Nielsen Shares Digital Music Consumption Stats At SXSW

Nielsen’s 2014 SXSW presentation, “The Insights Evolution: Why Only Obsessing About Sales Is Holding You Back,” focused on the rewards of building artist awareness through web/social activity, heightening music discovery through radio and streaming, and maximizing sales through radio and television for new song releases.

“Digital consumption has reached the masses, with a majority of consumers in the U.S. streaming music last year,” says David Bakula, SVP Client Development & Industry Insights, Nielsen Entertainment.  “The change in consumption requires us to continually evolve how we measure and define success.”

The presentation included the following statistics regarding how consumers access content in various ways.

• In 2013, 68 percent of U.S. consumers streamed music (includes YouTube music videos)
• Consumers who streamed music via paid streaming services rose from 4.2 percent to 4.9 percent
• Consumers who streamed music via free streaming services rose from 26.8 percent to 38.6 percent
• 56 percent of respondents listened to music on the car radio in a typical week; 53 percent listened to music on their mobile devices during the same period
• 67 percent of respondents listened to music on the car radio within a 12-month period; 69 percent listened to music on mobile devices during the same period; 72 percent listened to music on their desktop or laptop computer during the same period

Nielsen looked at the life cycles of a sampling of 2013’s top songs in terms of sales, On-Demand streams and airplay. Nielsen analyzed trends in sales, radio audience, on-demand streams, and web/social activity for those artists, leading to the following conclusions:

• Radio can be a vital driver of On-Demand streaming and sales
• The first eight to 12 weeks of a new release can present the best opportunity for TV and other exposure
• Around week 12, consumption typically reaches its peak
• After 12 weeks, artists should look for crossover opportunities to engage new audiences as consumption starts to decline
• In the long term, streaming presents the opportunity to lengthen monetization opportunities