Category Archives for "Music Industry Stats"
When we think online audience engagement, we usually think of views or streams. There’s a lot more to it than that though, as this infographic from Statista shows how industry insiders evaluate true engagement.
As you can see, Shares are the #1 most valuable engagement element, closely followed by the actual amount of time users dwell on a piece. The number of comments is also high on the list, but page views and page visitors less so, mostly because many can be quick bounces that leave after a few seconds.
The whole idea is to post content that makes users want to watch or read all the way through, then share with their friends and maybe even leave a comment. While this can’t be done with every post, the more you do it, the more likely that you’ll have an energized following.
You will find more statistics at Statista
If you look closely, streaming is teaching us all some marketing lessons, according to analytics service Next Big Sound (now owned by Pandora), a company that looks at social, streaming and event data as well as the interaction between an artist and a fan. While many look at it as just a way to get their music to the public, there’s actually a lot more to it than that. Here’s what the company found.
1. Streaming platforms provide a path to niche audiences
When you’re trying to reach a specific demographic, streaming music platforms coupled with social media channels provide the most direct path. For example, according to the report, “latin artists now account for one-third of the most popular artists on YouTube. Half of the top 20 artists on Pandora are most popular with 25- to 34-year-old women.” Streaming, along with social media, allows you to specifically target the group that you’re interested in reaching.
2. Underground EDM and hip-hop fans are the most engaged
Some of the biggest top 40 artists may have larger followings, but that doesn’t mean they’re the most engaged. Artists like Vinny Cha$e, Marshmello, and Logic haven’t even sniffed radio or the Top 40 but have extremely strong audiences, in some cases more loyal than the superstars.
3. People still listen to older hits
Believe it or not, in America people are is still listening to bands like Nickelback—a lot. On Pandora, legacy rock artists like Journey and the Eagles perform just as well as Katy Perry and Kanye West.
4. Some musical genres resonate more with listeners
If you look to the Top 40 as a barometer for what’s popular, you’d come to a wrong conclusion as you’d probably get the idea that pop or country ruled. On Pandora, 60% of the top artists are hip-hop artists, compared to just 15% on the top 40.
5. Emerging artists can be social influencers too
Once again, it’s easy to think that Beyonce or Katy Perry rule because they seem to dominate the streaming and social networks but that’s not the case. Young electro pop artist Halsey, for instance, has a follower growth on Twitter that outranks the Top 40 artists like Iggy Azalea, Adele, Justin Timberlake, and Britney Spears.
The bottom line is that we tend to think that the world revolves around music’s 1 percenters, but that’s not the case at all. Maybe in radio and on the Top 40, but not across all streaming networks, which gives hope to indie artists everywhere that are trying to improve their marketing .
A recent look at a day in the life of YouTube by Pexeso is extremely illuminating. First of all, it’s not as music-centric as it was previously, with only 5% of its videos now dedicated to music. Those amounted to 11% of total views, which comes in 4th behind gaming, entertainment, and people and blogs. Another eye-opening stat is that more than 93% of the videos are in English, and that the 3 major labels rank 2, 3 and 4 among the number of take-down notices issued.
Here’s an overview of the data. You can find a very nice infographic here.
Brief overview of statistics of 1 YouTube day:
What happens to videos after they’re uploaded?
Any perceptions of YouTube as a platform that’s dominated by music are shattered by this study. Indeed, video does account for 74% of all Internet traffic, but music is just a small piece of it.
Rarely does one chart say so much about how an industry goes as does this one from Fortune. It’s the revenue generated by the recorded music business over the last 40+ years, and it shows the staggering loses that it suffered with the onset of digital music, as well as how the industry has responded to the incorporation of each new music delivery technology.
As you can see, back in the late 70s the industry was fairly healthy in that vinyl sales where at their highest, supported by the first somewhat portable format (in your car, at least), the 8 track tape.
As we get into the 80s the CD takes over, bolstered at least for a time by cassette sales, and it reaches a peak around 2001. This peak is far beyond what the industry had seen before, or since, by almost a factor of 2. Much of this had to do with the fact that the prices for its products were also the highest they’d ever been.
In around 2007 we see that downloads peak in revenue, but the industry is still mostly supported by CD sales, even though they’re declining at a rapid pace, a reaction by consumers to the high prices.
By the end of 2015 CDs are still selling, but at only a fraction of their previous peak, while streaming is increasing at a rapid rate.
If we were to look at an extended chart at the end of 2016, we’ll see that streaming has an even greater growth than what’s seen here, with the general health of the music business revenue-wise beginning to return.
While it’s unlikely that the industry will see anything like the halcyon days of 1999-2001 again (unless a new hit physical format is created), at least it’s growing again. For the first time in a long time, there’s optimism in the air, although you wouldn’t know it from this chart.
Japan is a pretty small country compared to the United States, but when it comes to the music business in has a big lead in at least one category – retail music stores. In what may be a startling revelation to some, Japan currently has around 6,000 music stores while the US only has 1900, with that number falling every week.
The fact of the matter is that Japan has a CD based economy, as 78% of sales come from the round shiny discs. The US, on the other hand, is down to around 39% of its total music revenue coming from the CD, which is still larger than most of us think, but it’s a figure that continues to fall fast.
So why does Japan still love the CD so much? For one thing, even though Japan has a big digital economy in general, record labels and consumers have resisted digital music to this point (it’s only 8% of total revenue). This has more to do with the culture of Japan than anything else, as most Japanese prefer the tangible aspect of the CD and view it more as a piece of artist merchandise than a music delivery system. It’s more about helping the artists they love than listening to the music.
Another thing is that in Japan, CDs sell for between $23 and $28 and aren’t discounted, thanks to a long-standing law that sets the minimum retail price. The country also has a thriving CD rental business, something that never caught on in the US and was fought vigorously by the major labels. Japanese labels look at rentals as an opportunity to get consumers into the buying mindset, which has proved to be a strategy that has worked. That said, the rental business, why still large, is decreasing.
All this has lead to Japan becoming the second largest music economy in the world behind the US. This does seem rather artificial however, and one has to wonder what will happen should streaming actually catch on there.
One thing’s for sure, for everyone who longs for the way it was in the old days of music, Japan’s the one place on earth where it’s still like that.
The music industry has always operated under the premise that music content made up about 40% of YouTube’s traffic, a figure that has bothered everyone considering how little revenue it’s generated as a result. No comes data from Pexeso showing that figure may be way off.
The company found that music-related content on YouTube amount to just 4.3% of the the service’s total traffic. In contrast, gaming-related content accounts for 33.4% of the total, entertainment-focused content has an 18.9% chunk, and bloggers, and YouTube personalities have a 14.3% of the pie. .
What’s more, YouTube itself says that music is only worth 2.5% of its traffic and users spend only an hour a month watching music videos!
That said, there’s a lot of new YouTube data that’s both interesting and a little scary as well.
What happens to videos after they’re uploaded? That’s even more interesting.
I’m still a little leery of this data because of the big disparity from what we’ve used in the past. Although it’s enough to change my mind, I’m still looking for confirmation from another source just to be sure that music isn’t a big part of YouTube anymore.
Although vinyl doesn’t contribute all that much to the bottom line of the music business, it’s still a hot trend and growing at a pretty good rate. That said, a new study in the UK has found that vinyl buyers there are distinctly different from those in the US.
The study by YouGov found that most buyers in the UK are men between the ages of 45 to 54, while in the US, most buyers were under 34. In fact, in the UK Millennial buyers weren’t able to afford vinyl even if they wanted to, while in the US, many of the same age bought the vinyl even if they didn’t own a turntable.
That said, there are buyers like that in the UK as well, as 50% who purchased an album had yet to listen to it a month later, while 41% own a turntable yet never use it, and 7% don’t own turntable.
It turns out that many vinyl buyers are reconstructing their music collections, having sold off their CDs in favor of downloads in 1998 or 99. Obviously, that format isn’t nearly as satisfying as many thought it would be at the time, so the the move to vinyl shouldn’t come as a surprise, if you can afford it.
Most vinyl buyers are avid concert goers and make it a point to support their favorite acts, according to the study. Most also condemn music piracy, although that’s less of an issue these days than in the past.
Perhaps the most depressing part of the study found that most UK vinyl record buyers are lonely, and I guess staying at home listening to your record collection attributes to that. After all, it’s not the most social of daily events, which could be why the album is in dire straights these days as more and more people gravitate to single song consumption.
The numbers in total are staggering. To date, there are roughly 2 billion total videos on YouTube that have been watched a total of 39 trillion times, totaling 196 trillion minutes (or 400 million years) of time spent, according to Bernstein Research. What might be most interesting is that out of billions of videos, viewership tends to be intensely concentrated on the top 1% of YouTube channels, and they’ve accounted for 93% of all the platform’s views since its inception.
That means that nearly 3 trillion views went to everyone else, and that’s still a huge number, just in case you’re worrying about getting run over by top creators. Remember that a trillion is 1,000 billion, and a billion is 1,000 millions, which puts that figure a little more into perspective. In other words, there are still plenty of views to go around when it comes to artists and bands.
While Facebook looks like it’s threatening YouTube for the video crown, most analysts are still betting on the later to come out on top. The reason? It’s all about the advertising, and YouTube is far superior in how it handles the pre-roll ads, giving advertisers more bang for their buck, especially when it comes to the top 1% creators.
And don’t forget, although it may be small, YouTube does pay at least a small royalty, and since the company is under fire from a variety of music-related associations and labels, it’s more than likely that revenue is going to rise in the future.
That said, you probably won’t ever get rich on YouTube alone unless you manage to crack that top 1%, but if you keep the purpose of being on the platform in perspective (it’s all about distribution and exposure of your music and your brand), then the money becomes a secondary issue. While you can’t take your eyes off the money and expect to stay in business, the music, and the passion for it, always comes first.
YouTube is capable of making people stars, and while that happens to exceptional content creators, most of them are not music artists. One of the reasons that artists don’t fall into the YouTube star category is that their general mindset is still set in the past. Here are the 4 places were artists go wrong on YouTube, which leads to far less success on the platform than they’re capable of.
Artists and bands have a love/hate relationship with YouTube but the fact of the matter is that it’s still one of the most effective ways of getting your music out to both fans and non-fans alike, and growing an audience. That said, the techniques that worked in the past are no longer valid. Luckily, there are some very good models to look at for guidance, but few of them are from the music business.
If you’re a music fan or musician on the move, you probably want to know what the music scene is like in the various cities across the U.S. ValuePenguin set out to determine the best cities in the country for music fans by compiling 15 different data points (most of which aren’t specified) into 3 different categories. What the survey determined is fairly surprising. Here are the top 20 music cities in 2016, according to the study.
Although the Nashville area at #1 isn’t much of a surprise, Honolulu at #2, Madison at #4, Albany at #6 and Pittsburgh at #9 are. More surprising is the fact that Austin, San Francisco, Portland and Asheville, all with seemingly robust music scenes, didn’t rank higher.
Here are the bottom 20 cities according to the study.
Most of these are small populace areas, but it’s interesting that there are 4 city areas from California on the list.
Also part of the study was a look at the number of radio stations per population density providing discovery of new music. It should be noted that New York and Los Angeles didn’t appear in the top 5, despite have 428 stations between them.
Again this is very surprising since none of the top 5 cities appear in the top 40 best music cities (Champaign ranks #45).
Once again, the methodology of the study wasn’t detailed, so there may be factors that made the list lean one way or another. That said, it’s interesting to bust some myths on what we consider to be strong music towns, and be pleasantly surprised to find others that are thriving. Either way, there are more music fans in more places than you think, so never assume that a city doesn’t have it’s own scene. It may be much more robust than you would ever think.
Check out the website to find your city’s rank here.