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Nielsen, Midem Report States The Obvious: Fans Consume Music, But Don’t Pay For It

Posted by on January 13, 2011

Nielsen Music and Midem recently released a new report analyzing music fans’ consumption and interaction with music digitally and through mobile apps within the past 3 months. Their survey findings show that while there are many opportunities to capitalize through multiple channels, there are also many risks. The report highlights how the advancements of new online and mobile technologies provide the industry with great opportunities for exposure. However, they also showcase the one thing that’s been killing the industry over the past decade or so: people aren’t actually paying for music. Here are a few key points Nielsen and Midem make in their latest report:

– Looking at what channels the online audience consume music through the most, 58% claim to consume music by watching music videos through the computer. The report also confirms the industry’s biggest fear: that almost 50% of online users obtain their music from the internet without paying. However, it should be noted that this accounts for both illegal and legal forms of downloading. Either way, it shows that less people are actually purchasing music digitally. In case you need more proof, the report found that neither digitally downloading a full album or a single track reached 20%.

-The report also found that above 20% of online users stream music or watch videos through mobile phones, while exactly 20% download through music apps.

-When looking at how frequently consumers “engage” with music, 48% reportedly access their music regularly through digital tracks on their computer. On the other hand, 30% reportedly listen to music through their mobile phones, and 27% through mp3 devices.

-Taking a closer look at how the online audience consumes music through watching videos, 57% say that they watch music videos on their computer, while only 20% watch videos through their mobile phones. However, the report notes that the number of mobile phone use to watch videos can possibly increase as smart phone’s capabilities have been improving and more people own them.

So the good news is that people are still watching music videos. It’s no surprise that people’s viewing habits are mainly through the computer, seeing as how popular YouTube and Vevo are. The current percentage of people interacting with music and videos through mobile phones also shows strong potential of future growth. While both findings show strong possibilities in providing the music industry more exposure for their acts, it leaves little hope in finding more profit. That, as Nielson’s report claims, is the “catch 22.”

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Categorised in: Digital Media