95% of Music Fans Don’t Pay for Streaming…

5percentpaystreaming

…from slide 5 of Nielsen’s US-based data presentation at EDMbiz Conference & Expo in Las Vegas last month.  In the same deck, Nielsen showed that just 3-cents of every dollar spent by music fans goes to a music subscription.

11 Responses

  1. Me

    And what percent of these people would just go back to terrestrial radio if the free services started charging?

    Reply
  2. Anonymous

    Outside of Pandora and Spotify, the rest doesn’t even matter. No one in the world uses Sony unlimited or Xbox music streaming apart from a couple of die-hards geeks. 99% of people don’t even know they exist.
    So the truth is that 33% of music fans actually pay for streaming, and hopefully with Apple Music a lot more.

    Reply
    • Dale Ramsey

      Wow! I like your “new” math. Just dismiss the facts you don’t like and cherry pick the data you want to include and say “the rest don’t matter”. Is there a credibility problem here?

      Reply
    • Gabe Hizer

      I think the chart is showing that 33% of those that use, e.g., Spotify, pay for streaming on Spotify. Not 33% of everyone in the world.

      Reply
    • Sarah

      I don’t think they’re contradictory.

      Here, the claim is about the percentage of people who currently pay.

      In your linked article, the claim is different: “The study revealed that 3 out of 4 college students (77 percent) found some feature that would motivate them to pay for a premium music streaming service compared to 46 percent of overall streaming users.”

      That is, 3/4 would pay if the service offered “some feature” that they found worth the money.

      So, the difference is what’s happening now vs. what could happen if streaming services were modified according to the preferences of consumers.

      In another quote from the article:
      “The data shows that price isn’t necessarily the barrier,” Rapolla said. “However, given that many students are satisfied with the music they can get from the free, ad-supported options, and so many have come to rely on video streaming services to get their music, the value-proposition of premium streaming services becomes imperative to communicate. Free is a price point that needs to strategically and carefully co-exist with other price points.”

      Which is exactly what I’ve been saying all along: the problem is fundamentally not about free vs. paid, it’s about paying attention to what consumers want and value – and then giving it to them in a way they love.

      People pay for shit all the time. They’ll pay for music – if you, like most other successful businesses, start listening and responding to their demands. The music industry got away with basically dictating terms to consumers for a very long time; that’s great but it’s just not acceptable in the current market, and it’s taking a long time for the industry to adjust its thinking. There’s still a lot of money in music, but not for people who are holding onto outdated approaches and business models.

      Reply
  3. agraham999

    I would point out one teenie tiny thing…

    China markets are in turmoil…Europe also having issues…if the economy takes a bit of a hit and slows down, the first thing that’s gonna be cut is spending and that spending will be on ads first. So YouTube, Spotify, and all the other ad funded platforms are going to feel a pinch and that means that all the media companies that put all their eggs in the ad based business are also going to be hurting.

    Freemium at that point is done.

    Reply
    • agraham999

      So much money saved…what are you going to do with that $120?

      Reply
  4. Rickshaw

    NEWSFLASH: 100% of music fans don’t pay for terrestrial radio.

    Reply

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