Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast value of music sales, 2008-18
- Figure 2: Forecast value of video sales, 2008-18
- Market factors
- Streaming music services will continue to increase in popularity
- 18 months on, awareness of UV is low and the service risks obsolescence
- Volume digital sales of albums have finally offset losses from volume sales of CDs
- Market innovations
- The consumer
- What music and video do consumers buy?
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- Figure 3: Music and video purchased by consumers, May 2013
- What would incite digital consumers to purchase hard copy media more?
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- Figure 4: Factors that would persuade consumers to purchase hardcopy media, May 2013
- Reasons that have stopped consumers watching digital video
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- Figure 5: Reasons that have prevented consumers interacting with digital video, May 2013
- The impact of digital media on hardcopy purchasing
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- Figure 6: Changes in CD and DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
- Figure 7: Reasons behind the increases in CD or DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 8: Reasons behind the decreases in CD or DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
- Consumer awareness and future usage of UltraViolet
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- Figure 9: Consumer awareness and use of UltraViolet for DVD and Blu-ray, May 2013
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- Figure 10: Consumer awareness and use of UltraViolet for digital download, May 2013
- Figure 11: Consumer interest in using the UV service in future, May 2013
- What we think
Issues in the Market
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- What will happen to video streaming services next?
- What will keep pushing the evolution of digital music?
- What is the future of physical product?
- Is the future of UltraViolet in danger?
Trend Application
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- Trend: Life Hacking
- Trend: Objectify
- Mintel Futures: Generation Next
Market Drivers
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- Key points
- Album sales increase for the first time since 2009
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- Figure 12: Physical and digital album sales, Q1 2013
- Music streaming services increase in number
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- Figure 13: Number of paying Spotify customers, worldwide, March 2011-April 2013
- Pay-what-you-want music retail suffers, but could evolve in the future
- Vinyl sales increase by a fifth in possible retro revival
- 4K’s on the way
- Video on demand providers still chasing content libraries
- UltraViolet still hobbled by poor rollout
- Simultaneous platform release pushed by British Film Institute (BFI)
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- Figure 14: UK cinematic release schedule, as of January 2012
- GAME moves into selling DVDs, though next gen consoles may not be compatible
Who’s Innovating?
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- Key points
- Google Chromecast brings internet video to the big screen
- Amazon AutoRip offers digital copies of purchased CDs
- Pulselocker launches an innovative new take on streaming music for DJs
- Netflix uses ‘big data’ to plan what people will enjoy seeing
Market Size and Forecast
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- Key points
- Market on the cost of cyclical move back to positive growth
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- Figure 15: Forecast value of music sales, 2008-18
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- Figure 16: Forecast value of video sales, 2008-18
- Forecasts
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- Figure 17: Forecast value of music sales, 2008-18
- Figure 18: Forecast value of digital music sales, 2008-18
- Figure 19: Forecast value of physical music sales, 2008-18
- Figure 20: Forecast value of video sales, 2008-18
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- Figure 21: Forecast value of digital video sales, 2008-18
- Figure 22: Forecast value of physical video sales, 2008-18
Market Segmentation
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- Key points
- Single revenue essentially non-existent
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- Figure 23: Music industry income, by segment, 2006-12
- Digital increase partly spurred by device reliance
- DVD still powering video industry
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- Figure 24: Breakdown of video retail revenue, by segment, 2012
Companies and Products
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- Amazon.com, Inc
- Company history
- Company financials
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- Figure 25: Financial performance of Amazon Inc, 2010-12
- Recent activity
- Future strategy/objectives
- HMV
- Company overview
- Company financials
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- Figure 26: Financial performance of the HMV Group, 2010-12*
- Recent activity
- Future strategy
- LOVEFiLM
- Company overview
- Company financials
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- Figure 27: Financial performance of LOVEFiLM UK Limited, 2009-11
- Recent activity
- Future strategy
- Netflix Inc
- Company overview
- Company financials
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- Figure 28: Financial performance of Netflix, Inc, 2010-12
- Recent updates
- Future strategy
- Play Ltd
- Company overview
- Company financials
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- Figure 29: Financial performance of Rakuten, Inc., 2010-12
- Recent activity and future objectives
- Spotify
- Company overview
- Company financials
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- Figure 30: Financial performance of Spotify Ltd., 2009-11
- Recent activity
- Future strategy/objectives
- Tesco
- Company overview
- Company financials
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- Figure 31: Tesco Plc: Group financial performance, 2010/11-2012/13
- Recent activity
- Future strategy
- YouTube, LLC
- Company overview
- Company financials
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- Figure 32: Financial performance of Google, Inc., 2010-12
- Recent activity
- Future strategy
Brand Communication and Promotion
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- Key points
- Digital video contributes over a quarter of all adspend
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- Figure 33: Adspend on music and video, 2009-12
- Music labels dominate music adspend
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- Figure 34: Top five companies advertising CDs, by adspend, 2009-12
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- Figure 35: Top five companies advertising MP3s/Digital music*, by ad-spend, 2011-12
- Digital video streamers dominated by new entrants
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- Figure 36: Top five companies advertising DVDs and Blu-ray, by ad-spend, 2009-12
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- Figure 37: Top 5 companies advertising digital video, by ad-spend, 2012
What Music and Video do Consumers Buy?
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- Key points
- Blu-ray still has a limited audience
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- Figure 38: Music and video purchased by consumers, May 2013
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- Figure 39: Consumer purchase of music, video, DVD and Blu-ray, by age, May 2013
- Men more likely to purchase video content
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- Figure 40: Purchase of hardcopy and digital video, by gender, May 2013
- Rental of digital films much more common at highest incomes
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- Figure 41: Purchase of digital film or TV content in the last three months, by gross annual household income, May 2013
- Digital music has yet to follow CD demographics
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- Figure 42: Purchase of CDs, digital albums and streaming music services in the last three months, by age, May 2013
- Desire for backed-up film does not stretch to Blu-ray
What Would Encourage Digital Consumers To Purchase Hard Copy Media More?
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- Key points
- Cheaper content would draw consumers to physical media
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- Figure 43: Factors that would persuade consumers to purchase hardcopy music or video, May 2013
- Over half would buy physical version if it came with a digital version
- Industry concerns about streaming seem unfounded
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- Figure 44: Purchase of video media by all consumers, and by consumers who have purchased a subscription to video streaming sites in the last three months, May 2013
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- Figure 45: Purchase of music media by all consumers, and consumers who have purchased a subscription to music streaming sites in the last three months, May 2013
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- Figure 46: Interest in a premium box as an incentive to purchase more hardcopy media, by all consumers and consumers who have used a streaming service in the last three months, May 2013
Factors That Have Prevented Consumers Watching Digital Video
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- Key points
- Smart TVs may push digital video usage
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- Figure 47: Reasons that have prevented consumers interacting with digital video, May 2013
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- Figure 48: Volume sales of 3D televisions and internet-connected televisions, 2010 and 2011
- Increased incidences of cloud lockers may not reassure those worried about losing files
- Some change will come alongside infrastructure improvements
- A fifth of those who say there’s no content are using streaming sites
Purchase of Hardcopy Media After Introduction to Digital Media
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- Key points
- Physical video proving slightly more resilient than music
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- Figure 49: Changes in CD and DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
- Money one simple motivating factor in more purchases
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- Figure 50: Reasons behind the increases in CD or DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
- Use of digital as discovery services relatively high
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- Figure 51: Consumers who purchase more physical media after discovering the digital equivalents, and then buying hardcopy either for themselves or family/friends, May 2013
- Cost the primary driver behind decreased purchases
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- Figure 52: Reasons behind the decreases in CD or DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 53: Retail Prices Index against wage growth of regular pay, March 2007 to March 2013
Consumer Awareness and Future Usage of UltraViolet
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- Key points
- After 18 months, seven in ten have never heard of UV
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- Figure 54: Consumer awareness and use of UV for DVD and Blu-ray, May 2013
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- Figure 55: Consumer awareness and use of UV for digital downloads, May 2013
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- Figure 56: Consumers who have purchased a DVD/Blu-ray with the UV logo on it, and added it to the online service, by age, May 2013
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- Figure 57: Consumers who have purchased a DVD/Blu-ray with the UV logo on it and knew what it meant, but have never used the online service, by age, May 2013
- Those with experience significantly more likely to be interested in future use
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- Figure 58: How interested are consumers in using the UV service in future, May 2013
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- Figure 59: Interest in using the UV service in future, by consumers’ current usage of UV for DVD and Blu-ray, May 2013
- Parents of young children interested in UV
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- Figure 60: Interest in using the UV scheme in future, by presence and age of children in the household, May 2013
- Newer technology more likely to spur interest
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- Figure 61: Consumers who have any interest in using the UV scheme in the future, by technology ownership, May 2013
Appendix – What Music and Video do Consumers Buy?
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- Figure 62: Music and video purchased by consumers, May 2013
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- Figure 63: Music and video purchased by consumers, by music purchased by consumers, May 2013
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- Figure 64: Music and video purchased by consumers, by video purchased by consumers, May 2013
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- Figure 65: Music and video purchased by consumers, by streaming service used by consumers, May 2013
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- Figure 66: Consumers who purchased music, by demographics, May 2013
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- Figure 67: Consumers who purchased video, by demographics, May 2013
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- Figure 68: Consumers who used a streaming service, by demographics, May 2013
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- Figure 69: Consumers who purchased a DVD disc, by demographics, May 2013
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- Figure 70: Consumers who purchased a Blu-ray disc, by demographics, May 2013
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- Figure 71: Consumers who purchased a DVD/Blu-ray box set, by demographics, May 2013
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- Figure 72: Consumers who purchased a CD single, by demographics, May 2013
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- Figure 73: Consumers who purchased a CD album, by demographics, May 2013
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- Figure 74: Consumers who purchased a digital single, by demographics, May 2013
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- Figure 75: Consumers who purchased a digital album, by demographics, May 2013
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- Figure 76: Consumers who purchased a Digital video download to keep on a device, by demographics, May 2013
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- Figure 77: Consumers who rented a digital film that expired after watching it, by demographics, May 2013
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- Figure 78: Consumers who purchased a subscription to a streaming music service, by demographics, May 2013
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- Figure 79: Consumers who purchased a subscription to a streaming video service, by demographics, May 2013
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- Figure 80: Consumers who purchased a vinyl record, by demographics, May 2013
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Appendix – What Would Encourage Digital Consumers To Purchase Hard Copy Media More?
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- Figure 81: Factors that would push consumers to purchase digital media, May 2013
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- Figure 82: Music and video purchased by consumers, by likelihood of exclusive, original artwork on the cover or included as an insert to push consumers to purchase physical media, May 2013
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- Figure 83: Music and video purchased by consumers, by likelihood of an exclusive interview with the cast or artist to push consumers to purchase physical media, May 2013
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- Figure 84: Music and video purchased by consumers, by likelihood of exclusive additional material to push consumers to purchase physical media, May 2013
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- Figure 85: Music and video purchased by consumers, by likelihood of a box made of quality material rather than plastic to push consumers to purchase physical media, May 2013
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- Figure 86: Music and video purchased by consumers, by likelihood of an earlier release date than the digital version to push consumers to purchase physical media, May 2013
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- Figure 87: Music and video purchased by consumers, by likelihood of a cheaper price than the digital version to push consumers to purchase physical media, May 2013
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- Figure 88: Music and video purchased by consumers, by likelihood of a chance to win a trip, prize or incentive to push consumers to purchase physical media, May 2013
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- Figure 89: Music and video purchased by consumers, by likelihood of if the content were stocked by more shops near the consumer to push consumers to purchase physical media, May 2013
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- Figure 90: Music and video purchased by consumers, by likelihood of the physical version also including a digital version in the cost to push consumers to purchase physical media, May 2013
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- Figure 91: Likelihood of exclusive original artwork on the cover or included as an insert to make people buy physical content, by demographics, May 2013
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- Figure 92: Likelihood of an exclusive interview with the cast or artist to make people buy physical content, by demographics, May 2013
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- Figure 93: Likelihood of exclusive additional material, by demographics to make people buy physical content, May 2013
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- Figure 94: Likelihood of a box made of quality material rather than plastic to make people buy physical content, by demographics, May 2013
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- Figure 95: Likelihood of an earlier release date than the digital version to make people buy physical content, by demographics, May 2013
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- Figure 96: Likelihood of a cheaper price than the digital version to make people buy physical content, by demographics, May 2013
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- Figure 97: Likelihood of a chance to win a trip, prize or incentive to make people buy physical content, by demographics, May 2013
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- Figure 98: Likelihood of the product being stocked by more shops near me to make people buy physical content, by demographics, May 2013
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- Figure 99: Likelihood of the physical version including a digital version in the cost, by demographics, May 2013
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Appendix – Consumer Purchase of Hardcopy Media After Introduction to Digital Media
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- Figure 100: Changes in CD and DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 101: Changes in CD purchasing habits since the discovery and purchase of digital content, by changes in DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 102: Changes in DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, by changes in CD purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 103: Changes in CD purchasing habits since the discovery and purchase of digital content, by demographics, May 2013
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- Figure 104: Changes in DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 105: Reasons behind decreases in CD and DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 106: Most popular reasons behind decreases in CD purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 107: Next most popular reasons behind decreases in CD purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 108: Most popular reasons behind decreases in DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 109: Next most popular reasons behind decreases in DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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- Figure 110: Reasons behind increases in CD and DVD/Blu-ray purchasing habits since the discovery and purchase of digital content, May 2013
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Appendix – Factors That Have Prevented Consumers Watching Digital Video
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- Figure 111: Reasons that have stopped people interacting with digital video, May 2013
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- Figure 112: Reasons that have stopped people interacting with digital video, by most popular reasons that have stopped people interacting with digital video, May 2013
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- Figure 113: Reasons that have stopped people interacting with digital video, by next most popular reasons that have stopped people interacting with digital video, May 2013
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- Figure 114: Most popular reasons that have stopped people interacting with digital video, by demographics, May 2013
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- Figure 115: Next most popular reasons that have stopped people interacting with digital video, by demographics, May 2013
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Appendix – Consumer Awareness and Future Usage of UltraViolet
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- Figure 116: Consumer awareness of and use of UV for DVD disc and Blu-ray, May 2013
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- Figure 117: Consumer awareness and use of UV for digital downloads, May 2013
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- Figure 118: Consumer awareness and use of UV, by consumer purchase of music and video, May 2013
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- Figure 119: Consumer awareness and use of UV, by consumer purchase of streaming services and DVD, May 2013
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- Figure 120: Consumer awareness of and use of UV, by consumer purchase of Blu-ray disc and DVD/Blu-ray box set, May 2013
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- Figure 121: Consumer awareness of and use of UV, by consumer purchase of CD single and CD album, May 2013
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- Figure 122: Consumer awareness of and use of UV, by consumer purchase of digital single and digital albums, May 2013
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- Figure 123: Consumer awareness of and use of UV, by consumer purchase of digital video download to keep on a device and rental of a digital film that expired after watching it, May 2013
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- Figure 124: Consumer awareness of and use of UV, by consumer purchase of subscription to a streaming music service and consumer purchase of subscription to a streaming video service, May 2013
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- Figure 125: Consumer awareness of and use of UV, by consumer purchase of vinyl record, May 2013
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- Figure 126: Consumer awareness and use of ultraviolet for DVD/Blu-ray, by demographics, May 2013
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- Figure 127: Consumer awareness and use of ultraviolet for digital downloads, by demographics, May 2013
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- Figure 128: Likely future use of UV, May 2013
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- Figure 129: Likely future use of UV, by music and video purchased by consumers, May 2013
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- Figure 130: Likely future use of UV, by use of a streaming service or purchase of a disc by consumers, May 2013
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- Figure 131: Likely future use of UV, by Blu-ray disc and dvd/Blu-ray box set purchased by consumers, May 2013
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- Figure 132: Likely future use of UV, by CD single and CD album purchased by consumers, May 2013
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- Figure 133: Likely future use of UV, by digital single and digital album purchased by consumers, May 2013
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- Figure 134: Likely future use of UV, by digital video download to keep on a device and rented a digital film that expired after watching it purchased by consumers, May 2013
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- Figure 135: Likely future use of UV, by subscription to a streaming music service and subscription to a streaming video service purchased by consumers, May 2013
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- Figure 136: Likely future use of UV, by vinyl record purchased by consumers, May 2013
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- Figure 137: Likely future use of UV, by most popular reasons that have stopped people interacting with digital video, May 2013
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- Figure 138: Likely future use of UV, by next most popular reasons that have stopped people interacting with digital video, May 2013
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- Figure 139: Likely future use of UV, by demographics, May 2013
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