Let's step away from the industry bubble for a second, shall we? Because a recently-released report by Nielsen shows that most consumers are either unaware or disinterested in audio streaming services, whether paid or free. In fact, amongst all age groups and across both genders, a minority expressed both awareness and interest (and that doesn't count actual usage or subscription commitments).
In fact, outside of twenty-somethings, more than 30 percent of consumers were unaware that these services even existed. And, this was a global canvass, so the list spans everything from Rhapsody, Spotify, we7, Deezer, and Grooveshark.
Actually, that can be viewed as fertile ground, and a juicy awareness challenge. But more worrying is that in every age group under 50, more consumers expressed an awareness of these services - but also a complete disinterest in jumping on board. That result frequently poked past 40 percent.
The complete white paper can be downloaded from the Midem blog here (email registration required).

Comments Closed
nmh Tuesday, March 22, 2011
I already paid for my music, why should I pay someone so I can listen to it online? so I can have instant access to kesha?

@pascalplayaz Tuesday, March 22, 2011
Pascal @ Playaz Hq
This could be good news for the industry

Muckraker Tuesday, March 22, 2011
Thank you for posting this up.
Our internal research showed that the numbers were actually more disparaging (don't fully trust Neilsen numbers). Once we drilled down on the 'why' it made total sense.
1) These points have been brought up before and are not settled: a) Lack of control over the song list experience, b) Lack of integration between owned music and 'subscribed to' music in the same experience (meaning playlists from iTunes owned music playing along subscription services) and c) Lack of a deep enough catalog (I'm not sure if consumers will ever be satisfied with this one)
2) Streaming on Phones is simply not reliable and eats at battery power enormously.
In fact over 48% said they experienced trouble streaming music or video even on a hard connnected computer in the last week. (hiccups, buffering, mis-synced audio)
In my opinion, this is the biggest problem facing music and entertainment today. Even at Music and Tech conferences where these deals are made, wifi doesn't work or is spotty at best. Even at the highest paid Broadband rates, there is throttling, load and buffering problems. Nothing worse than a Video with out of sync audio.
Consumers expect TV and Radio quality (remember those). Turn the channel the picture and auido are there. Turn the dial, crystal clear song. This is not the case with mostly any digital music and/or video service.We can argue about why another time, but one main reason is advertising load scripts.
3) And how about this nugget... it breaks down larger between PC and Mac owners. Pc owners, in general, have far more hardward fails and security flaws than Mac people, which makes a purely digital (cloud or otherwise) experience non-attractive. They still want hardcopies to get them through the 2 weeks their PC is being fixed and the 2 weeks they look to buy the next windows upgraded product.
Not that every band shouldn't be on the subsciption models, but you can count one more to PooPoo the idea of this becoming ubiquitous.

visitor Tuesday, March 22, 2011
When you say "our" internal research, who are you representing?

Muckraker Tuesday, March 22, 2011
Part of my entertianment company does Media Research. We do not do focus groups. We match exact demographics of Facebook (coincidentally the music buying demographic) complimented with trendsetters in the music area and actually talk, tape, visit in home as well as record daily activity. Our users are proprietary and we approach research with a thirst for truth not client response. So we get real, often surprising results that frankly, shock companies.
Examples: We can tell what people are doing with their hands while they play a facebook or casual game. This is information that every FB game developer needs but does not have.
We can tell what percentage of real life users actually click on Mp3 links vs. Youtube links.
We can tell how many users skip, or click out of pre-roll ads on VEVO. We can also gather their next steps. (they search for user uploads on youtube)
We can tell what users illegally (or not) downloaded music and more importantly, why.
Numbers are decieving though, even ours- which is why they are proprietary. We are trying to tip the scales to as close to true on that day as possible. Our efforts are mostly an effort to aid independent musicians, labels and publishers in strategy. As Mark Twain said: "There are three kinds of lies: lies, damned lies, and statistics."

BasV Wednesday, March 23, 2011
TCP/IP was never ment for realtime services like streaming. So that's why having even very broadband connections will still not give you flawless streaming. Maybe IPv6 might solve some of these technicalities in the future.
But culture can also change fast. Look at what has happened with twitter in 5 years...
Cheers !

@ericdavich Tuesday, March 22, 2011
Eric Davich
ah, right - the big picture!

Visitor Tuesday, March 22, 2011
This acts like if streaming services were to make up 20% of revenues that that wouldn't be impressive. Just bizarre.

just wondering Wednesday, March 23, 2011
Revenues for whom?

Brad Tuesday, March 22, 2011
Please tell me you have heard and or tried Rdio. 9.99 a month for all access plus the ability to sync to your mobile device, even AirPlay works on the iPhone. the only issue I have found is AirPlay doesn't work for the desktop app.
I'll still buy my favorite groups...but Rdio is great for test driving albums and it's cheaper than eMusic and streams way better than Rhapsody.

Muckracker Tuesday, March 22, 2011
Of course I have rdio. I want my 9.99 back because it went dark at a party last saturday. Funny thing is, we were having a mixer and sort of showing off some digital tools at the same time. #75minuteFAIL.
I'm not picking on them alone, I know they are in beta. But have you ever had dead air on radio for 75 minutes or TV? How pissed off would you be? I'm in the inudustry and completely get it, but a normal user is probably going to tweet fail and move on.
Look, I'm not saying these services don't have their place, but until there is stability, we can't base our future business efforts on it.

@stugreen Tuesday, March 22, 2011
Stuart Green
Slightly disappointing

@znakit Tuesday, March 22, 2011
Gregory Golebiewski
We need another "the-other-white-meat" ads only for music.

Wolfgang Wednesday, March 23, 2011
Interesting... I read the study, focusing on another issue admittedly. But it kind of mirrors my own feelings - and behaviour. Apart from last.fm, I'm not using any streaming service at all.
Actually, even last.fm I'm only listening to once in a (looooong) while. It's because I'm using it to discover NEW music. This is another important issue in the Nielsen study - people are interested in music discovery. There's simply that much brilliant music out there by artists who are totally unknown, you want some tool to find that music. Everybody got less time at hand, and there's loads of more music to be found.
That's why I want to listen to *my* music, or to new music similar to my taste. That's where the challenge is.

Albert Torres Wednesday, March 23, 2011
Those results depend a lot on where they have been taken. Take for granted that in Spain the result of this research would be totally different, here is been massivelly adopted, the street people already know about it and whoever don't use it is because haven't tried it yet. It is very different a different a streaming on-demand service like Spotify or Deezer than Pandora or Raphsody. The results of Nielsen research makes sense for countries like the USA or Italy where they don't know yet what a free adv supported streaming on-demand service is yet. The massive addoption comes from the on-demand + free-adv-supported, then (if the service is great) people gets hooked and the next step is to pay for added value like mobility, no advertising, or whatever comes next.

GMS Wednesday, March 23, 2011
Lack of awareness and understanding are the reasons for limited uptake. If MOG, Rdio, Rhapsody or any other streaming music service had the marketing dollars of Apple there's no doubt they would be extremely successful.
Consumers, especially the younger generations, simply want their favorite music anytime, anywhere, and on any device. If a streaming service has all the functionality of iTunes, notwithstanding "owning" the files, and you could have immediate, unlimited access to music, who wouldn't pony up $9.99 or less per month...as long as you had access from any device?
I've done my own sampling of about 30 individuals, from 16 yrs old to 45 yrs old, and 75% were unfamiliar, though they've heard the term "streaming music service." None had yet to try a streaming service, but when I showed them MOG's mobile app they were amazed how easy it was to have unlimited access.
It took the cable and satellite industries time to evolve. Let's face it, who would have ever thought we'd "pay" for television access. But, essentially we do. And, every young person today inately knows that when they get their own place of residence (rent or own) cable or satellite hook-up is a priority (and at a premium).

@WAMMusic Wednesday, March 23, 2011
We All Make Music
The music biz INFOGRAPHIC OF DEATH, courtesy of Digital Music News

j-lon Thursday, March 24, 2011
Disinterested = unaffected by self-interest; Not influenced by considerations of personal advantage
Uninterested = arousing little or no interest
Sorry to be the grammar and usage police, but it seems like you are saying that consumers remain "uninterested" in streaming music options not "disinterested" in them.

@QuiddityEnt Thursday, March 24, 2011
Quiddity
Not sure if we agree with this chart on streaming music, but interesting nonetheless

OUR SPONSORS
Follow Us