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Music and Video Streaming - UK - April 2016

Music and Video Streaming - UK - April 2016

“Original content has become a powerful selling point for video streaming services. Music streaming services, which are looking to distinguish themselves within an increasingly competitive marketplace, are beginning to similarly explore the option of adding exclusive video content.”

– Rebecca McGrath, Media Analyst

This report looks at the following areas:

Increasingly competitive music streaming market looks to video
Personalisation of recommendations and prices


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Music subscription revenue increases by 49% in 2015
Figure 1: Forecast value of subscriptions within the UK music streaming market, 2010-20
Video subscriptions to more than double by 2020
Figure 2: Forecast value of subscriptions within the UK video streaming market, 2010-20
Spotify still leads the way in paid streaming but others not far behind
Figure 3: Paid-for music streaming, December 2015
Younger people are interested in personalised recommendations
Figure 4: Features on music streaming, December 2015
Limited interest in non-music-related content
Figure 5: Content on music streaming, December 2015
Netflix is used by nearly a third of video streamers
Figure 6: Paid-for video streaming, December 2015
People want recent releases
Figure 7: Video streaming content, December 2015
ISSUES & INSIGHTS
Increasingly competitive music streaming market looks to video
Personalisation of recommendations and prices
THE MARKET
What you need to know
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
Music subscription revenue increases by 49% in 2015
Figure 8: Forecast value of subscriptions within the UK music streaming market, 2010-20
Video subscriptions to more than double by 2020
Figure 9: Forecast value of subscriptions within the UK video streaming market, 2010-20
Forecast methodology
Market drivers
Subscriptions make up over quarter of video market
Figure 10: Video market revenue, 2015
Streaming is driving the music industry forward
Figure 11: Breakdown of consumer spending on music formats, 2013-15
Faster broadband required as streaming demands rise
Figure 12: UK residential broadband connections, by headline speed, November 2010-15
Mobile infrastructure improves to keep up with data-hungry streamers
Figure 13: 4G coverage in the UK, by mobile network provider, 2014 and 2015
Smart TV ownership increases further
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
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
Spotify’s dominance under threat despite subscriber increase
Figure 15: Music subscription revenues, Spotify and total industry, 2012-14
Netflix subscriptions continue to boom
Figure 16: Number of Netflix subscribers, worldwide Q4 2003-Q4 2015
Brand research – Music streaming
What you need to know
Brand map
Figure 17: Attitudes towards and usage of selected brands, January 2016
Key brand metrics
Figure 18: Key metrics for selected brands, January 2016
Figure 19: Attitudes, by brand, January 2016
Figure 20: Brand personality – macro image, January 2016
Figure 21: Brand personality – micro image, January 2016
Brand analysis
Figure 22: User profile of Spotify, January 2016
Figure 23: User profile of Google Play Music, January 2016
Figure 24: User profile of Apple Music, January 2016
Figure 25: User profile of Deezer, January 2016
Brand research – Video streaming
What you need to know
Brand map
Figure 26: Attitudes towards and usage of selected brands, January 2016
Key brand metrics
Figure 27: Key metrics for selected brands, January 2016
Figure 28: Attitudes, by brand, January 2016
Figure 29: Brand personality – macro image, January 2016
Netflix is considered cutting edge
Figure 30: Brand personality – micro image, January 2016
Brand analysis
Figure 31: User profile of Netflix, January 2016
Figure 32: User profile of Amazon Prime Instant Video, January 2016
Figure 33: User profile of NOW TV, January 2016
Figure 34: User profile of Blinkbox/TalkTalk TV Store, January 2016
Launch activity and innovation
Major new music services shake up market
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
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
YouTube dominates the free market
Figure 35: Free music streaming, December 2015
Spotify still leads the way in paid streaming but others not far behind
Figure 36: Paid-for music streaming, December 2015
Younger people are prepared to pay
Figure 37: Paid-for music streaming, by age, December 2015
Most people are using multiple streaming services
Figure 38: Repertoire of music streaming services, December 2015
Music streaming devices
The computer is still the primary device for streaming music
Figure 39: Devices for streaming music, December 2015
16-24s are most likely to use their smartphone
Figure 40: Use of smartphone to stream music, by age, December 2015
Music streaming features
A fifth are interested in a time-based payment option
Figure 41: Features on music streaming, December 2015
Younger people are more interested in personalised recommendations
More men would like a genre-specific service
Figure 42: Interest in a streaming service that focuses on one genre of music, by gender, December 2015
Music streaming content
Videos of performances are a welcome addition
Limited interest in non-music-related content
Figure 43: Content on music streaming, December 2015
Men and women interested in different content
Video Streaming Services
Over three quarters use YouTube
Figure 44: Free video streaming, December 2015
Netflix is used by nearly a third of video streamers
Figure 45: Paid-for video streaming, December 2015
Most video streamers use multiple services
Figure 46: Repertoire of video streaming services, December 2015
Video streaming devices
People are most likely to stream video via a computer
Figure 47: Devices for video streaming, December 2105
NOW TV is more likely to be viewed on a mobile device
Figure 48: Devices used to watch video streaming services, by paid-for video streaming service used, December 2015
Video streaming content and features
Recent releases the main priority
Figure 49: Video streaming content, December 2015
Men want live sports
Figure 50: Video streaming content, any rank, by gender, December 2015
Over a quarter are interested in a tiered payment service based on hours
Figure 51: Video streaming features, December 2015
APPENDIX
Data sources, abbreviations and supporting information
Abbreviations
Consumer research methodology
Market size and forecast
Market forecasts
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
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

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