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Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
Optimising the online music mix - midem-exclusive Nielsen white paper
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Optimising the online music mix - midem-exclusive Nielsen white paper

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The online music mix: with an array of services and music consumption methods available to the consumer, optimising the online mix is a key proposition. In this paper, focusing on online user …

The online music mix: with an array of services and music consumption methods available to the consumer, optimising the online mix is a key proposition. In this paper, focusing on online user behaviour (excluding mobile phone usage), Nielsen will consider: the active reach of audio and video streaming services and other music sites and applications; the audience overlap between different online music services; and demographic segmentation.



This paper builds on the last two papers for MIDEM, in which Nielsen explored music audio and music video streaming services across Europe (UK, France, Spain, Italy and Germany). In these we identified that audio streaming is more popular among the younger users – 18-24 year old and teenagers. Female users are becoming more interested in audio streaming services, a fact that holds most true for UK users. We also discovered that when it comes to music video streaming services, teenagers (aged 13 – 17) and young adults were the most avid users of video streaming websites. Via our research, Nielsen revealed that the higher the engagement with a video through viewing and commenting/liking/favouriting) the higher the sales; although there were a few notable exceptions.



In this paper we find that the online music landscape varies widely across the countries in our survey. On the charts over the next couple of pages, we have grouped together key music sites and other large online players to provide context. The top group of sites is the social media group which includes Facebook, MySpace and Twitter in all countries with a couple of local additions in Germany. Full detail on sites included can be found in the appendix.

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  • 1. November 2011Optimising the online music mix Jean Littolff, Managing DirectorHelena Kosinski, Marketing Manager Nielsen Music
  • 2. Table of Contents1. Introduction2. Methodology3. Key TakeawaysCountry Round Up 4. The UK 5. France 6. Germany 7. Spain 8. Italy9. Audience Composition10. Audience Overlap Analysis11. Conclusion
  • 3. 1. IntroductionThe online music mix: with an array of services and music consumption methods available to the consumer,optimising the online mix is a key proposition. In this paper, focusing on online user behaviour (excludingmobile phone usage), Nielsen will consider: the active reach of audio and video streaming services andother music sites and applications; the audience overlap between different online music services; anddemographic segmentation.This paper builds on the last two papers for MIDEM, in which Nielsen explored music audio and musicvideo streaming services across Europe (UK, France, Spain, Italy and Germany). In these we identified thataudio streaming is more popular among the younger users – 18-24 year old and teenagers. Female usersare becoming more interested in audio streaming services, a fact that holds most true for UK users. We alsodiscovered that when it comes to music video streaming services, teenagers (aged 13 – 17) and youngadults were the most avid users of video streaming websites. Via our research, Nielsen revealed that thehigher the engagement with a video through viewing and commenting/liking/favouriting) the higher thesales; although there were a few notable exceptions.In this paper we find that the online music landscape varies widely across the countries in our survey. Onthe charts over the next couple of pages, we have grouped together key music sites and other large onlineplayers to provide context. The top group of sites is the social media group which includes Facebook,MySpace and Twitter in all countries with a couple of local additions in Germany. Full detail on sitesincluded can be found in the appendix.
  • 4. 2. Nielsen MethodologyOur data source is proprietary metered panels of computer internet users, both at home and at work,across five countries.Users in five countries – the UK, Germany, France, Italy, and Spain – are analysed.Nielsen grouped websites together according to their main purpose: we have eight groups – socialmedia, music sales, music audio streaming, music video streaming, lyrics and music notation websites,music news websites, live music, and illegal download.• The social media group includes websites such as Facebook and Twitter.• Music sales refers to websites on which users can purchase digital music tracks. This group howeveralso includes applications which can be used for listening to music.• Music audio streaming refers to websites and applications that allow users to listen to personalizedradio stations or music on demand, e.g. Last.fm, Spotify, Deezer.• The music video streaming group is composed of websites that host official music videos; it does nottake into account fan-uploaded music videos.• The lyrics and music notation group refers to websites that post song lyrics, lyrics translations, guitartabs and sheet music.• The music news group is made up of websites that provide daily music artist news and information onnew album/single/video releases.• The live music group consists of websites that sell tickets or provide information about upcomingmusic concerts or festivals.• The illegal download group is made up of torrent websites and applications, free illegal mp3 downloadwebsites and peer-to-peer websites and applications.A list of the websites included in each category is provided in the appendix.Nielsen CapabilitiesNielsen provide online metrics to clients across the globe. Data available includes individual site, serviceand application breakdown data. Nielsen provide website metrics including active reach, coverage, timespent, sessions and page views. By further combining this data with demographic breakdown includingage, gender, household income, education and occupation, Nielsen provide our clients withcomprehensive and trusted insights into online behaviours.
  • 5. 3. Key Takeaways- Social Media is widespread, reaching in most analysed countries more than 60% of the audience. It isan anchor of online users’ behaviours.- Online video streaming being accessed by, either close to, or higher than, 1 out of 2 internet users. Itis a critical stream to provoke revenue generation and simultaneously to promote music content. Puremusic video streaming within this category is showing a very decent reach of the internet population.- Music sales sites and apps (including apps which can be used to listen to music) and music audiostreaming usage do reflect strongly what is locally on offer, and habits of music consumption. France ishigh on both sales and audio streaming, Germany and the UK more skewed toward sales, Italy andSpain still struggling against sites where illegal downloads are available.- The overlap between the different sites (metrics of audience which visited multiple music related sites:music sales, music audio streaming sites and music video streaming sites) shows an ecosystem whichhas grown out of its infancy. In some countries, like France, users jump equally from sales sites to videostreaming or audio streaming sites. Users move from video to audio streaming sites in greater numbersthan those progressing the other way. These interchanges promote the multi channel strategy ofpromotion and also encourage methods of revenue generation from this bundle of channels.
  • 6. 4. The UK• Of all the countries in Nielsen’s sample, UK has the highest active reach for music sales websites. Active reach is the percentage of all active unique internet users who visited a website or used an application. Note: the music sales category includes applications which can be used for listening to music.• A variety of music audio streaming services operate in the UK. The most current data from September 2011 shows that such websites and applications reach around 5% of the online population in the UK.• In August and September 2011, 35-49 year old men were the most frequent visitors to audio streaming websites and applications in the UK, visiting on average 2 times per week. They were also the ones who spent the most time on audio streaming platforms.• Music video streaming websites reached almost 15% of the British Internet users in September 2011. The most frequent visitors of music video streaming websites were 18-24 year old men, with 1-2 visits per week. In comparison, users in the other demographic groups visited such websites between 2 and 4 times a month. Active Reach - UK - September 2011 0% 10% 20% 30% 40% 50% 60% 70% Soci a l Medi a YouTube Mus i c Sa l es Mus i c Vi deo Strea mi ng Il l ega l Downl oa d Lyri cs & Nota ti on Mus i c Audi o Strea mi ng Mus i c News Source: UKOM/ Nielsen Li ve Mus i c A list of the websites included in each category is provided in the appendix.
  • 7. 5. France• Music audio streaming services have succeeded in creating a larger user base in France (the active reach of audio streaming services was 13.5% in September 2011). The most frequent visitors to audio streaming websites in August and September 2011 were 25-34 year old men (1 - 2 visits per week).• Music video streaming websites have also been able to attract substantial number of users (16.5% active reach in September 2011). In August and September 2011, French women visited more frequently and spent more time on music video streaming websites than men. However, this difference is rather small. Active Reach - France - September 2011 0% 10% 20% 30% 40% 50% 60% 70% Soci a l Medi a YouTubeMus i c Vi deo Strea mi ng Mus i c Sa l esMus i c Audi o Strea mi ng Il l ega l Downl oa d Mus i c News Lyri cs & Nota ti on Source: Nielsen Li ve Mus i c
  • 8. 6. Germany • Of all music-related websites, music sales websites have the highest online penetration in Germany (12.5% active reach in September 2011). Note: the music sales category includes applications which can be used for listening to music. • Whilst there are a number of music audio streaming services available in Germany, they have yet to attract a large proportion of the online population. • Music video streaming websites are growing in active reach. However, YouTube is not licensed by GEMA for music content. The average German user visited a music video streaming website 2-3 times a month. There is almost no difference between the different demographic groups regarding frequency of visits. • 25-34 year old women were the most frequent visitors to lyrics websites in September 2011, with 5 visits per month. The average user visited 2-3 times a month. Active Reach - Germany - September 2011 0% 10% 20% 30% 40% 50% 60% 70% Soci a l Medi a YouTube Mus i c Sa l es Il l ega l Downl oa dMus i c Vi deo Strea mi ng Lyri cs & NotationMus i c Audi o Strea mi ng Mus i c News Source: Nielsen
  • 9. 7. Spain• Music sales websites have a lower active reach than music audio and video streaming in Spain. Note: the music sales category includes applications which can be used for listening to music.• Music audio streaming services have managed to attract a significant number of the Spanish online users (11% active reach in September 2011). In September 2011, the 18-34 year old men were the most frequent visitors to audio streaming websites and applications. They were also the ones who spent the most time on audio streaming services, followed closely by 35-49 year old men.• Music video streaming is also prominent (19% active reach). The most frequent visitors to music video streaming websites in September 2011 were the 18-24 year olds. Active Reach - Spain - September 2011 0% 10% 20% 30% 40% 50% 60% 70% 80% Social Media YouTube Illegal DownloadMusic Video StreamingMusic Audio Streaming Music Sales Lyrics & Notation Music News Live Music Source: Nielsen
  • 10. 8. Italy• A small number of music audio streaming services are available in Italy.• Of all music-related websites, music video streaming websites have attained the highest active reach – 17% in September 2011. In September 2011, the most frequent visitors to music video streaming websites were the 13-17 year olds, who accessed a video streaming platform once a week.• Lyrics and notation websites are more popular in Italy than in the other European countries in the sample (active reach of 9.7% in September). The average Italian user visited a lyrics website 2-3 times a month in September 2011. Active Reach - Italy - September 2011 0% 10% 20% 30% 40% 50% 60% 70% 80% Soci a l Medi a YouTube Mus i c Vi deo Strea mi ng Il l ega l Downl oa d Mus i c Sa l es Lyri cs & Nota ti on Mus i c News Mus i c Audi o Strea mi ng Li ve Mus i c Source: Nielsen
  • 11. 9. Audience Composition Audience Composition - France - Video StreamingThe reach of services is one key metric, butas important is knowing who the mainconsumers of a particular music service areand how the audience composition of suchservices changes over time. The graphs Sep - 2011 15.9% 30.8% 32.3% 21.0%here provide examples of the shifts that 2 --17occur in the demographic composition of 18-34music websites’ visitors. The 18-24 year oldusers in Spain represented a smaller 35-49proportion of the audience of audio 50+streaming services in September 2011 Sep - 2010 9.0% 30.7% 35.2% 25.2%compared to 2010, whereas the 35+ yearolds have grown as a percentage of the totalvisitors. In France, children and teenagersmade up a larger part of the music video 0% 20% 40% 60% 80% 100%streaming websites’ audience in September2011 compared to September 2010, with theproportion of 35+ year olds declining. Audience Composition - Spain - Audio Streaming Sep - 2011 9.2% 46.3% 31.3% 13.2% 2 --17 18-34 35-49 Sep - 2010 8.2% 53.3% 26.2% 12.2% 50+ 0% 20% 40% 60% 80% 100% Source: Nielsen
  • 12. 10. Audience OverlapThus far in this paper, Nielsen has investigated the relative importance of each type of music-relatedwebsite and application to the online consumer. However, the various online music platforms do notexist in isolation, but rather form an ecosystem of music services. As users are exploring the wide arrayof options to access music content online, there is an overlap between the users of different onlinemusic services.With the hyper-fragmentation of the music industry, the music consumer can choose to access/purchasecontent in many different ways and not just choosing one method. To substantiate this point, Nielsenhas conducted an audience overlap analysis which shows what proportion of the visitors to a particularwebsite also visited another website.For example, in September 2011 50% of the French users who visited any music audio streamingwebsite also went to a music video streaming service and 30% of those who visited an audio streamingservice visited a music sales website. The figure below illustrates the virtuous circle that exists betweenthese different types of online music platforms. Music Sales SitesFrance – September 2011 31% 30% 27% 28% 50% Music Video Music Audio Streaming Services Streaming Services 41% Source: Nielsen
  • 13. 11. ConclusionA variety of music services are available to music consumers, allowing them to rely on more than oneway to access/purchase music. Having looked into these various ways of music consumption, it isimportant to address the question of whether a virtuous circle exists within this complex ecosystem. Thechallenge for the music industry is to maximise the interconnection between the different music sourcesin order to generate more revenue from consumer usage and to capture maximum user attention, asusers are trying to navigate their way through the plethora of services on offer.Comparing music related websites in each of these countries outlines the nuances of the local business.For example, both music video and music audio streaming services are strong in France, while musicsales sites remain strong in the UK and Germany (markets ranked 3rd and 4th in the world sales rankingby the IFPI in 2010). In Spain, where there is a well documented piracy problem, music sales sites havelower reach, but streaming services have become popular.Considering audience overlap, whilst there are notable overlaps between the different online musicservices, a keystone service that links all the other online music platforms, has not emerged. Big namesin online search and social media are seeking to integrate with variety of online music services, andtracking developments in that direction will be interesting to watch.In summary, online music services - digital download sales, audio streaming and video streaming - areall interconnected. They all benefit from the rest of the music industry ecosystem (notably from radio,TV, and concerts) and contribute to it (for example, to live concerts).Increasing marketing impact and maximising the revenue from any source will require continuing torebuild a quite straightforward model in a world which is not simple anymore.
  • 14. AppendixCategory UKSocial Media Facebook, Twitter, MyspaceMusic Video Streaming VEVO, Dailymotion Music, Orange Music, SFR Music, Free Music, Paroles de Clip, MTV Networks Music, Ournia, Stars MusicMusic Audio Streaming Spotify, Deezer, Last.fm, Radionomy, Goom Radiom, Jukebo, MusicMe, Jiwa, Fun Radio, AlloMusic, Musique RadioMusic News Websites such as Great Song, Premiere Musique, Lesinrocks, Pure ChartsMusic Sales iTunes, 7 Digital, eMusic, CD Universe, Beezik, Starzik, Fnac Download, QobuzLyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.comIllegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3SkullLive Music & Gigs Live Nation Network, Songkick, Stereoboard.com, GigWise.com, Virtual Festivals, Music Glue, BandsInTown FranceSocial Media Facebook, Twitter, MyspaceMusic Video Streaming VEVO, Muzu TV, Dailymotion Music, MSN Music, MTV Networks MusicMusic Audio Streaming Spotify, we7, Last.fm, Napster, Jango.com, Mixcloud, ReverbNationMusic News Websites such as BBC Music, RollingStone, Billboard, Drowned in Sound, allmusicMusic Sales iTunes, 7 Digital, eMusic, CD Universe, CD WOW !, Amazon Mp3 Downloader, BeatportLyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.comIllegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3SkullLive Music & Gigs Concerts.fr, infoconcert.fr, ConcertAndCo, Concertlive.fr GermanySocial Media Facebook, Twitter, Myspace, meinVZ, studiVZ, schülerVZMusic Video Streaming Yavido, Dailymotion Music, tape.tv, MTV.com
  • 15. Music Audio Streaming Simfy, Last.fm, Napster, Jango.com, musicstarMusic News e.g. Web.de Musik, GMX Musik, Laut.de, Hiphop.deMusic Sales iTunes, 7 Digital, eMusic, CD Universe, Amazon Mp3 Downloader, tonspion, T-Online MusicloadLyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.comIllegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull SpainSocial Media Facebook, Twitter, MyspaceMusic Video Streaming VEVO, Muzu TV, Dailymotion MusicMusic Audio Streaming Spotify, Last.fm, Rockola.fm, Los40.com, Vagos.fm, Yes.fmMusic News e.g GoEar, Cadenadial.com, HHGroups,JenesaispopMusic Sales iTunes, 7 Digital, eMusic, CD Universe,Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.comIllegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3SkullLive Music & Gigs Nvivo.es, Conciertos 10, Ticketsfera ItalySocial Media Facebook, Twitter, MyspaceMusic Video Streaming VEVO, Muzu TV, Dailymotion Music, Virgilio Musica, MusictoryMusic Audio Streaming Last.fm, Jango.com, DADA, Radionomy, Cubomusica, ReverbNationMusic News Websites such as rockol.it, musicsite.it, italianissima.net, Sonorika.com, ondarock.itMusic Sales iTunes, 7 Digital, eMusic, CD UniverseLyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.comIllegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3SkullLive Music & Gigs Live Nation Network, Concertionline, 5gig.it
  • 16. About the authorNielsen Music is the measurement reference of the music industry, and the market data and research partner of choicefor the music sector. Our local and international teams of research and music experts bring the best set ofcomprehensive, robust and quality insights to our music clients.With Nielsen Music, access, understand and interrogate:• What music is played on radio and music television (airplay monitoring); we are the only respected and official brand forcharts and provide detailed analysis with both local and international coverage.• What is sold (sales tracking); tracking of digital sales globally and physical sales in selected countries.• What is said and by whom; measurement of internet behaviour and consumer generated media (buzz).• What is advertised and where; complete advertising information.• Who your customers are: significant global consumer and ad-hoc research capabilities.Nielsen Music is successfully working with more than 500 clients representing all elements of the music chain: recordcompanies/music labels (majors and independents), radio and TV stations, music publishers, performing rightsorganisations, artists and their management, digital media and services, mobile phone companies, retailers, the videogame/gaming industry, consultancy firms, and the media. Nielsen Music (www.nielsen-music.com) is a division of Nielsen(www.nielsen.com), the leading global market research company.Contact details:Jean Littolff – Managing Director, Nielsen Music International (jean.littolff@nielsen.com)Helena Kosinski – International Marketing Manager, Nielsen Music International (h.kosinski@nielsenmusiccontrol.com)This report is brought to you by midemmidem is the place where music makers, cutting-edge technologies, Contact us: info.midem@reedmidem.combrands & talent come together to enrich the passionate relationship Visit midem’s website - www.midem.combetween people & music, transform audience engagement & formnew business connections. Follow usmidem takes place every 3rd week of January and brings together6,850 professionals from 77 countries. Download midem iPhone App http://road.ie/midem 16

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