TechWatch: Streaming Dominated 2016
GroupM, Spotify Delve Into The Minds Of Streamers
On Jan. 2 media investment company GroupM and Spotify released their first "Streaming State Of Mind" report, measuring consumer mobile streaming data from users in Australia, Canada, France, Germany, Sweden, the United Kingdom, and the United States. The report found that 60 percent of streaming is now mobile and "streamers make up almost 50 percent of the online population." GroupM Chief Digital Officer Rob Norman added, "It's time to see streaming as the norm rather than the niche." Streamers tend to be younger, more mobile and more affluent than average. The survey also estimated that targeting streaming ads to detectible consumer activities such as showering, cooking, cleaning, and running errands could produce $220 million in revenue in the next few years.
Subscription Streaming Analytics Suggest Continued Growth
Analytics firm BuzzAngle Music published "2016 U.S. Music Industry Report" on Jan. 3, tracking the phenomenal growth of audio streaming. Music streams jumped more than 82 percent in 2016 for a total of more than 250 billion streams, topping video services' 181 billion streams. Overall music consumption grew at more than 4 percent even as song and album sales both declined. The percentage of total paid streams increased from 62 percent in 2015 to 76 percent in 2016. These stats suggest the greater potential profitability of music streaming with increased average revenue per user.
Top Format Of 2016: On-Demand Music Streams
In more streaming news, on Jan. 5 Nielsen Music released its "2016 U.S. Music Year-End Report" tallying more than 251 billion audio streams and more than 179 billion video streams on demand for a total of 431 billion streams in 2016, surpassing Nielsen Music's digital sales figures for the first time. (This involves multiplication by a conversion factor equating 1,500 streams with a single album.) Nielsen Music found an overall increase in music consumption of 3 percent. Video streams on demand grew more than 7 percent while audio on demand increased by more than 39 percent. Nielsen Entertainment Senior Vice President Analytics & Client Development David Bakula said, "2016 showed us that the landscape is evolving even more quickly than we have seen with other format shifts."