What will music streaming services do next?
Image credit: Dushawn Jovic
In the battle for subscriber loyalty, the question is what actually matters to listeners that services can provide?
The music streaming industry is undergoing a seismic shift. As market saturation grows and competition intensifies, platforms are increasingly focused on profitability and subscriber retention.
Luminate’s 2024 Midyear Music Report offers crucial insights into the evolving landscape and the factors influencing consumer behaviour.
One of the most pressing challenges facing streaming services is subscriber churn. With rising subscription costs and a plethora of options available, consumers are becoming more selective about their spending.
Luminate’s Music 360 study reveals a notable gender disparity in price sensitivity, with women more likely to cite cost as a reason for potential cancellation. In fact, overall price was the most important consideration amongst paying streamers in the U.S..
However, what appeals to subscribers considering a switch in the next few months is different. To combat churn and attract new subscribers, platforms must prioritize features that go beyond the basics of a music streaming platform. Content like livestreams and non-musical content are of the most value to those considering a switch.
Luminate’s data highlights the importance of deeper engagement features such as livestreamed concerts, exclusive artist content, and non-music content. While factors like price and catalogue size remain influential, these additional offerings are proving to be key differentiators in capturing the attention of the “opportunity” audience – those subscribers who are open to switching platforms.
It’s clear that data-driven insights will be instrumental in shaping the future of music streaming. By understanding consumer preferences and behaviours, platforms can tailor their offerings to meet the evolving needs of their audience.
As the industry continues to evolve, those who can effectively leverage data to drive subscriber loyalty and engagement will be best positioned for long-term success.
To delve deeper into the music industry’s most significant trends of the first half of 2024, access Luminate’s midyear report here.