Category Archives for "Music Industry Stats"
We keep reading about Spotify having more paid subscribers than just about any other service at 51 or so million, but it looks like Apple Music is not only catching up, but surpassing the service in many areas. A new survey from the media measurement company Verto Analytics actually puts Apple Music at the top of the list for monthly unique users in March, with Spotify coming in third behind Pandora. The study looked at adults over 18 only in the United States.
Apple Music is now reported to have 32 million subscribers, which is a huge jump up from the 20 million that was reported only at the beginning of the year. What’s more, it boasts almost 41 million unique monthly users in the US in March, which topped all other streaming services. What was interesting is that the top stickiness (the time spent on a listening session) went to Spotify at 25%, while it also topped out the monthly sessions per user at 51. Amazon Music came in at a strong 22% stickiness for second place, followed by Pandora at 21% and Apple Music at 19%.
Interestingly enough, Tidal was nowhere to be found among the leaders of this chart, despite having more publicity than just about any company not named Spotify.
What this shows is that while Spotify may have the worldwide lead in subscriptions, Apple is catching up fast, and Amazon Music may be even faster (with a reported 65 million subscribers thanks to its Prime service and Echo speakers). The disadvantage for Spotify is that its up against some deep pockets in Apple, Amazon and even Google (which came in at #9 on the chart below). These companies aren’t that concerned with making money from music as it’s not their core business, which makes them very difficult to compete against over the long haul.
The prediction here is that by the end of the year Apple Music and Spotify will be about equal in paid subscribers, but look for Apple to take the lead next year after Spotify goes public and its investors cash out.
In record label executive offices across the U.S. there’s rejoicing as the latest RIAA numbers show a double digit increase in revenue for the first time in almost 20 years. The latest figures show that the recorded music market in 2016 brought in $7.7 billion, up a bit more 11% over the previous year. And guess what? Despite what the many naysayers had predicted, the growth is all because of streaming.
Streaming contributed $3.9 billion to the total revenue in 2016, which was up 69% from the year before. And get this – it now makes up 51% of the recorded music business, which is the first time it’s crossed that mark in the U.S. There’s even more good news though. There were 431.74 billion (with a B) streams counted by Nielsen Music (which includes video and audio on-demand streams), and the average per-stream rate went up to $0.0072. To put that number in perspective, that number last year was $0.00517, and in 2014 it was $0.00666.
One of the downsides of the streaming numbers is that fact that YouTube no longer reports all of its streams to Nielsen Music. Last year it began to report streaming data on artists whose music has over 1,000 views a day. That means that a lot of the streaming data is going unreported, something that’s bound to bring about some gnashing of teeth in label board rooms.
As you would expect, CD sales are now rapidly declining to the point where just 99.4 million full-length CDs were sold in the United States. Although that was worth $1.2 billion, which is nothing to sneeze at, it still marked the first time since 1986 that fewer than 100 million were sold. Top that off with the fact that downloads were down 22% last year to $1.8 billion, and you can see that it’s a good thing that streaming has picked up the slack.
The numbers show that the vinyl fad looks like it has peaked though, as sales revenue grew just 3.5% to around $430 million, based on a 1.8% growth of unit sales to 17.2 million. To put that into perspective, vinyl growth averaged 38 percent a year from 2012 through 2015, according to Nielsen Music numbers.
So overall, the music business is now picking up steam in the right direction. Hopefully the growth trend will continue.
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.