Kantar: YouTube Music tops Q2 ’24 streaming adoption

Kantar, the global marketing data and analytics company, has released its latest Entertainment on Demand (EoD) report, highlighting shifts in the global music streaming industry. The data points to a significant uptick in music service adoption, increasingly fueled by the rise of podcasts and audiobooks alongside traditional music streaming.

In the second quarter of 2024, YouTube Music emerged as the most adopted streaming service, reflecting a trend towards more diverse audio content consumption. Despite this growth, the report identifies substantial untapped potential among non-streamers and older demographics, signaling room for further expansion in the industry.

Kantar’s report offers a comprehensive overview of the digital music-on-demand market across major regions, including Great Britain, the USA, Australia, Germany, Spain, and France, from April to June 2024.

  • YouTube Music topped the list as the #1 adopted music streaming service in Q2 2024.
  • A notable 85% of individuals who currently don’t stream music expressed interest in doing so, highlighting a significant growth opportunity. The main barrier to adoption? A reluctance to pay regular subscription fees, with 42% citing this as their primary concern. However, value for money remains the top driver behind new premium subscriptions across all demographics.
  • Gen Z stands out as an exception, where the key factor in choosing a streaming platform is alignment with what their friends are using.
  • Free trials continue to be the most influential factor in attracting new premium subscribers, but recommendations from friends and family play an equally crucial role.

The EoD report emphasized YouTube’s strong influence on music discovery, a trend that has continued into 2024, propelling YouTube Music and YouTube Music Premium to the forefront of the streaming market.

While YouTube Music leads in adoption, Spotify also maintained momentum, registering a 2-percentage point increase in market penetration year-on-year among all music streamers.

Craig Armer, Global Strategic Insight Director at Kantar, commented on the shifting landscape: “The music streaming industry is evolving with the growing diversity of audio content, from podcasts to audiobooks. There’s a significant opportunity to engage older demographics, who, despite being less involved, show considerable potential.

“The challenge lies in convincing these audiences of the value of paid subscriptions. With many non-streamers interested in music but hesitant due to costs, services should focus on leveraging recommendations from satisfied users to attract this untapped audience.

“As YouTube Music continues to lead in adoption and Spotify sustains its growth, the ability to deliver personalized content for both younger and older listeners will be key. Younger audiences are increasingly guided by algorithm-driven recommendations, while older listeners tend to rely on pre-made playlists.”

Future expansion in the music streaming market will hinge on targeting specific age groups and regions. For example, 51% of Gen Z in Great Britain currently have a premium subscription, while in the US, the 55+ age group presents a promising opportunity, with only a third currently subscribed to a service.

The study also found that Spotify is the preferred choice among new 55+ users, driven largely by recommendations from friends and family. Although older listeners are often harder to convert and typically favor traditional formats like radio, they can become loyal subscribers once convinced, often through recommendations and free trials.

As the music streaming industry has expanded over the past year, content variety and value for money have been critical in attracting new subscribers. In Q2 2024, 14% of new premium subscribers were drawn in by the wide range of podcasts, and 11% by exclusive content.

Interest in podcasts and audiobooks continues to grow, with 29% of streamers now considering podcasts an essential part of their lives, up from 26% last year.

All markets tracked by Kantar reported an increase in the average number of paid services per person, with the United States leading this growth. In contrast, Great Britain showed the lowest rate, where the average user subscribes to just 1.5 services. In the US, the typical premium consumer subscribes to one more service than their British counterparts.

Total
0
Shares
Previous Post

Neha Kakkar signs with Dharma Cornerstone Agency

Next Post

Anime Music booms on Spotify with 395% growth, powered by Crunchyroll collaboration

Related Posts