The Aficionado Impact How Super Fans Changing Spending Patterns Are Dragging Down Music Sales

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The 20,000 Foot View

Total revenue growth in streaming heartland markets in 2012 and 2013 painted a strong picture for the streaming era.  But by 2014 much of that growth had transformed into decline. Neither trends provide definitive evidence for the case for streaming but both point to the wafer thin margins between growth and decline in the music market.  Consumer behaviour and business models are both under going a transition process of seismic proportions, spearheaded by the Music Aficionados.  These consumers have long been the beating heart of music revenues but the market is becoming ever more dependent upon them and their behaviour will increasingly determine the music revenue outlook.

Key Findings

• Music revenues across seven of the world’s most important music markets declined by        in 2014
• Streaming growth was not enough to offset the combined impact of declining CD and download sales
• The changing spending patterns of Music Aficionados were key to the revenue shift
• Music Aficionados account for just        of consumers but        of all music spending
       of Aficionados stopped buying CDs in 2014 while        reduced download spending
• Aficionados were responsible for        of the total        million lost revenue in 2014
• Streaming increased its revenue share from        to        but the extra revenue was still        million less than the combined lost revenue from CDs and downloads