NEW DELHI: Strong growth in digital music driven by the expansion of international and regional music brands as well as active smartphone growth in South East Asia, India and Africa, all topping 20 per cent compounded annual growth rate have resulted in the music market growing by around 9 per cent in 2012.
A study by Mahindra Comviva and Ovum Consulting released in Barcelona in Spain showed that the digital music industry is expected to grow $9 billion worldwide in 2014.
It predicts that Asia-Pacific emerging markets are expected to approach $450 million and Latin America top $200 million in trade value in 2014.
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The study encapsulates future trends on the uptake of digital music in terms of adoption rates; devices used to consume music services and segregation of listeners and suggested target approach.
In India, the adoption of mobile digital music is around 48 per cent which is a fraction below the average of 49 per cent.
The digital music market in 2012 has grown around 9 per cent on the previous year and is expected to top $9 billion worldwide at retail by 2014. Strong growth is driven by the expansion of international and regional music brands as well as active smartphone growth in South East Asia, India and Africa. Even though digital music growth has been somewhat tempered by declines in the developed Asia-Pacific markets of Japan and South Korea, the emerging markets of both the Asia-Pacific and Latin America are growing with 15 per cent and 25 per cent CAGR respectively.
According to the study, the emerging markets are Brazil, China, India, Indonesia, Mexico, Poland, South Africa and Turkey.
Mahindra Comviva digital services head Atul Madan said, “The music industry is witnessing dynamic changes and consumption patterns are shifting, driven by the increasing adoption of smartphones. The study reiterates our belief that the future of digital music will be based on enhanced engagement, 360 degree music experience and addressing the needs of price sensitive markets. Localised and customized content will play a greater role in enticing consumers.”
Across the nine markets surveyed (both emerging and developed), the share of devices used for listening, purchasing or downloading music has changed dramatically in 2013, as compared to 2010. Computer share has dropped significantly by 14 per cent points with mobile and tablets together up 15 per cent points, emphasising the importance of mobile for reaching lean-back listeners.
Segregating the
group of digital music consumers into lean-back and lean-forward listeners, the study suggests that there is a huge opportunity for operators when it comes to offering personalised music packages and targeted music services that will help reduce, churn, drive subscription and increase revenues.
