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Future music-forum-2012-keynote-mark-mulligan
 

Future music-forum-2012-keynote-mark-mulligan

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    Future music-forum-2012-keynote-mark-mulligan Future music-forum-2012-keynote-mark-mulligan Presentation Transcript

    • Digital Crossroads: Time for Digital Music’s Plan B? Agenda 1. Just how far have we come? 2. Assessing the impact of streaming 3. Innovation and the iPad Analogue music technology businessMark Mulligan – September 2012 music industry blog
    • Digital Crossroads: Time for Digital Music’s Plan B? Agenda 1. Just how far have we come? 2. Assessing the impact of streaming 3. Innovation and the iPad Analogue music technology businessMark Mulligan – September 2012 music industry blog
    • Janus was the god of transitions and beginnings Streaming music services have one eye on the past and one on the music future technology businessMark Mulligan – September 2012 music industry blog
    • Streaming Services are Reaching a Tipping Point 58% Streaming users listen to more music because of streaming 47% Streaming users that are aged under 24 (59% are male) 12% Consumers discover new artists via streaming services 11 Years 7 Quarters music The time it took The time it took Spotify Rhapsody to gain 1m to gain 1m paying technology paying subscribers subscribers Sources: Industry sources, company numbers and EMI Insights Survey 2011 (UK Only) businessMark Mulligan – September 2012 music industry blog
    • music technology businessMark Mulligan – September 2012 music industry blog
    • Streaming Music is Breaking Out of a YoungMale Early Adopter Skew Streaming Music Penetration by Age Penetration by Gender 50% 50% 45% 47% 46% 45% 45% % of all consumers 40% 40% 39% 35% 38% 35% 35% 35% 30% 30% 32% 31% 29% 25% 25% 20% 20% 23% 15% 15% 10% 10% 5% 0% music 5% Male Female 0% technology 13 to 15 16 to 20 21 to 24 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 Average Source: EMI Insight Data, 2011 businessMark Mulligan – September 2012 music industry blog
    • Across Most Markets More Consumers are Streaming Less Than They Did a Year Prior100% 12% 13% 15% 17% 19% 19% 19% 22% 22% 22% 25% 80% 36% 29% 59% 47% 41% 40% 33% 33% 40% 60% 44% 41% 54% 22% 40% 26% 17% 17% 19% 20% 20% 22% 19% 23% 20% 34% 14% 26% 27% 28% 22% 22% 22% 17% 18% 11% 11% 0% Spain France Denmark UK Average Canada Japan Sweden Norway US Average music Dont know Less About the same More Question Asks: Would you say you do the following more or less compared to 12 months technology ago? (Q25 - Asked from all) Source: EMI Insight Data, 2011 businessMark Mulligan – September 2012 music industry blog
    • Making an Impact: Streaming’s Role in Digital Music music technology business Data source: all data is FY 2011 from the IFPI Recording Industry in Numbers 2012Mark Mulligan – September 2012 music industry blog
    • music technology businessmusic industry blog
    • Facebook Has Been an Adrenaline Injection for Spotify 30.0 22.3 Million 25.0 20.0Million users 15.0 Total Spotify Users 10.0 5.0 - music technology businessMark Mulligan – September 2012 music industry blog
    • Spotify’s US Paid Subscriber Base is Growing Strongly 4.5 4.0 US 1 million paying RoW US subscribers 3.5 c. 0.9m by October? 3.0 Million paying users 2.5 c. 3.6 m 2.0 1.5 1.0 0.5 music 0.0 technology businessMark Mulligan – September 2012 music industry blog
    • Spotify’s Total Users Growth Is Solid But Only Average for Streaming Music Services 35 Spotify 30 Pandora 25 imeem Million users 20 Last.FM 15 10 5 0 music 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 Months from launch of service technology Source: Company reported numbers businessMark Mulligan – September 2012 music industry blog
    • Spotify Relies Upon a Wide Marketing Funnel to Drive Paid Conversions (Millions) 21% 53% 26% music technology Source: Spotify, Facebook, Music Industry Blog estimates businessMark Mulligan – September 2012 music industry blog
    • Digital Crossroads: Time for Digital Music’s Plan B? Agenda 1. Just how far have we come? 2. Assessing the impact of streaming 3. Innovation and the iPad Analogue music technology businessMark Mulligan – September 2012 music industry blog
    • iPad Created An Entire New Product Category by Disrupting Evolutionary PC Product Strategy • The iPad succeeded because it identified & met untapped consumer demand. • It focused on combining what people did on a PC but wanted to be able do on a music portable device, crucially doing it better than a smartphone. • It recognized that the incumbent product (the Netbook) did not achieve this. technology • The iPad went one better though, it actually did some laptop activities (games, magazines etc.) better than on a PC. businessMark Mulligan – September 2012 music industry blog
    • The Music Format Bill Of Rights music technology businessMark Mulligan – September 2012 music industry blog
    • Future Music Formats Must Be: Dynamic Interactive Social Curated music technology businessMark Mulligan – September 2012 music industry blog
    • This is not a strategy….
    • Conclusions • Accelerating physical decline, slowing digital growth and over-concentration of spending is setting the scene for a perfect storm of industry crisis. • Streaming is showing positive early signs. It is too early though to make conclusive judgements about impact on sales or piracy, though albums may need to watch their backs from downloads more than streaming. music • Music industry product strategy needs to find its ‘iPad moment’, and quickly so. technology businessMark Mulligan – September 2012 music industry blog