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Music and Video Streaming - UK - April 2016

“Original content has become a powerful selling point for video streaming services. Music streaming services, which are looking to distinguish themselves within an increasingly competitive marketplace, are beginning to similarly explore the option of adding exclusive video content.”

– Rebecca McGrath, Media Analyst

This report looks at the following areas:

  • Increasingly competitive music streaming market looks to video
  • Personalisation of recommendations and prices

“Original content has become a powerful selling point for video streaming services. Music streaming services, which are looking to distinguish themselves within an increasingly competitive marketplace, are beginning to similarly explore the option of adding exclusive video content.”

– Rebecca McGrath, Media Analyst

This report looks at the following areas:

  • Increasingly competitive music streaming market looks to video
  • Personalisation of recommendations and prices

The music market has been significantly altered over the last year with the introduction of Apple Music, Amazon Prime Music and Tidal, leaving all services looking for ways of distinguishing themselves to consumers. Music streaming services are also facing increased industry push-back in regards to artist pay and are looking to avoid alienating powerful artists who have been shown to have sway on consumer choice.

Original content has become a focal point for the major video streaming services, with Netflix and Amazon making heavy investments in regards to producing new content, including films. Mintel’s consumer research shows the draw of high-quality exclusive content, along with early access to films, highlighting the importance of such investment.

This Report looks at streaming of free or paid-for video and music using online services or mobile apps. Download-only services are not included within the scope of this Report, however, some streaming services offer the facility to save or purchase files on an individual basis, for either online or offline play.

The market value for the music streaming industry is based on subscription revenues that typically give a user unlimited online access to an extensive range of tracks, which can normally be accessed on a range of connected devices (eg smartphones, tablets and laptops). Any revenues gained from advertising are not included in the market size.

The market value for the video streaming industry is based on subscription revenues only and does not include one-off transactions made to either rent or download TV programmes or films, though these additional revenues are referred to within the analysis where relevant.

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

          • The market
            • Music subscription revenue increases by 49% in 2015
              • Figure 1: Forecast value of subscriptions within the UK music streaming market, 2010-20
            • Video subscriptions to more than double by 2020
              • Figure 2: Forecast value of subscriptions within the UK video streaming market, 2010-20
            • The consumer
              • Spotify still leads the way in paid streaming but others not far behind
                • Figure 3: Paid-for music streaming, December 2015
              • Younger people are interested in personalised recommendations
                • Figure 4: Features on music streaming, December 2015
              • Limited interest in non-music-related content
                • Figure 5: Content on music streaming, December 2015
              • Netflix is used by nearly a third of video streamers
                • Figure 6: Paid-for video streaming, December 2015
              • People want recent releases
                • Figure 7: Video streaming content, December 2015
              • What we think
              • Issues and Insights

                • Increasingly competitive music streaming market looks to video
                  • The facts
                    • The implications
                      • Personalisation of recommendations and prices
                        • The facts
                          • The implications
                            • Improved recommendations and playlists
                              • Tailored payment options
                              • The Market – What You Need to Know

                                • Music subscription revenue increases by 49% in 2015
                                  • Video subscriptions to more than double by 2020
                                    • Faster broadband required as streaming demands rise
                                      • Mobile infrastructure improves to keep up with data-hungry streamers
                                        • Musicians cause a stir
                                          • Controversy caused over data use
                                          • Market Size and Forecast

                                            • Music subscription revenue increases by 49% in 2015
                                                • Figure 8: Forecast value of subscriptions within the UK music streaming market, 2010-20
                                              • Video subscriptions to more than double by 2020
                                                  • Figure 9: Forecast value of subscriptions within the UK video streaming market, 2010-20
                                                • Forecast methodology
                                                • Market Drivers

                                                  • Subscriptions make up over quarter of video market
                                                    • Figure 10: Video market revenue, 2015
                                                  • Streaming is driving the music industry forward
                                                    • Figure 11: Breakdown of consumer spending on music formats, 2013-15
                                                  • Faster broadband required as streaming demands rise
                                                    • Figure 12: UK residential broadband connections, by headline speed, November 2010-15
                                                  • Mobile infrastructure improves to keep up with data-hungry streamers
                                                    • Figure 13: 4G coverage in the UK, by mobile network provider, 2014 and 2015
                                                  • Smart TV ownership increases further
                                                    • Figure 14: Household ownership of consumer technology products, November and December 2015
                                                  • Musicians cause a stir
                                                    • Controversy caused over data use
                                                    • Key Players – What You Need to Know

                                                      • Spotify’s dominance under threat despite subscriber increase
                                                        • Netflix subscriptions continue to boom
                                                          • Major new music services shake up market
                                                            • Music services explore video
                                                              • Original films released by video streaming services
                                                              • Market Share

                                                                • Spotify’s dominance under threat despite subscriber increase
                                                                  • Figure 15: Music subscription revenues, Spotify and total industry, 2012-14
                                                                • Netflix subscriptions continue to boom
                                                                  • Figure 16: Number of Netflix subscribers, worldwide Q4 2003-Q4 2015
                                                              • Brand Research – Music Streaming

                                                                  • What you need to know
                                                                    • Brand map
                                                                      • Figure 17: Attitudes towards and usage of selected brands, January 2016
                                                                    • Key brand metrics
                                                                      • Figure 18: Key metrics for selected brands, January 2016
                                                                    • Brand attitudes: Apple Music already has a strong reputation
                                                                      • Figure 19: Attitudes, by brand, January 2016
                                                                    • Brand personality: Spotify is viewed as vibrant and fun
                                                                      • Figure 20: Brand personality – macro image, January 2016
                                                                    • Deezer has some negative associations
                                                                      • Figure 21: Brand personality – micro image, January 2016
                                                                    • Brand analysis
                                                                      • Spotify has a very positive brand image
                                                                        • Figure 22: User profile of Spotify, January 2016
                                                                      • Google Play Music considered flexible
                                                                        • Figure 23: User profile of Google Play Music, January 2016
                                                                      • Apple Music appeals to higher earners
                                                                        • Figure 24: User profile of Apple Music, January 2016
                                                                      • Deezer has some negative perceptions
                                                                        • Figure 25: User profile of Deezer, January 2016
                                                                    • Brand Research – Video Streaming

                                                                        • What you need to know
                                                                          • Brand map
                                                                            • Figure 26: Attitudes towards and usage of selected brands, January 2016
                                                                          • Key brand metrics
                                                                            • Figure 27: Key metrics for selected brands, January 2016
                                                                          • Brand attitudes: Netflix is considered worth paying more for
                                                                            • Figure 28: Attitudes, by brand, January 2016
                                                                          • Brand personality: Blinkbox/TalkTalk TV Store has a tired image
                                                                            • Figure 29: Brand personality – macro image, January 2016
                                                                          • Netflix is considered cutting edge
                                                                            • Figure 30: Brand personality – micro image, January 2016
                                                                          • Brand analysis
                                                                            • Netflix has very positive brand image
                                                                              • Figure 31: User profile of Netflix, January 2016
                                                                            • Amazon Prime Instant Video skews towards high-income streamers
                                                                              • Figure 32: User profile of Amazon Prime Instant Video, January 2016
                                                                            • NOW TV offers flexibility
                                                                              • Figure 33: User profile of NOW TV, January 2016
                                                                            • Rebranding offers chance to alter negative Blinkbox/TalkTalk TV Store image
                                                                              • Figure 34: User profile of Blinkbox/TalkTalk TV Store, January 2016
                                                                          • Launch Activity and Innovation

                                                                            • Major new music services shake up market
                                                                              • Apple Music launches
                                                                                • Tidal attempts to make waves
                                                                                  • Amazon Prime adds music
                                                                                    • YouTube relaunches Music Key as YouTube Red
                                                                                      • Spotify ramps up mobile advertising
                                                                                        • Music services explore video
                                                                                          • Spotify offers personalised weekly playlists
                                                                                            • Original films released by video streaming services
                                                                                              • Netflix launches pay-as-you-go card
                                                                                                • Offline viewing offered by Amazon Prime Instant Video
                                                                                                • The Consumer – What You Need to Know

                                                                                                  • YouTube dominates the free music streaming market
                                                                                                    • Spotify still leads the way in paid streaming but others not far behind
                                                                                                      • The computer is still preferred device for streaming music
                                                                                                        • Younger people are more interested in personalised recommendations
                                                                                                          • Videos of performances are a welcome addition
                                                                                                            • Netflix is used by nearly a third of video streamers
                                                                                                              • People want recent releases
                                                                                                                • Over a quarter are interested in a tiered payment service
                                                                                                                • Music Streaming Services

                                                                                                                  • YouTube dominates the free market
                                                                                                                      • Figure 35: Free music streaming, December 2015
                                                                                                                    • Spotify still leads the way in paid streaming but others not far behind
                                                                                                                      • Figure 36: Paid-for music streaming, December 2015
                                                                                                                    • Younger people are prepared to pay
                                                                                                                      • Figure 37: Paid-for music streaming, by age, December 2015
                                                                                                                    • Most people are using multiple streaming services
                                                                                                                      • Figure 38: Repertoire of music streaming services, December 2015
                                                                                                                  • Music Streaming Devices

                                                                                                                    • The computer is still the primary device for streaming music
                                                                                                                      • Figure 39: Devices for streaming music, December 2015
                                                                                                                    • 16-24s are most likely to use their smartphone
                                                                                                                      • Figure 40: Use of smartphone to stream music, by age, December 2015
                                                                                                                  • Music Streaming Features

                                                                                                                    • A fifth are interested in a time-based payment option
                                                                                                                        • Figure 41: Features on music streaming, December 2015
                                                                                                                      • Younger people are more interested in personalised recommendations
                                                                                                                        • More men would like a genre-specific service
                                                                                                                          • Figure 42: Interest in a streaming service that focuses on one genre of music, by gender, December 2015
                                                                                                                      • Music Streaming Content

                                                                                                                        • Videos of performances are a welcome addition
                                                                                                                          • Limited interest in non-music-related content
                                                                                                                            • Figure 43: Content on music streaming, December 2015
                                                                                                                          • Men and women interested in different content
                                                                                                                          • Video Streaming Services

                                                                                                                            • Over three quarters use YouTube
                                                                                                                              • Figure 44: Free video streaming, December 2015
                                                                                                                            • Netflix is used by nearly a third of video streamers
                                                                                                                              • Figure 45: Paid-for video streaming, December 2015
                                                                                                                            • Most video streamers use multiple services
                                                                                                                              • Figure 46: Repertoire of video streaming services, December 2015
                                                                                                                          • Video Streaming Devices

                                                                                                                            • People are most likely to stream video via a computer
                                                                                                                              • Figure 47: Devices for video streaming, December 2015
                                                                                                                            • NOW TV is more likely to be viewed on a mobile device
                                                                                                                              • Figure 48: Devices used to watch video streaming services, by paid-for video streaming service used, December 2015
                                                                                                                          • Video Streaming Content and Features

                                                                                                                            • Recent releases the main priority
                                                                                                                              • Figure 49: Video streaming content, December 2015
                                                                                                                            • Men want live sports
                                                                                                                              • Figure 50: Video streaming content, any rank, by gender, December 2015
                                                                                                                            • Over a quarter are interested in a tiered payment service based on hours
                                                                                                                              • Figure 51: Video streaming features, December 2015
                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                              • Abbreviations
                                                                                                                                • Consumer research methodology
                                                                                                                                • Appendix – Market Size and Forecast

                                                                                                                                  • Market forecasts
                                                                                                                                    • Figure 52: Value of subscriptions within the UK music streaming market, 2015-20
                                                                                                                                    • Figure 53: Value of subscriptions within the UK video streaming market, 2015-20
                                                                                                                                  • Forecast Methodology

                                                                                                                                  Companies Covered

                                                                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                                                                  Music and Video Streaming - UK - April 2016

                                                                                                                                  £1,995.00 (Excl.Tax)