musicwatch — eight shades of grey: a consumer perspective on music

Eight Shades of Grey A consumer perspective on music

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Gating

Exclusives

Windowing

Piracy

Sound Quality

Ownership

Our Customers

Affinity

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Perhaps the biggest rogues

& thieves, though, are us.

Give us something right now

& we’ll take it.

Give us something for free

& we’ll take that too.

Give us something for free right now

& we’ll think that

life just couldn’t be any better.

4 …cnet’s Chris Matyszczyk

120

50

70 5

6%

9% 11%

Windowing Exclusives Gating

Incentive To Pay For Streaming (All Free Streamers)

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14% 19%

28%

Windowing Exclusives Gating

Incentive To Pay For Streaming (Could be Incented to Pay)

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23%

57%

All Free Streamers Inclined to Pay

Complete Degradation As Incentive To Pay For Streaming

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Access Like idea of paid subscription

Discovery Unlimited Songs

No Ads

Lower Fees

Free Trial Worth Paying

Repeatability

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There’s an entire generation of people- and I work with college aged people- that believe

***** is free and has always been free.

There needs to be a re-education that says, “If you want more *****, especially from

people whose work you really like, you have to pay for it. Because if you don’t, then we

can’t make more.”

There’s an entire generation of people- and I work with college aged people- that believe

porn is free and has always been free.

There needs to be a re-education that says, “If you want more porn, especially from

people whose work you really like, you have to pay for it. Because if you don’t, then we

can’t make more.”

Tristin Taormina, performer, director & educator

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29

20 18

DL Free Songs From Mobile App

DL from P2P Streamripped

Number of Free Music Acquirers: 2014 (M)

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Sound quality: Alignment between

what people value,

what they experience

& what they’ll pay for

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49% 48%

71%

Highest quality sound format is important

Most of my listening is through headphones/earbuds

Quality of music on mobile devices good enough

Stream on Android/iOS Phone, Tablet, iPod

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49% 48%

71%

Highest quality sound format is important

Most of my listening is through headphones/earbuds

Quality of music on mobile devices good enough

Stream on Android/iOS Phone, Tablet, iPod

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In a world of access, what can we give the music fan that they can

possess, cherish, collect and ultimately value?

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56%

42%

CD or DDL Buyers Streamers

It is still important to own the CD or Digital File

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If I see another report by a millennial about millennials I’m

going to get a baseball bat

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Silent, 7%

Boomers, 40%

Gen X, 26%

Millennials, 23%

Post Millennial, 4%

Musically Engaged: Buy, Stream, Share, Concerts, Merch

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4%  

26%   25%  

40%  

5%  

Post  Millennial  

Millennial   Gen  X   Boomers   Silent  

%  Sales  By  Age  Cohort:    Digital  Albums,  Digital  Tracks,  CDs  

Google, Grooveshark, YouTube, Vevo, Rhapsody, Pandora, Spotify, Rdio, TuneIn, iTunes, iHeart, Xbox

13%

19% 20%

28%

20%

13-17 18-25 26-35 36-50 Over 50

Share of Time Spent Listening

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How do you expect someone to pay $100 for a subscription on the

strength of an artist when they won’t pay $.99 for a download?

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23% 30% 30%

39% 40%

Lady Gaga Beyonce 5 Seconds of Summer

Beck Taylor Swift

% Saying They WOULD Buy A New Release From Artist:

Huge/Big Fan of Artist, Like Artist A Lot/Little

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Gating

Exclusives

Windowing

Piracy

Sound Quality

Ownership

Our Customer

Affinity

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russ@musicwatchinc.com

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