The Classical Music Market: Streaming’s Next Genre?

MIDiA-Research-Idagio-Classical-Music-Market_Image-724x1024Classical music has long been viewed by many as a rarified genre that stands apart from other forms of music. While there is clearly something in that, something new is happening to the classical market: streaming is opening up a new, more diverse base of fans. Many of these are finding new entry points to classical music, such as hearing piano concertos on Relaxing Piano playlists. These new audiences bring with them new expectations about what classical music listening should be like and they present a major new opportunity for the classical market.

I am excited to announce the release of a report on the global classical music market that covers this concept and much, much more. MIDiA researched and wrote the report on behalf of classical music streaming service Idagio. (To be clear, this report is an objective and independent analysis of the classical market, not one of those ‘white papers’ that exists to champion the virtues of the client’s proposition.)

With that important caveat out of the way, I strongly recommend you download the full report for free here. It is packed with exclusive new consumer data that presents a unique view of classical music consumers and how they are engaging with streaming. The survey was fielded in the US, UK, Mexico, Sweden, Denmark, Austria, Germany and South Korea.

A fill list of contents is at the bottom of this post.

Here are a couple of paragraphs from the report that helps contextualise why classical music is gaining new relevance in today’s streaming world:

Classical music fans are a crucial music consumer segment that is too often overlooked in the mainstream of the music industry, and especially within the streaming market. However, the clear picture that has emerged in this report is one of a large and diverse group of consumers that include large volumes of mainstream music consumers who are also fans of other genres. The traditional image of Classical fans of only being older, traditionally minded and musically aloof does not stand up to scrutiny. Instead we see a group of people that are increasingly both youthful and digitally savvy, and that have wide tastes that go beyond just Classical music. This though, is not just a reflection of the diversity of these consumers but also of the way in which streaming is helping Classical music find a new, younger generation of fans.

Alongside this, streaming services risk getting locked in a race to the musical middle-ground in order to build the biggest audiences possible, with record labels and producers rushing to fill this overcrowded space with increasingly formulaic playlist-optimized songs. Songs that like fresh fruit are designed for quick, immediate consumption, not for longevity. This vicious circle of song optimization / playlist optimization may be the path of least resistance but it can ultimately lead to an unsatisfying overall music experience. Classical music provides an antidote to the algorithm-defined mainstream, and of the status update driven chaotic maelstrom that is digital life. Now we are starting to see the signs of a new generation of Classical music fans searching for a refreshing, reassuring alternative to the tumult and homogeneity of mainstream.

Go download the free report! (No registration required)

classical music report contents

Black Friday Offer: Free MIDiA VR Report

VR report coverShamelessly jumping on the Black Friday bandwagon we have a great offer for you: sign up to the MIDiA weekly research briefing newsletter today and get a free 18 page VR report: ‘The State Of The VR Nation’.

Just go the MIDiA blog homepage and add your email address in the box ‘SUBSCRIBE TO OUR WEEKLY BRIEFING’ and click ‘Subscribe’.

The weekly research digest brings you all of our latest blog analyses on what’s new in music, video, mobile and paid content.

Here’s the introduction to the report:

Virtual Reality’s Path to Mainstream Entertainment

Virtual Reality’s renaissance has an edge on other technologies: romance. Experiences in virtual reality are being evangelised less as entertainment than as a new era of humanity, giving users previously inconceivable levels of exploration in a safe and inconsequential environment. However, this celebratory narrative deserves some context: 2015 saw the entire global VR market generate $189 million, far removed from Facebook’s $2 billion acquisition of Oculus VR in 2014. Although tech hype cycles are nothing new, with investment and development still so heavily skewed towards the hardware and limited on the content side, there are several flaws in VR’s route to market, not least an overestimation of consumer readiness. The VR industry has fallen into a predicament over its heavy investment in hardware whilst failing to offer enough experiences to make the technology a meaningful proposition for its early audiences.

Companies Mentioned In The Report: Facebook, Fox Innovation Lab, Google, HTC, MelodyVR, MIT, Oculus VR, PlayStation, Samsung, Sega, Skybound Entertainment, Sony, Valve, Wevr, Alphabet, Apple, Facebook, HTC, MTV, Samsung, Snapchat, Universal, YouTube 8i, AltspaceVR, Amazon, Apple, Baobab Studios, Facebook, Felix & Paul Studios, Google, HTC, Jaunt, Lucid Sight, Next VR, Nokia, Oculus, Ogilvy and Mather, RELOAD STUDIOS, Samsung, Sony, Space VR, Take-Two Interactive, Valve, The Virtual Reality Company, VCR, Visionary VR, Walt Disney, Wevr, Within

And just a reminder: we’re hiring. Come join our fast growing team!

Decoding the Digital Music Consumer: New Report

Today MIDiA Consulting published a report: Decoding the Digital Music Consumer. The report deep dives into the music activity of UK consumers leveraging data from a brand new MIDiA consumer survey.

The music industry is in a peculiar spot: digital is where all the momentum is and yet it remains but a small part of the equation. Across the globe digital accounted for just 25% of recorded music revenues outside of the UK and US in 2012 but even in the UK, one of the most digital markets, traditional consumption modes still dominate (see figure one).

survey1

These are some of the key findings from the report:

  • Radio and CD still outshine all digital music activities other than online music video
  • 10 years after the launch of the iTunes Store, music download buyer penetration is just 14%, though album purchasing is now just as widespread as single track buying
  • Music video is the only digital music activity that has gone mainstream so far
  • Streaming adoption is still relatively niche and paid subscriptions stand at just 4% penetration
  • Pricing, commitment issues and trepidation all act as barriers to consumer adoption of subscription services
  • The CD still reigns even for digital consumers, with 55% of digital music buyers and 45% of music subscribers buying CDs at least monthly
  • Non-Network Piracy is replacing P2P as the music sharing choice of Digital Natives, with Digital Immigrants still clinging to P2P
  • A quarter of music subscribers are also pirates
  • There is a music subscriber gender divide: 63% of subscribers are 
male
  • Subscription service churn is going to become a major component of the digital market: 46% of the entire subscriber audience have either churned or plan to churn

survey2

Churn from subscription services will become an increasingly important part of the digital music landscape (see figure two).   Looking at the entire base of consumers that have either previously been subscribers, currently are subscribers or plan to become one, 44% have either already churned or plan to do so. Just 32% are current subscribers that intend to remain so.  This base of churned music subscribers poses a key challenge for the digital marketplace: these consumers have tasted unlimited on-demand music without ads, on their phones, but are now going cold turkey. The question is where they will get their next fix? If it is not from subscribing to another service then the illegal sector beckons. This is the challenge that the music industry must meet over the next couple of years. It must ensure that these consumers either reengage with full fat music services or instead are nudged towards lower price point alternatives.

The report is available free of charge to MIDiA clients and subscribers to Music Industry Blog.  If you are not a subscriber to the blog but would like to subscribe please add your email address to the email subscription field on the right hand side of the blog home page.  If you would like to learn more about how MIDiA can help you with your digital music strategy please email info AT midiaconsulting DOT COM or visit our website here www.midiaconsulting.com  You can also find all previous free reports for download here: https://musicindustryblog.wordpress.com/free-reports/