866-997-4948(US-Canada Toll Free)

Music and Video Purchasing - UK - August 2014

Published By :

Mintel

Published Date : Sep 2014

Category :

Lifestyle

No. of Pages : 154 Pages

Blu-ray discs have no niche to fill. Had digital streaming or transmission services not evolved so quickly, Blu-ray would have been the natural successor to DVD; high quality physical content, slowly becoming the de facto industry standard. However, the next quality barrier has already reached the market – 4K – and all relevant market players seem to be looking to digital distribution for their content.
Table of Content

Introduction

Definitions
Abbreviations

Executive Summary

The market
Figure 1: Forecast value of total music sales, 2009 – 19
Figure 2: Forecast value of total video sales, 2009 – 19
Market factors
Continued growth in major streaming services
Download sales could eventually impact on streaming alternatives
Conflicts and mergers between old and new media
Market innovations
The consumer
Purchase of music
Figure 3: Consumer music purchases, April 2014
Purchase of video
Figure 4: Consumer video purchases, April 2014
Figure 5: Whether consumers who have only purchased digital media in the last three months had considered purchasing physical media, April 2014
Devices used to consume music/video
Figure 6: Devices used to watch video content, April 2014
Figure 7: Devices used to listen to music content, April 2014
Factors that would make consumers purchase music and video streaming
Figure 8: Factors that would convince consumers to purchase streaming service access after a free trial, April 2014
What we think

Issues and Insights

Will Blu-ray sales become a market defining metric?
The facts
The implications
Will digital music sales be sacrificed to streaming services?
The facts
The implications

Trend Application

Trend: Many Mes
Trend: Experience is All

Market Drivers

Key points
Continued growth in major streaming services
Figure 9: Paid and free Spotify users, worldwide, March 2011 – May 2014
Figure 10: Paid and free Netflix streaming subscribers, worldwide, Q4 2002 – Q4 2013
Download sales could start falling to streaming alternatives
YouTube causes industry concern with tough approach to streaming
Disney’s purchase of YouTube studio demonstrates power of new media
Conflict appears between ISPs and video streaming providers
Figure 11: Netflix UK ISP speed index, June 2014

Who’s Innovating?

Key points
Google runs “live music” ad break
Chromecast brings video streaming services to “dumb” TVs
Bop.fm
PingTune merges messages and music

Market Size, Segmentation and Forecast

Key points
Both music and video markets showing positive growth
Figure 12: Value of music sales, 2009 – 19
Figure 13: Value of video sales, 2009 – 19
Forecasts
Figure 14: Forecast value of total music sales, 2009 – 19
Figure 15: Forecast value of total video sales, 2009 – 19
53% of video industry revenue comes from DVDs
Figure 16: Video market revenue and year on year changes, 2013
Digital music now accounts for 50% of revenue
Figure 17: Music industry segmentation, 2009 - 2013

Companies and Products

Amazon.com, Inc
Company history
Financials and strategy
Figure 18: Financial performance of Amazon PLC, 2010-12
Company overview
Financials and strategy
Figure 19: Financial performance of the HMV Group, 2010-12*
Netflix Inc
Company overview
Financials and strategy
Figure 20: Financial performance of Netflix, Inc, 2009-13
Figure 21: Netflix international streaming customers, 2012 and 2013
Spotify
Company overview
Financials and strategy
Figure 22: Financial performance of Spotify Ltd., 2009-11
Tesco
Company overview
Financials and strategy
Figure 23: Tesco Plc: Group financial performance, 2009/10-2013/14
YouTube, LLC
Company overview
Financials and strategy
Figure 24: Financial performance of Google, Inc., 2010-2012

The Consumer – Purchase of Music

Key points
Equal proportions of consumers purchase physical and digital music
Figure 25: Consumer music purchases, May 2014
Streaming behaviour could indicate download overtake
Figure 26: purchase of digital music, by age, May 2014
Four in ten physical music buyers have never purchased digital music
Figure 27: Music purchasing, May 2014
Figure 28: Consumers who have never purchased physical or digital music, by age, May 2014
Figure 29: purchase of vinyl music in the last three months, May 2014
Streamers most likely to buy physical music
Figure 30: Proportion of digital music purchasers who have also purchased physical music in the last three months, May 2014
Figure 31: Proportion of streaming music subscribers who have also purchased digital tracks and albums in the last three months, May 2014

The Consumer – Purchase of Video

Key points
Blu-ray discs less commonly bought than streaming access
Figure 32: Consumer video purchases, May 2014
Figure 33: Cross-purchase of Blu-ray and DVD by consumers, May 2014
DVDs and streaming services only formats with gender equality
Figure 34: Consumer video purchases, by gender, May 2014
Streamed video users least likely digital purchasers to also buy physical media
Figure 35: Purchase of physical video in the last three months, by consumers who have purchased digital video in the last three months, May 2014
A fifth of digital buyers are lost to the market
Figure 36: Whether consumers who had only purchased digital music in the last three months had considered purchasing physical media, May 2014

The Consumer – Devices Used to Consume Music/Video

Key points
Television still the primary TV/Film vehicle
Figure 37: Devices used to watch video content, May 2014
Strong drop with age for mobile device viewing
Figure 38: Film and TV show consumption on mobile devices, by age, May 2014
Music streaming through TV non-existent
Figure 39: Devices used to listen to music content, May 2014

The Consumer – Factors that Would Make Consumers Purchase Music and Video Streaming

Key points
Motivations to purchase streaming services are low
Figure 40: Factors that would convince consumers to purchase streaming service access after a free trial, May 2014
Minimal dissension between 16-24s and 25-34s
Figure 41: Agreement that a streaming service being available across all devices is more likely to lead to consumers purchasing a subscription, by age, May 2014
Early UK release tempting to students
Figure 42: Factors that would encourage consumers to pay for a streaming service after a trial month, by current working status of consumers, May 2014

Appendix – Market Size and Forecast

Figure 43: Total video sales forecast, 2014 - 2019
Figure 44: Digital video sales forecast, 2014 - 2019
Figure 45: Physical video sales forecast, 2014 - 2019
Figure 46: Total music sales forecast, 2014 - 2019
Figure 47: Digital music sales forecast, 2014 - 2019
Figure 48: Physical music sales forecast, 2014 - 2019

Appendix – The Consumer – Purchase of Music

Figure 49: Music purchased by consumers, May 2014
Figure 50: Music purchased by consumers who purchased physical music, May 2014
Figure 51: Music purchased by consumers who purchased digital music, May 2014
Figure 52: Music purchased by consumers who purchased CD albums, May 2014
Figure 53: Music purchased by consumers who purchased digital singles, May 2014
Figure 54: Music purchased by consumers who purchased digital albums, May 2014
Figure 55: Music purchased by consumers who purchased a subscription to a streaming music service, May 2014
Figure 56: Music purchased by consumers who purchased a CD single, May 2014
Figure 57: Music purchased by consumers who purchased a vinyl record, May 2014
Figure 58: Consumers who purchased physical music, by demographics, May 2014
Figure 59: Consumers who purchased digital music, by demographics, May 2014
Figure 60: Consumers who purchased CD albums, by demographics, May 2014
Figure 61: Consumers who purchased digital singles, by demographics, May 2014
Figure 62: Consumers who purchased digital albums, by demographics, May 2014
Figure 63: Consumers who purchased a subscription to a streaming music service, by demographics, May 2014
Figure 64: Consumers who purchased a CD single, by demographics, May 2014
Figure 65: Consumers who purchased a vinyl record, by demographics, May 2014

Appendix – The Consumer – Purchase of Video

Figure 66: Video purchased by consumers, May 2014
Figure 67: Video purchased by consumers, by consumers who have bought Physical Video, May 2014
Figure 68: Video purchased by consumers, by consumers who have bought Digital video, May 2014
Figure 69: Video purchased by consumers, by consumers who have bought a DVD, May 2014
Figure 70: Video purchased by consumers, by video consumers who have bought a subscription to a streaming video service, May 2014
Figure 71: Video purchased by consumers, by consumers who have bought digital video download to keep on a device, May 2014
Figure 72: Video purchased by consumers, by consumers who have bought a Blu-ray disc, May 2014
Figure 73: Video purchased by consumers, by consumers who have bought a DVD/Blu-ray box set, May 2014
Figure 74: Video purchased by consumers, by consumers who have rented digital film that expired after watching it, May 2014
Figure 75: Consumers who purchased physical video, by demographics, May 2014
Figure 76: Consumers who purchased digital video, by demographics, May 2014
Figure 77: Consumers who purchased DVDs, by demographics, May 2014
Figure 78: Consumers who purchased a subscription to a streaming video service, by demographics, May 2014
Figure 79: Consumers who purchased a digital video download to keep on a device, by demographics, May 2014
Figure 80: Consumers who purchased a Blu-ray disc, by demographics, May 2014
Figure 81: Consumers who purchased a DVD/Blu-ray box set, by demographics, May 2014
Figure 82: Consumers who rented a digital film that expired after watching it, by demographics, May 2014
Figure 83: Considerations in buying physical media by those who did not, May 2014

Appendix – The Consumer – Devices Used to Consume Music and Video

Figure 84: Devices used to listen to/watch music and video, May 2014
Figure 85: Devices used to listen to/watch music and video, by devices used to watch films, May 2014
Figure 86: Devices used to listen to/watch music and video, by devices used to watch TV episodes, May 2014
Figure 87: Devices used to listen to/watch music and video, by devices used to listen to Music singles or albums, May 2014
Figure 88: Devices used to listen to/watch music and video, by devices used to listen to Radio/Internet radio, May 2014
Figure 89: Devices used to watch films, by demographics, May 2014
Figure 90: Devices used to watch TV episodes, by demographics, May 2014
Figure 91: Devices used to listen to music singles or albums, by demographics, May 2014
Figure 92: Devices used to listen to Radio/Internet radio, by demographics, May 2014

Appendix – The Consumer – Incentives to Purchase Streaming

Figure 93: Factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 94: Most popular music purchased by consumers, by factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 95: Next most popular music purchased by consumers, by factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 96: Most popular video purchased by consumers, by factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 97: Next most popular video purchased by consumers, by factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 98: Factors that would make consumers purchase a streaming subscription at the end of a trial period, by most popular factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 99: Factors that would make consumers purchase a streaming subscription at the end of a trial period, by next most popular factors that would make consumers purchase a streaming subscription at the end of a trial period, May 2014
Figure 100: Most popular factors that would make consumers purchase a streaming subscription at the end of a trial period, by demographics, May 2014
Figure 101: Next most popular factors that would make consumers purchase a streaming subscription at the end of a trial period, by demographics, May 2014

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title *
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *