Table of Contents
Executive Summary
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- The market
- Music subscription revenue increases by 49% in 2015
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- Figure 1: Forecast value of subscriptions within the UK music streaming market, 2010-20
- Video subscriptions to more than double by 2020
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- Figure 2: Forecast value of subscriptions within the UK video streaming market, 2010-20
- The consumer
- Spotify still leads the way in paid streaming but others not far behind
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- Figure 3: Paid-for music streaming, December 2015
- Younger people are interested in personalised recommendations
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- Figure 4: Features on music streaming, December 2015
- Limited interest in non-music-related content
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- Figure 5: Content on music streaming, December 2015
- Netflix is used by nearly a third of video streamers
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- Figure 6: Paid-for video streaming, December 2015
- People want recent releases
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- Figure 7: Video streaming content, December 2015
- What we think
Issues and Insights
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- Increasingly competitive music streaming market looks to video
- The facts
- The implications
- Personalisation of recommendations and prices
- The facts
- The implications
- Improved recommendations and playlists
- Tailored payment options
The Market – What You Need to Know
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- Music subscription revenue increases by 49% in 2015
- Video subscriptions to more than double by 2020
- Faster broadband required as streaming demands rise
- Mobile infrastructure improves to keep up with data-hungry streamers
- Musicians cause a stir
- Controversy caused over data use
Market Size and Forecast
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- Music subscription revenue increases by 49% in 2015
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- Figure 8: Forecast value of subscriptions within the UK music streaming market, 2010-20
- Video subscriptions to more than double by 2020
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- Figure 9: Forecast value of subscriptions within the UK video streaming market, 2010-20
- Forecast methodology
Market Drivers
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- Subscriptions make up over quarter of video market
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- Figure 10: Video market revenue, 2015
- Streaming is driving the music industry forward
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- Figure 11: Breakdown of consumer spending on music formats, 2013-15
- Faster broadband required as streaming demands rise
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- Figure 12: UK residential broadband connections, by headline speed, November 2010-15
- Mobile infrastructure improves to keep up with data-hungry streamers
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- Figure 13: 4G coverage in the UK, by mobile network provider, 2014 and 2015
- Smart TV ownership increases further
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- Figure 14: Household ownership of consumer technology products, November and December 2015
- Musicians cause a stir
- Controversy caused over data use
Key Players – What You Need to Know
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- Spotify’s dominance under threat despite subscriber increase
- Netflix subscriptions continue to boom
- Major new music services shake up market
- Music services explore video
- Original films released by video streaming services
Market Share
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- Spotify’s dominance under threat despite subscriber increase
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- Figure 15: Music subscription revenues, Spotify and total industry, 2012-14
- Netflix subscriptions continue to boom
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- Figure 16: Number of Netflix subscribers, worldwide Q4 2003-Q4 2015
Brand Research – Music Streaming
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- What you need to know
- Brand map
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- Figure 17: Attitudes towards and usage of selected brands, January 2016
- Key brand metrics
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- Figure 18: Key metrics for selected brands, January 2016
- Brand attitudes: Apple Music already has a strong reputation
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- Figure 19: Attitudes, by brand, January 2016
- Brand personality: Spotify is viewed as vibrant and fun
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- Figure 20: Brand personality – macro image, January 2016
- Deezer has some negative associations
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- Figure 21: Brand personality – micro image, January 2016
- Brand analysis
- Spotify has a very positive brand image
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- Figure 22: User profile of Spotify, January 2016
- Google Play Music considered flexible
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- Figure 23: User profile of Google Play Music, January 2016
- Apple Music appeals to higher earners
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- Figure 24: User profile of Apple Music, January 2016
- Deezer has some negative perceptions
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- Figure 25: User profile of Deezer, January 2016
Brand Research – Video Streaming
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- What you need to know
- Brand map
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- Figure 26: Attitudes towards and usage of selected brands, January 2016
- Key brand metrics
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- Figure 27: Key metrics for selected brands, January 2016
- Brand attitudes: Netflix is considered worth paying more for
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- Figure 28: Attitudes, by brand, January 2016
- Brand personality: Blinkbox/TalkTalk TV Store has a tired image
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- Figure 29: Brand personality – macro image, January 2016
- Netflix is considered cutting edge
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- Figure 30: Brand personality – micro image, January 2016
- Brand analysis
- Netflix has very positive brand image
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- Figure 31: User profile of Netflix, January 2016
- Amazon Prime Instant Video skews towards high-income streamers
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- Figure 32: User profile of Amazon Prime Instant Video, January 2016
- NOW TV offers flexibility
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- Figure 33: User profile of NOW TV, January 2016
- Rebranding offers chance to alter negative Blinkbox/TalkTalk TV Store image
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- Figure 34: User profile of Blinkbox/TalkTalk TV Store, January 2016
Launch Activity and Innovation
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- Major new music services shake up market
- Apple Music launches
- Tidal attempts to make waves
- Amazon Prime adds music
- YouTube relaunches Music Key as YouTube Red
- Spotify ramps up mobile advertising
- Music services explore video
- Spotify offers personalised weekly playlists
- Original films released by video streaming services
- Netflix launches pay-as-you-go card
- Offline viewing offered by Amazon Prime Instant Video
The Consumer – What You Need to Know
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- YouTube dominates the free music streaming market
- Spotify still leads the way in paid streaming but others not far behind
- The computer is still preferred device for streaming music
- Younger people are more interested in personalised recommendations
- Videos of performances are a welcome addition
- Netflix is used by nearly a third of video streamers
- People want recent releases
- Over a quarter are interested in a tiered payment service
Music Streaming Services
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- YouTube dominates the free market
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- Figure 35: Free music streaming, December 2015
- Spotify still leads the way in paid streaming but others not far behind
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- Figure 36: Paid-for music streaming, December 2015
- Younger people are prepared to pay
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- Figure 37: Paid-for music streaming, by age, December 2015
- Most people are using multiple streaming services
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- Figure 38: Repertoire of music streaming services, December 2015
Music Streaming Devices
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- The computer is still the primary device for streaming music
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- Figure 39: Devices for streaming music, December 2015
- 16-24s are most likely to use their smartphone
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- Figure 40: Use of smartphone to stream music, by age, December 2015
Music Streaming Features
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- A fifth are interested in a time-based payment option
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- Figure 41: Features on music streaming, December 2015
- Younger people are more interested in personalised recommendations
- More men would like a genre-specific service
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- Figure 42: Interest in a streaming service that focuses on one genre of music, by gender, December 2015
Music Streaming Content
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- Videos of performances are a welcome addition
- Limited interest in non-music-related content
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- Figure 43: Content on music streaming, December 2015
- Men and women interested in different content
Video Streaming Services
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- Over three quarters use YouTube
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- Figure 44: Free video streaming, December 2015
- Netflix is used by nearly a third of video streamers
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- Figure 45: Paid-for video streaming, December 2015
- Most video streamers use multiple services
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- Figure 46: Repertoire of video streaming services, December 2015
Video Streaming Devices
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- People are most likely to stream video via a computer
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- Figure 47: Devices for video streaming, December 2015
- NOW TV is more likely to be viewed on a mobile device
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- Figure 48: Devices used to watch video streaming services, by paid-for video streaming service used, December 2015
Video Streaming Content and Features
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- Recent releases the main priority
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- Figure 49: Video streaming content, December 2015
- Men want live sports
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- Figure 50: Video streaming content, any rank, by gender, December 2015
- Over a quarter are interested in a tiered payment service based on hours
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- Figure 51: Video streaming features, December 2015
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market forecasts
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- Figure 52: Value of subscriptions within the UK music streaming market, 2015-20
- Figure 53: Value of subscriptions within the UK video streaming market, 2015-20
- Forecast Methodology
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