Consumers Would Switch Carriers For Music Streaming
January 7, 2016 – Consumers have nearly given up on the record store and buying CDs in favor of streaming services. Now a new study suggests it’s time for the music industry to think of a new distribution model that puts the music where people are most listening to it: on phones and in cars. After conducting a survey of more than 4,000 consumers about how they wanted to receive in the future, MusiComms found that 40% of the respondents would switch providers if a new plan included free streaming services. A quarter of those respondents also said they would buy services from car manufacturers and 15% said they would buy them from a video-service provider (such as a cable or satellite company).
“Music is a way of energizing customers in ways operators haven’t before,” Juliet Shavit, executive director of MusiComms, tells Marketing Daily. “An investment in a music service is a substantially lower cost than spending for [recruiting] a new customer.”
In the survey, consumers were given options about how they would like to receive music. In addition to the top three responses, the possibility of getting music through wearables and thermostats was also presented. Those were less popular, perhaps because the idea of getting music through those devices hasn’t yet entered consumers’ minds.
“[The companies] are all thinking about it, but it takes awhile for people to wrap their minds around it,” Shavit says. “The whole idea of energy companies getting into the music business is interesting.”
The survey points at the possibilities for new distribution models for the music industry and new value additives for technology companies, says Shavit. “They is a need for music and technology to collaborate on new distribution models,” she says. “The needs for these entities are different, but [the rewards] are substantial.”
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MusiComms™ is a global initiative dedicated to collaboration between the music and communications industries with the goal of seeking out new opportunities for innovation and long-term sustainability and profitability of both markets.
As a consortium, MusiComms™ hosts a number of activities that bring together leadership from music and technology-driven industries to develop, innovate and implement new revenue models and marketing opportunities, with the ultimate goal of leveraging music to distinguish brand and fuel business opportunities.
- Meredith Salefski, +1-615-864-7841