Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The Market
- Streaming growth drives industry income growth of 15% in 2017
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- Figure 1: UK music industry income from physical, digital and streaming, 2012-22
- Audio streams made up over half of music consumption in 2017
- Key Players
- More than eight in 10 free streamers use YouTube
- Nearly six in 10 paid streamers use Spotify Premium
- Voice-controlled speakers give greater focus to audio quality
- Spotify adds new visual layer to podcasts with Spotlight
- The consumer
- Four in 10 people listen to a free music streaming service
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- Figure 2: Use of music formats, February 2018
- The radio is the most popular device for listening to music
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- Figure 3: Device used to listen to music, February 2018
- Opinion divided on how helpful voice control is
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- Figure 4: Attitudes towards smart speakers, February 2018
- People want more music diversity from streaming services
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- Figure 5: Attitudes towards music streaming services, February 2018
- Adverts in the middle of podcasts are less likely to be skipped
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- Figure 6: Podcast advertising, February 2018
- What we think
Issues and Insights
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- Voice-controlled speakers set to have a big impact on music habits
- The facts
- The implications
- Sound quality to become more important for smart speakers
- Voice control alters how people discover music
- Greater investment in podcasts
- The facts
- Consumers value podcast content
- Podcast advertising becomes more sophisticated
The Market – What You Need to Know
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- Streaming growth drives industry income growth of 15% in 2017
- Audio streams made up over half of music consumption in 2017
- Voice-controlled smart speakers to impact music consumption
- New rules introduced for Official Singles Charts to help new artists
- YouTube under pressure from music industry
Market Size and Forecast
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- Streaming growth drives industry income growth of 15% in 2017
- Physical market value falls less than expected
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- Figure 7: UK music industry income from physical, digital and streaming, 2012-22
- Figure 8: UK music industry income from physical, digital and streaming, 2012-22
- Segment forecasts
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- Figure 9: UK music industry income from streaming services, 2012-22
- Figure 10: UK music industry income from physical sales, 2012-22
- Figure 11: UK music industry income from digital sales, 2012-22
- Forecast methodology
Market Segmentation
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- Streaming continues to drive market forwards but physical remains resilient
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- Figure 12: Music industry income, 2012-16
- Audio streams grow to account for over half the music market
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- Figure 13: Volume of UK audio streams, 2014-17
- The vinyl revival is not slowing down
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- Figure 14: Vinyl album sales, 2013-17
Market Drivers
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- Voice-controlled smart speakers to impact music consumption
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- Figure 15: Ownership and interest in smart speakers, April 2018
- YouTube under pressure from music industry
- New rules introduced for Official Singles Charts to help new artists
Key Players – What You Need to Know
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- More than eight in 10 free streamers use YouTube
- Nearly six in 10 paid streamers use Spotify Premium
- Spotify adds new visual layer to podcasts with Spotlight
- Spotify launches new self-serve ad platform
- Voice-controlled speakers give greater focus to audio quality
- YouTube reportedly to launch new music streaming service in US
Streaming Services – Market Share
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- More than eight in 10 free streamers use YouTube
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- Figure 16: Use of free music streaming services, February 2018
- Nearly six in 10 paid streamers use Spotify Premium
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- Figure 17: Use of paid-for music streaming service, February 2018
Launch Activity and Innovation
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- Spotify adds new visual layer to podcasts with Spotlight
- Spotify launches new self-serve ad platform
- Voice-controlled speakers put greater focus on audio quality
- Spotify might be looking to introduce its own smart speaker
- Spotify introduces RISE to help find new stars
- Apple introduces new Analytics dashboard for artists
- YouTube reportedly to launch new music streaming service in US
Brand Research – Streaming Services
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- Brand map
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- Figure 18: Attitudes towards and usage of selected brands, April 2018
- Key brand metrics
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- Figure 19: Key metrics for selected brands, April 2018
- Brand attitudes: Spotify is viewed as offering more value for money
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- Figure 20: Attitudes, by brand, April 2018
- Brand personality: Apple Music perceived as more unethical and exclusive
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- Figure 21: Brand personality – macro image, April 2018
- Spotify is the most appealing streaming service
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- Figure 22: Brand personality – micro image, April 2018
- Brand analysis
- Amazon Prime Music is viewed as reliable and accessible
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- Figure 23: User profile of Amazon Prime Music, April 2018
- Spotify has the strongest and most positive brand image
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- Figure 24: User profile of Spotify, April 2018
- People consider Apple Music to be expensive
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- Figure 25: User profile of Apple Music, April 2018
- Google Play doesn’t stand out
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- Figure 26: User profile of Google Play Music, April 2018
The Consumer – What You Need to Know
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- Four in 10 listen to a free music streaming service
- The radio is the most popular device for listening to music
- Many question the sound quality of smart speakers
- People want more music diversity from streaming services
- One in three listen to podcasts
- Many are willing to pay for podcasts
Use of Music Formats
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- Four in 10 listen to a free music streaming service
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- Figure 27: Use of music formats, February 2018
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- Figure 28: Use of music formats, by age, February 2018
- Over one in four still buy CDs
- Younger people are still downloading music
Use of Streaming Services
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- YouTube is the most popular streaming service
- Spotify looks to boost advertising revenue
- One in four free streamers listen to BBC iPlayer Radio
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- Figure 29: Use of free music streaming services, February 2018
- Over half of paid-for streamers use Spotify Premium
- Services look for ways of offering exclusivity
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- Figure 30: Use of paid-for music streaming service, February 2018
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- Figure 31: Repertoire of paid-for music streaming services used, February 2018
Devices Used to Listen to Audio
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- The radio is the most popular device for listening to music
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- Figure 32: Device used to listen to music, February 2018
- One in 10 use a smart speaker to listen to music
- Two in three 16-24-year-olds listen to music on mobile devices
- One in three have listened to a podcast in the last three months
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- Figure 33: Devices used to listen to podcasts, February 2018
Attitudes towards Smart Speakers
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- Apple looks to cater for audiophiles
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- Figure 34: Attitudes towards smart speakers, February 2018
- Opinion divided on how helpful voice control is
- Voice control to change discovery on streaming services
- Collective vs individual listening
- Removing the visual aspect of discovery could narrow music requests
Attitudes towards Music Streaming Services
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- People want more music diversity from streaming services
- People struggle to remember music details when searching
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- Figure 35: Attitudes towards music streaming services, February 2018
- One in four want to see their friends’ music
Podcast Payment and Advertising
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- Podcasts show financial potential
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- Figure 36: Willingness to pay for podcasts, February 2018
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- Figure 37: Willingness to pay for podcasts, by age, February 2018
- Figure 38: Willingness to pay for podcasts, by household income, February 2018
- Adverts in the middle of podcasts are less likely to be skipped
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- Figure 39: Podcast advertising, February 2018
- One in four often hear the same products advertised across podcasts
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecasts
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- Figure 40: UK music industry income from physical, digital and streaming, 2017-22
- Figure 41: UK music industry income from physical, 2017-22
- Figure 42: UK music industry income from digital, 2017-22
- Figure 43: UK music industry income from streaming, 2017-22
- Forecast methodology
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