Table of Contents
Overview
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- Key issues covered in this report
- COVID-19: Market context
- Impact of the January lockdown and the vaccination rollout
- Economic and other assumptions
- Products covered in this Report
Executive Summary
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- Impact of COVID-19 on music and audio
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on music and other audio – CDs, streaming, downloads and podcasts, November, 2020
- The market
- Steady growth in industry income in 2019
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- Figure 2: Forecast of music industry income, 2015-25
- Streaming still dominant driver of music industry income
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- Figure 3: Music industry income by segment, 2015-19
- UK parliament launches inquiry into the economics of music streaming
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- Figure 4: Streaming sites’ revenue payments per stream, 2019
- Increase in ownership of technology devices furthers streaming services’ reach
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- Figure 5: Smartphone ownership by generation, September 2019, June 2020
- Spotify pays $100 million for exclusive licensing of The Joe Rogan Experience as it redefines the future of podcasting
- Google Play Music shuts, paving the way for YouTube Music to expand
- Companies and brands
- Spotify launches new features
- Podcasts and playlists focusing on wellbeing and productivity see spike during lockdown
- Platforms host live streaming of concerts during lockdown
- The consumer
- Small increase in music streaming services during lockdown
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- Figure 6: Use of paid-for music and TV streaming subscriptions, December 2017–2-14 July 2020
- Use of paid-for streaming services climbs nine percentage points since 2018
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- Figure 7: Use of music formats, 2018, 2019, 2020
- YouTube still the dominant way to listen to free music despite losing ground to Spotify
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- Figure 8: Use of free music streaming services, 2018-20
- Spotify still tops paid-for streaming services
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- Figure 9: Use of paid-for music streaming services, 2018, 2019, 2020
- Pop music holds appeal with fans of other genres
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- Figure 10: Genres of music listened to, September 2020
- Smartphone the key device for listening to music
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- Figure 11: Devices used to listen to music, September 2020
- Consumers spend more on vinyl than downloads or CDs
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- Figure 12: Typical monthly spend on physical music formats, September 2020
- Podcasts offer engaged audiences for advertising opportunities
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- Figure 13: Attitudes towards podcasts, September 2020
- More social elements on streaming platforms can increase engagement
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- Figure 14: Interest in new streaming features, September 2020
- Streaming platforms can create branded editorial content to power discovery
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- Figure 15: Attitudes towards music, September 2020
Issues and Insights
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- The physical audio sector can double down on quality
- Online events should continue even as normal trading resumes
- COVID-19 shifts the mood towards wellbeing
- Richer content can drive greater engagement on streaming platforms
- Filling the gap left by the absence of live music
The Market – Key Takeaways
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- Industry income builds on momentum from 2019
- UK parliament launches inquiry into the economics of music streaming
- Pandemic alters listening habits
- Spotify pays $100 million for exclusive licensing of Joe Rogan podcast
- Google Play Music shuts, paving the way for YouTube Music to expand
Market Size and Forecast
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- Music streaming another cog in the at-home entertainment package in 2020
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- Figure 16: Short-, medium- and long-term impact of COVID-19 on music and other audio – CDs, streaming, downloads and podcasts, November, 2020
- Steady growth in industry income in 2019
- Market drivers and assumptions
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- Figure 17: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on November 11)
- Music industry well placed to have a strong 2020 despite COVID-19
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- Figure 18: Forecast of music industry income, 2015-25
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- Figure 19: Music industry income, 2015-25
- Learnings from the last recession
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- Figure 20: Physical pre-recorded music market*, 2003-13
- Segment forecasts
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- Figure 21: Forecast of music industry income from physical formats, 2015-25
- Figure 22: Forecast of music industry income from streaming, 2015-25
- Figure 23: Forecast of music industry income from digital downloads, 2015-25
Market Segmentation
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- Streaming still dominant driver of music industry income
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- Figure 24: Music industry income by segment, 2015-19
- Income from subscriptions continues to drive market
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- Figure 25: Music industry income from streaming services, 2015-2019
- Paid for downloads continue to slide
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- Figure 26: Music industry income from sales of digital downloads, 2014-18
- Physical formats’ niche appeal unlikely to offset momentum of downturn
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- Figure 27: Music industry income from sales of physical music formats, 2014-19
Market Drivers
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- UK parliament launches inquiry into the economics of music streaming
- Services that directly support artists can likely gain in popularity
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- Figure 28: Streaming sites’ revenue payments per stream, 2019
- Increase in ownership of technology devices furthers streaming services’ reach
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- Figure 29: Smartphone ownership by generation, September 2019, June 2020
- Music streaming services see spike due to pandemic
- Spotify pays $100 million for exclusive licensing of The Joe Rogan Experience as it redefines the future of podcasting
- Pursuing diversification through podcasting
- Broader content offerings increase engagement across the board
- Google Play Music shuts, paving the way for YouTube Music to expand
Companies and Brands – Key Takeaways
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- Spotify launches new audio and talk feature
- Podcasts and playlists focusing on wellbeing and productivity see spike during lockdown
- TIDAL streams concerts by Beyoncé, Rihanna and Jay-Z during initial lockdown
- New streaming platform concepts emerge during pandemic
Launch Activity and Innovation
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- Spotify launches new features
- Audio and talk
- Video podcasting
- Podcasts and playlists focusing on wellbeing spike during lockdown
- Music and mindfulness going hand in hand
- Personalised ‘soundscapes’ take advantage of AI
- Playlists emerge to aid at-home working routines
- TIDAL streams concerts by Beyoncé, Rihanna and Jay-Z during initial lockdown
- New streaming platform concepts emerge out of the pandemic
- MC Battle Royale as Fortnite hosts live hip hop
Brand Research
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- Brand map
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- Figure 30: Attitudes towards and usage of selected brands, November 2020
- Key brand metrics
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- Figure 31: Key metrics for selected brands, November 2020
- Brand attitudes: TIDAL is considered the most innovative of brands
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- Figure 32: Attitudes, by brand, November 2020
- Brand personality: YouTube Music is seen as the most accessible of brands
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- Figure 33: Brand personality – macro image, November 2020
- Spotify viewed as the most appealing and reliable of brands
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- Figure 34: Brand personality – micro image, November 2020
- Brand analysis
- Spotify scores highly across the board on all key brand metrics
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- Figure 35: User profile of Spotify, November 2020
- YouTube Music has high level of consumer commitment
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- Figure 36: User profile of YouTube Music, November 2020
- Nine in 10 have heard of Apple Music, yet fewer than three in 10 have ever used the service
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- Figure 37: User profile of Apple Music, November 2020
- Six in 10 have never used or heard of TIDAL
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- Figure 38: User profile of TIDAL, November 2020
- Only 10% are committed to Deezer
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- Figure 39: User profile of Deezer, November 2020
Impact of COVID-19 on Consumer Behaviour
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- Physical music sales suffer in 2020
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- Figure 40: Physical music purchases, December 2017–2-14 July 2020
- Small increase in music streaming services during lockdown
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- Figure 41: Use of paid-for music and TV streaming subscriptions, December 2017–2-14 July 2020
The Consumer – What You Need to Know
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- Use of paid-for streaming services climbs nine percentage points since 2018
- YouTube is the most popular free service but Spotify is top for paid subscriptions
- Pop music holds appeal with fans of other genres
- Smartphone the key device for listening to music
- Consumers spend more on vinyl than downloads or CDs
- Podcasts offer engaged audiences for advertising opportunities
- More social elements on streaming platforms can increase engagement
Music and Audio Listening
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- Use of paid-for streaming services climbs nine percentage points since 2018
- Older generations can have their interest piqued by relevant marketing and communications
- Podcasts can draw in diverse audience
- The CD can endure to cater for collectors and audiophiles
- CDs will need to become more collectable than disposable
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- Figure 42: Use of music formats, 2018, 2019, 2020
- Repertoire of activities show that multiple formats can be a hit with the superfan
- Labels can cater to the superfan
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- Figure 43: More than four audio activities done in the last three months, by selected generations, August 2020
- YouTube still the dominant way to listen to free music despite losing ground to Spotify
- Despite teething troubles BBC Sounds is well-placed to see a resurgence
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- Figure 44: Use of free music streaming services, 2018-20
- Spotify still top of the hit parade of paid-for streaming services
- Platforms offering bundled services well-placed to encourage switching
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- Figure 45: Use of paid-for music streaming services, 2018, 2019, 2020
Genres of Music Listened to
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- Pop music holds appeal with fans of other genres
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- Figure 46: Genres of music listened to, September 2020
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- Figure 47: Genres of music listened to by generation, September 2020
Devices Used to Listen to Music
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- Smartphone the key device for listening to music
- Number of devices used creates many moments for experiencing music
- The radio is still a key way to access audio
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- Figure 48: Devices used to listen to music, September 2020
Spending on Physical Music Formats
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- Consumers spend more on vinyl than downloads or CDs
- Digital downloads need to refocus on being the highest quality audio experience
- Record collectors’ passion makes them a valuable target market
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- Figure 49: Typical monthly spend on physical music formats, September 2020
Attitudes towards Podcasts and Music
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- Podcasts offer engaged audiences for advertising opportunities
- Curated content can cater to curious minds
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- Figure 50: Attitudes towards podcasts, September 2020
- More social elements on streaming platforms can increase engagement
- Streaming sites can do more to support artists and wider support industry
- Streaming platform communities likely to become more social
- Social platforms can incorporate reaction videos to create further fan interaction
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- Figure 51: Interest in new streaming features, September 2020
- Generational differences for physical format preference
- Streaming platforms can create branded editorial content to power discovery
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- Figure 52: Attitudes towards music, September 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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