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Business News Digital
UK’s streaming market could double in value by 2023, says ERA
By Andy Malt | Published on Wednesday 20 November 2019
The UK’s streaming music market could double by 2023, according to a report commissioned by the Entertainment Retailers Association. It also could not. It depends if everyone totally messes it up or not. And by messing it up, I mean if everyone forgets to innovate. I mean, it’s an easy thing to forget. Let’s try not to forget.
Consultants at OC&C, who carried out the research, reckon that at its current trajectory the UK’s streaming music market will continue to grow so that annual revenues could top £1.1 billion by 2023.
However, if the streaming services and their music industry partners proactively upsell existing subscribers extra services and tempt more streaming hold-outs into the fold, it could reach as much as £1.6 billion – effectively doubling things from the 2018 market value of £829 million.
That’s a lot of “coulds” though, isn’t it? I mean, I reckon I could do 3000 press ups if I really put the effort it. But for now, five will have to do. Well, three.
Anyway, OC&C’s Pedro Sanches says this: “Our study indicates the UK music industry has a significant opportunity to increase the size of the market beyond even the most bullish expectations. It is clear that if the industry can come up with tailored offers which deliver value to specific groups of consumers then there’s a major prize at stake”.
That basically means that the current “here, have access to all the music in the world ever, we want £10 a month” approach isn’t right for everyone. And while there are some more focussed streaming services out there, the industry needs more in order to fulfil its potential. Particularly when it comes to attracting people who are put off by the all-you-can-eat option.
“The current model dates back to 2008”, Sanches goes on. “It has enjoyed enormous success in part because of its simplicity but further innovation will deliver more growth”.
ERA CEO Kim Bayley adds: “We commissioned this report to get an independent sense-check on the growth prospects for streaming. It’s fair to say even we were surprised just how positive the results are. This is a significant piece of work showing how music can embrace the learnings of related leisure markets”.
“Rewind ten years when the music industry was on its knees, few would have believed possible the miracle turnaround streaming services have now achieved”, she adds. “OC&C indicates that further opening the door to innovation is key to music reaching its full potential”.
