total US sales and fan chart forecast of ad sales and subscription revenues for streaming music, 2009-18
Competitive Context
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- Key points
- Terrestrial
- Poaching listening hours from terrestrial radio
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- Figure 10: Reduction in use of terrestrial radio because of internet, October 2010-June 2013
- Figure 11: Attitudes to streaming media and reduction in use of terrestrial radio because of internet, by age, November 2012-June 2013
- Satellite radio
- Music sales
Market Drivers
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- Key points
- Internal drivers
- Recommendation systems, new music discovery, and library size
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- Figure 12: Attitudes to personalized radio stations, by age, October 2013
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- Figure 13: Attitudes to personalized radio stations, by time spent listening to music in past week, October 2013
- Figure 14: Attitudes to personalized radio stations, by hours spent listening to internet radio in the past week, October 2013
- Limitations on skipping
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- Figure 15: Terminating listening sessions because of skipping limitations, by age, October 2013
- Mobile usage held back by costs of data, fees, UI
- External drivers
- Home internet subscription
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- Figure 16: Household penetration of internet service subscription, October 2011-June 2013
- Figure 17: Household penetration of internet service subscription, by household income, November 2012-June 2013
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- Figure 18: Household penetration of internet service subscription, by age, November 2012-June 2013
- Mobile device ownership and mobile internet speed
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- Figure 19: Smartphone and tablet ownership, by type/brand/OS, by age, June 2013
- Figure 20: Personal and household ownership of computers, July 2010-March 2013
- In-car electronics
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- Figure 21: Interest in in-car electronic features when purchasing next vehicle, June 2013
Leading Companies
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- Key points
- Pandora clear leader
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- Figure 22: Streaming music services used in past week, by age, October 2013
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- Figure 23: Streaming music services used in past week, by household income, October 2013
Innovations and Innovators
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- Songza: handcrafted and local
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- Figure 24: Songza YouTube Video, 2013
- Rewarding users for social media capital
- Jango limits ads for listeners linking social media accounts
- Friends as DJs and content creators
- Posting and checking likes limited
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- Figure 25: Social media usage in relation to internet radio, by age, October 2013
- Figure 26: Social media usage in relation to internet radio, by time spent listening to music in past week, October 2013
Marketing Strategies
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- Overview
- iHeart, Google just lay it out
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- Figure 27: iHeartRadio ad, 2013
- Figure 28: Google Play Music ad, 2013
- Slacker takes aim, fires
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- Figure 29: Slacker video promotion, 2013
- eMusic, Last.FM: Retro ads for high-tech services
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- Figure 30: eMusic video promotion, 2013
- Figure 31: Last.FM video infomercial, 2013
- Rdio: a song a week and link to Facebook
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- Figure 32: Rdio weekly music promotion I, 2013
- Figure 33: Rdio weekly music promotion II, 2013
- MySpace: high-quality ties to individual musicians
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- Figure 34: MySpace Bunny Holiday promotion, 2013
- Figure 35: MySpace Riff Raff promotion, 2013
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- Figure 36: MySpace Amadeus Leopold promotion, 2013
Usage
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- Key points
- Penetration for terrestrial radio still tops
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- Figure 37: Listening to music via terrestrial, satellite, and internet radio, and personally owned music, by age, October 2013
- Younger listeners spend more time with internet radio than terrestrial radio
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- Figure 38: Hours spent in past week listening to music via terrestrial, satellite, and internet radio, and personally owned music, by age, October 2013
- Figure 39: Frequency of use of internet radio in past 30 days, by age, November 2012-June 2013
- Highest-income group shows decreased radio usage
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- Figure 40: Listening to terrestrial, satellite, internet radio, and personally owned music, by household income, October 2013
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- Figure 41: Hours spent in past week listening to music via terrestrial, satellite, and internet radio, and personally owned music, by household income, October 2013
- Location
- Internet radio usage primarily occurs at home
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- Figure 42: Locations where terrestrial, satellite, and internet radio, and personally owned music are used, October 2013
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- Figure 43: Home usage of terrestrial, satellite, and internet radio, and personally owned music, by age, October 2013
- Figure 44: Home usage of terrestrial, satellite, and internet radio, and personally owned music, by household income, October 2013
- Usage in cars
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- Figure 45: In-vehicle usage of terrestrial, satellite, and internet radio, and personally owned music, by age, October 2013
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- Figure 46: In-vehicle usage of terrestrial, satellite, and internet radio, by household income, October 2013
- Usage at work
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- Figure 47: At work usage of terrestrial, satellite, and internet radio, and personally owned music, by age, October 2013
- Figure 48: At work usage of terrestrial, satellite and internet radio, and personally owned music, by household income, October 2013
- Usage at gyms or while exercising
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- Figure 49: Use of terrestrial, satellite, and internet radio, and personally owned music at gyms or while exercising, by age, October 2013
Response to Terrestrial and Internet Radio Ads
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- Key points
- Efficacy of internet radio ads above terrestrial radio ads
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- Figure 50: Response to terrestrial and internet radio ads, October 2013
- 18-34s respond to internet radio ads
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- Figure 51: Response to ads heard on internet radio, by age, October 2013
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- Figure 52: Response to ads heard on terrestrial radio, by age, October 2013
- Figure 53: Clicking on ads seen on internet radio stations, by age, October 2013
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- Figure 54: Response to ads heard on internet radio, by household income, October 2013
- Figure 55: Response to ads heard on terrestrial radio, by household income, October 2013
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- Figure 56: Clicking on ads seen on internet radio stations, by time spent listening to music in past week, October 2013
Purchasing Music
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- Key points
- Purchasing discoveries
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- Figure 57: Purchasing music heard on internet radio, by age, October 2013
- Figure 58: Purchasing music heard on internet radio, by time spent listening to music in past week, October 2013
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- Figure 59: Termination of listening sessions because of skipping limitations, by time spent listening to personally owned music in past week, October 2013
- Continuing investment in personal libraries
- Physical sales
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- Figure 60: Incidence of CD purchasing in past 12 months, October 2010-June2013
- Figure 61: Number of CDs purchased in past 12 months, October 2010-June 2013
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- Figure 62: Incidence of CD purchasing in past year, by age, November 2012-June 2013
- Digital music sales
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- Figure 63: Music downloads versus use of internet radio in past 30 days, by age, November 2012-June 2013
- Figure 64: Music downloads versus use of internet radio in past 30 days, by household income, November 2012-June 2013
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- Figure 65: Number of music downloads purchased in past 12 months, by age, November 2012-June 2013
Race and Hispanic Origin
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- Key points
- Elevated usage of internet radio among minority groups
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- Figure 66: Hours spent in past week listening to music via terrestrial, satellite, internet radio, and personally owned music, by race/Hispanic origin, October 2013
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- Figure 67: At home usage of satellite, terrestrial, internet radio, and personally owned music, by race/Hispanic origin, October 2013
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- Figure 68: Music downloads versus use of internet radio in past 30 days, by race/Hispanic origin, November 2012-June 2013
- Response to ads
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- Figure 69: Response to ads heard on internet radio, by race/Hispanic origin, October 2013
- Figure 70: Response to ads heard on terrestrial radio, by race/Hispanic origin, October 2013
Appendix – Service Features of Streaming Music Suppliers
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- Figure 71: Streaming music service features, by company, December 2013
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Appendix – Additional Consumer Tables
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- Usage
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- Figure 72: Listening to terrestrial, satellite, and internet radio, and pre-recorded music, by race/Hispanic origin, October 2013
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- Figure 73: Streaming music services used in past week, by gender, October 2013
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- Figure 74: Streaming music services used in past week, by race/Hispanic origin, October 2013
- Location of usage
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- Figure 75: Home usage of terrestrial, satellite, and internet radio, and personally owned music, by gender, October 2013
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- Figure 76: Use of satellite, terrestrial, and internet radio, and personally owned music, at gyms or while exercising, by household income, October 2013
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- Figure 77: Use of terrestrial, satellite, and internet radio, and personally owned music at gyms or while exercising, by race/Hispanic origin, October 2013
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- Figure 78: In-car usage of terrestrial, satellite, and internet radio, and personally owned music, by race/Hispanic origin, October 2013
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- Figure 79: At work usage of terrestrial, satellite, and internet radio, and personally owned music, by race/Hispanic origin, October 2013
- Response to ads
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- Figure 80: Clicking on ads seen on internet radio stations, by household income, October 2013
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- Figure 81: Response to ads heard on internet radio, by time spent listening to music in past week, October 2013
- Smartphone ownership
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- Figure 82: Smartphone ownership, by OS, by age, November 2012-June 2013
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- Figure 83: Smartphone ownership, by OS, by race/Hispanic origin, November 2012-June 2013
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- Figure 84: Smartphone ownership, by OS, by household income, November 2012-June 2013
- Attitudes to personalized radio
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- Figure 85: Attitudes to personalized radio, by household income, October 2013
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- Figure 86: Attitudes to personalized radio, by race/Hispanic origin, October 2013
- Social media
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- Figure 87: Social media usage in relation to internet radio, by household income, October 2013
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- Figure 88: Social media usage in relation to internet radio, by race/Hispanic origin, October 2013
- Competitive context
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- Figure 89: Attitudes to streaming content, by race/Hispanic origin, November 2012-June 2013
- Music purchasing
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- Figure 90: Purchasing music heard on internet radio, by household income, October 2013
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- Figure 91: Purchasing music heard on internet radio, by race/Hispanic origin, October 2013
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- Figure 92: Incidence of purchasing CDs and music downloads, by race/Hispanic origin, November 2012-June 2013
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- Figure 93: Number of CDs purchased in past 12 months, by age, November 2012-June 2013
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- Figure 94: Number of CDs purchased in past 12 months, by household income, November 2012-June 2013
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- Figure 95: Number of CDs purchased in past 12 months, by race/Hispanic origin, November 2012-June 2013
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- Figure 96: Number of downloads purchased in past 12 months, by race/Hispanic origin, November 2012-June 2013
- Limitations on skipping
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- Figure 97: Terminating listening sessions because of skipping limitations, by time spent listening to music in past week, October 2013
Appendix – Trade Associations
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