How Streaming is Changing the Shape of Music Itself [Part I]

Music Industry Blog

[This is the first of two thought pieces on how streaming is reshaping music from creation to consumption] 

The streaming era has arrived in the music business, but the music business has not yet fully arrived in the streaming era. Labels, publishers, artists, songwriters and managers are all feeling – to differing degrees – the revenue impact of a booming streaming sector. However, few of these streaming migrants are fundamentally reinventing their approach to meet the demands of the new world. A new rule book is needed, and for that we need to know which of today’s trends are the markers for the future. This sort of future gazing requires us to avoid the temptation of looking at the player with the ball, but instead look for who the ball is going to be passed to.

Where we are now

These are changes that represent the start of the…

View original post 618 more words

Advertisements

Tech Majors Market Shares Q2 2018

Music Industry Blog

The tech world has no shortage of acronyms for the big tech companies (GAFA, GAAF, Fang, the four horsemen…). At MIDiA we like to keep things simple, just like the major record labels and major TV studios we call the big four tech companies the Tech Majors. Each quarter the MIDiA team deep dives into the financial filings of Alphabet, Amazon, Apple and Facebook to create our quarterly Tech Majors Market Shares reports. (The Q2 edition is available to clients here.). In these reports we focus on the metrics that are most important for media and content companies. Here are some highlights of our latest report.

tech majors market shares q2 2018 midia research

Tech major Q2 2018 revenue totalled $152.1 billion, down from Q1 2018 – $155.3 billion –  but up 28% from Q2 2017 and 51% from Q2 2016. These growth rates mirror the year-on-year Q1 growths for 2016, 2017 and 2018. The tech…

View original post 342 more words

Emerging Music Markets: Streaming’s Third Wave

Music Industry Blog

MIDiA has just published a new report that deep dives into how streaming is, or in some cases is not, lifting off in emerging markets. The regions we focused on were Russia, the Middle East, sub-Saharan Africa, China and India. The report ‘Emerging Music Markets: Streaming’s Third Wave’ is immediately available to MIDiA subscription clients and can also be purchased, along with its full dataset (including service- and country-level subscriber and free users numbers, as well as consumer data for India and China) on our report store here.

Here are some of the key findings and themes of the report.

emerging markets midia streaming

With streaming growth set to slow in mature western markets by 2019, the next wave of fast growth will come from a mixture of mid-tier markets such as Mexico, Brazil, Japan and Germany. The lower income mid-tier markets such as Brazil and Mexico are so populous that the urban elites…

View original post 321 more words

YouTube And Latin America Are Taking Over The World

Music Industry Blog

Unless you have been on Mars for the last couple of days you will have seen the news that Luis Fonsi’s ‘Despacito’ has become the most streamed track in history with 4.6 billion streams. The figure includes a couple of versions of the track (ie the one include a certain Justin Bieber) but is an impressive tally nonetheless. The landmark raises 2 key trends:

  1. The role of the Latin American market
  2. The role of streaming

Latin Takeover

On the first point, Latin America is becoming a streaming powerhouse. This is a trend we have long anticipated at MIDiA and it is why we have a Latin American analyst (Leo Morel in Brazil) and have been fielding consumer surveys in the region since we launched the company. ‘Despacito’ is not an isolated event. For example, Shakira’s ‘Chantaje’ became the first Latin American Spanish language track to reach 1 billion views…

View original post 623 more words

Change Is Afoot In Music Video

Music Industry Blog

Music video’s two power players are both in the news for strategic resets. On the one hand YouTube has announced that it is merging its YouTube Music and Google Play Music teams while on the other hand Vevo has announced it is postponing the launch of its subscription service in favour of prioritising global expansion. These are both important developments in their own rights but together form part of a changing narrative for music video.

Music video is streaming music’s killer app. According to MIDiA’s latest consumer survey, 45% of consumers watch music videos on YouTube or Vevo every month, while 25% of consumers use YouTube for music every week (more than any of the streaming audio services). So what YouTube and Vevo do has real impact.

YouTube Is Where Google Is Placing Its Music Bets

YouTube’s merging of teams is not a huge surprise. It always appeared overkill…

View original post 653 more words

Quick Take: A Big Deal Benefits Both Sprint And Tidal

Music Industry Blog

News just emerged that SoftBank owned Sprint has acquired a 30% stake in Tidal, reportedly for $200 million against a valuation of $600 million. The valuation seems on the high side, but a big ticket investment works well for both parties.

According to MIDiA’s latest survey data from December 2016, just 2.7% of consumers in the US, UK, Australia and Canada use Tidal weekly (and that’s probably over reporting). Subscriber wise Tidal had 1 million subscribers at the end of 2016, just 1% of the global subscription market. (Although Tidal has published numbers suggesting it is closer to 4 million, those numbers are not commercially active subscribers but instead ‘users’ and trialists). Tidal is a small player in the global streaming subscription market. So why would Sprint / SoftBank a) want to invest in a small player and b) pay so much?

Making A Small Partnership Bigger

As we discussed…

View original post 317 more words

Why Apple Music Matters So Much To Apple

Music Industry Blog

Apple today announced a much anticipated refresh to Apple Music at its WWDC event. Apple Music has found itself at the centre of long running criticism from many parts due to its perceived product weaknesses. This is the bar against which Apple is measured. It has spent years building a well earned reputation for high quality products so its users understandably measure its services by the same standards. Apple Music was a highly ambitious version 1.0 that has since been iterated to iron out user journey kinks. Now today’s feature announcements look set to move Apple Music onto its next stage.

Being An Early Follower Requires Super High Standards

As an early follower rather than a leader Apple always sets itself the challenge of being measured against incumbents that have had years to refine their product offerings. With hardware, Apple normally meets and exceeds those standards. With Apple Music it…

View original post 483 more words