IMS Technology Report Asia Pacific 2016 · IMS Technology Report Asia Pacific 2016 David Boyle, EVP...

@beglen

IMS Technology Report Asia Pacific 2016

David Boyle, EVP Insight, BBC Worldwide

Content courtesy of

@beglen

MIDiA Research is a research, data and analysisservice focused on the intersection of media &technology. Our reports leverage proprietaryconsumer data,market forecasts and indices.

I am a music, media and technology analyst andconsultant of 17 years standing, I previously heldsenior positions at Jupiter and Forrester Research, Inow head up MIDiA Research.

MIDiA Research clients pay a one-off annual fee toget online access to our research reports and datato get unique insight into the digital content andconsumer technology marketplaces.

Mark Mulligan

Content supplied by MIDIA.

About the author:

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PART 1: Streaming

PART 2: Beyond the audio

PART 3: Messaging and the future

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RECORDED MUSIC:

Streaming is changing everything

IMS 2012Streaming

grows engagementand spend

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RECORDED MUSIC:


IMS 2012 IMS 2016Streaming


Streaming CANNIBALISES spend

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RECORDED MUSIC:




Streaming CANNIBALISES spend27%havestoppedorreducedbuyingdownloads

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RECORDED MUSIC:





Discovery=consumption

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RECORDED MUSIC:






Rapidchange… still

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RECORDED MUSIC:






Rapidchange… stillMorelikeradiothanpurchasing

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• Totalsalesdeclinedby1%• Streamingincreaseditsshareofrevenuesfrom16%to21%… butgrowthisslowing

• Musicsales(downloadsandCDs)fellby8%… butwerestill71%ofallrevenue

• StreamingMusicActivityIsBreakingThroughToTheMainstream… ThoughPaidStreamingRemainsNiche.52%stream,13%pay

• Globalmusicsubscribersgrewfrom42millionto70million… thougharound15millionarezombiesand‘supertrials’

• Freestreamingwas31%revenuebut90%ofusers

WHEREWEAREATRECORDED MUSIC:

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Music sales is FAR from dead

Sales(downloadas andCDs)fellby8%…

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Music sales is FAR from dead

Sales(downloadas andCDs)fellby8%…

… butwerestill71%ofallrevenue

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OnDemandProgrammed

Prem

ium

Free

Note:usernumbersarecumulativetotalsnotuniqueaudience.Source:MIDiAResearch1/16

StreamingBreakingintomainstream… butlandscapeisuneven

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OnDemandProgrammed

Prem

ium

Free



PaidStreamingRemainsNiche.52%

stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



… thougharound15millionarezombiesand‘supertrials’


stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



Free:was31%revenuebut90%ofusers



stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



10m




stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



57m10m




stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



57m10m

310m Free:was31%revenuebut90%ofusers



stream,13%pay

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OnDemandProgrammed

Prem

ium

Free



57m10m

1,040m310m Free:was31%revenuebut90%ofusers



stream,13%pay

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“Streaming playlists appear to have overtaken albums for listening time in the US”

- May 2016

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MoreChoiceLeadsToMoreFickleFans

Mainlylistentoalbums

PAIDSTREAMERS

$60%

FREESTREAMERS

31%

MIDiAResearchConsumerSurvey6/15(US,UKandFrance)n=1,500

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MoreChoiceLeadsToMoreFickleFans

Mainlylistentoalbums

Listentoalbums&tracksless… becausediscoveringmoremusic

PAIDSTREAMERS

$60%

60%

FREESTREAMERS

31%

38%

MIDiAResearchConsumerSurvey6/15(US,UKandFrance)n=1,500

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BorderBreaker:CuratedPlaylistsTransformedFederFromLocalFrenchSuccessToInternationalSuccessSpotifyStreamsOfFeder ‘Goodbye(feat.Lyse)’March2015ToDecember2015AndKeyPlaylisting Activity

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Added to ‘Hot Hits NL’

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Added to ‘Hot Hits NL’Added to German Topsify lists

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Added to ‘Today’s Top Hits’ (US)

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Added to ‘Today’s Top Hits’

France

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PART 1: Streaming



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YouTubeMusicVideoViewingIsNowMainstreamAndSophisticatedBehavioursAreEmergingAtScaleYouTubeMusicConsumerBehaviour,2016

MIDiAResearchConsumerSurvey3/16n=3,500(US,Brazil,Australia,UK,France,Sweden)Questionasks:Thinkingabouthowyoudiscover,consumeandinteractwithmusicwhichofthefollowingdoyoudo?

%ofconsumers

4%

7%

11%

18%

33%

39%

54%

UploadvideosofmyownmusictoYouTubeorSoundcloud

UploadmusictoYouTubeorSoundcloud

UseYouTuberipper

CreateartistplaylistsonYouTube

Watchvideosonartists'sYouTubechannel

OnlylistentoaudioonYouTubemusicvideos

Watchmusicvideosonline

Freeaudiostreamingpenetration38%

NOT FOR PRESENTATIONFOR WRITTEN REPORT

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CuratedPlaylistsAreBecomingTheKeyCurrencyOfStreamingDiscoveryAndConsumption

3.7

3.9

5.2

7.8

Warner/Topsify

Universal/Digster

Sony/Filtr

Spotify/Today'sTopHits

MillionsofFollowersOfKeyCuratedPlaylistsOnSpotify

Sources:MIDiAResearch/CompanyReports

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Consumersaredemandingvideo:AWholeNewGenerationOfYouTubeNativeArtistsIsEmerging

BOYCEAVENUE

HANNAHTRIGWELL

DAVEDAYS

TYLERWARD

12 subscribersmillion

3.3viewsbillion

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BOYCEAVENUE

HANNAHTRIGWELL

DAVEDAYS

TYLERWARD

12 subscribersmillion

3.3viewsbillion

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“Miaopai, a leading video clip capturing and sharing app in China has seen daily views surpass 1.7 billion, up from 510 million in late 2015”

“Weibo is seeing a 9.7 times year-over-year increase in video views”

NOT JUST YOUTUBE:

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MusicAficionadosWantMoreThanJustTheSongFromTheirFavouriteArtists

%ofconsumersegment

7%

26%

18%

45%

0% 10% 20% 30% 40% 50%

Wouldpayforaninteractivealbumappwithmusic,video,photosandinterviews

Formemusicismorethanjustthesong,itisaboutthesinger,bandorDJandtheir

story

MusicAficionados

Questionasks:Whichofthefollowingstatementsapplytoyou?Note:MusicAficionadosareconsumersthatspendaboveaveragemoneyandtimewithmusicSource:MIDiAResearchConsumerSurvey06/14(UK,US,Brazil)n=3,000

PenetrationByAgeOfSuperFansAndConsumersInterestedIn360°MusicProducts

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• Afew£/$/€amonthperartist• Supereasyopt-in/opt-out• Interactiveexperiencewithallartist’smusicplusothers

suchasinfluencesandinfluencedplaylists• Livestreams,concertfootage,interviews,acoustic

sessions,video,imagesetc.• Streamingartistsubscriptionscanmonetizetherevenue

noman’slandbetweenadsupportedandsubscriptions

ArtistSubscriptions

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PART 1: Streaming



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How people hear about live Events in China• Among those who attend live events, half find out through WeChat, followed by around 40% who discover through TV shows/ads and Weibo.

CTD. How do you typically hear about upcoming concerts/live music events, if at all? Base: Attend Live Music Events (832)

52% 42%

39% 36%

35% 28%

27% 26%

25% 22%

20% 18% 18% 18%

16% 15%

13% 13% 13%

10% 9% 8%

6% 1%

WeChatTVshows/ads

WeiboOfficialwebsiteofband/label/event/venue

Friends/relativesiQiyi.com

InternetadsYouku.com

RadioNewspapers/Magazines

LeTV.comDamai

Billboards/outdooradsBlogs,forums,messageboards,chatrooms

OnlinereviewsSocialnetworkingsites(otherthanWeibo)

Piao.comTextmessagenotifications

EmailnotificationsOthermusicwebsites

iTunesYongle228.com.cn

VideowebsitesOther

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How people hear about live Events in China• Among those who attend live events, half find out through WeChat, followed by around 40% who discover through TV shows/ads and Weibo.

CTD. How do you typically hear about upcoming concerts/live music events, if at all? Base: Attend Live Music Events (832)

52% 42%

39% 36%

35% 28%

27% 26%

25% 22%

20% 18% 18% 18%

16% 15%

13% 13% 13%

10% 9% 8%

6% 1%

WeChatTVshows/ads

WeiboOfficialwebsiteofband/label/event/venue

Friends/relativesiQiyi.com

InternetadsYouku.com

RadioNewspapers/Magazines

LeTV.comDamai

Billboards/outdooradsBlogs,forums,messageboards,chatrooms

OnlinereviewsSocialnetworkingsites(otherthanWeibo)

Piao.comTextmessagenotifications

EmailnotificationsOthermusicwebsites

iTunesYongle228.com.cn

VideowebsitesOther

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Messaging apps have now surpassed social networksMonthly active users of the top four messaging apps and social networks

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WEBSITES

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WEBSITESSOCIAL NETWORKS

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APPS

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APPSMESSAGING

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GLOBALMUSICMESSAGINGAPPMARKET

Averagenumberof

sessionsperuserpermonth

346

Averagesessionlength(minutes)

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140

458

Monthlyactiveusers CumulativeDownloads

GlobalMusicMessagingAppAudience


Averagenumberof


346


m

m

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140

458



58.6 billionTotalnumberofmonthlyinteractionsonmobilemessagingapps


Averagenumberof


346


m

m

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140

458



58.6 billionTotalnumberofmonthlyinteractionsonmobilemessagingapps


1 Musical.ly2 Flipagram3 Dubsmash4 Triller5 MusicMessenger

Top5MusicMessagingAppsByMonthlyActiveUsers

Averagenumberof


346


m

m

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140

458


GlobalMusicMessagingAppMarket

1 Musical.ly2 Flipagram3 Dubsmash4 Triller5 MusicMessenger

Top5MusicMessagingAppsByMonthlyActiveUsers

m

m

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Awildride:Rapidlyacceleratingchange

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@beglen ANDREESSEN HOROWITZ

Thenextwave:Asiawillbringmassivenewaudiences

7.3bn People, 5.4bn over 14 years old, 4.6bn mobiles, 2.5bn smartphones

Smartphone

Mobile

Not mobile




Smartphone

Mobile

Not mobile

350m

110m




Smartphone

Mobile

Not mobile

350m

110m

180m

140m

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Technology is eating everything

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PART 1: Streaming

Get on the playlist bandwagon


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PART 1: Streaming

Get on the playlist bandwagonPART 2: Beyond the audio

Authentic stream of video + experiences


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PART 1: Streaming

Get on the playlist bandwagonPART 2: Beyond the audio

Authentic stream of video + experiencesPART 3: Messaging and the future

Messaging is the new mall. Be there… and watch out for the next Asian billion


@beglen

IMS Technology Report Asia Pacific 2016

David Boyle, EVP Insight, BBC Worldwide

Content courtesy of

@beglen

MIDiA Research is a research, data and analysisservice focused on the intersection of media &technology. Our reports leverage proprietaryconsumer data,market forecasts and indices.

I am a music, media and technology analyst andconsultant of 17 years standing, I previously heldsenior positions at Jupiter and Forrester Research, Inow head up MIDiA Research.

MIDiA Research clients pay a one-off annual fee toget online access to our research reports and datato get unique insight into the digital content andconsumer technology marketplaces.

Content supplied by MIDIA.

About the author:Contact:MarkMulliganPhone:+44(0)7801166712Email:[email protected]:http://midiaresearch.comBlog:http://musicindustryblog.wordpress.comTwitter:@mark_mulligan

@beglen

Awakening

Thedefinitiveaccountofthemusicindustry’sdigitaljourney

AvailablefromAmazon,iTunesandGooglePlayStorenow!

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COMPANYOVERVIEW Musical.ly

CompanySynopsis

Musical.lyisoneoftheleadingmusicmessagingapps.Userscreatevideossuchaslipsynchsanddanceroutinesto15secondaudioclips,withmusicbeingthemostpopularformat.Musical.ly'scoreuserbaseisyoungfemales,particularlyteensandtweens.TheappismostpopularoniOS,reaching#1intheAppleAppStoreFreechartsin20countries.Musical.ly'scorecompetitorDubsmash'scoreplatformisAndroid.

CompanyType MusicmessagingappPricing&Product FreeKeyMetrics 100millionregisteredusersPeakregularusers(millions) 60DateLaunched 2014CountryOfOrigin USInvestmentToDate(MillionsOfUSDollars) 116

InvestorsGGVCapital,Qiming VenturePartners,Greylock Partners,DCM

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COMPANYOVERVIEW Flipagram

CompanySynopsis

Flipagramwasoneofthefirstwaveofmusicmessagingapps.Thecompanyhadamodest150,000users,allbeitpaid,beforebeingacquiredbyFarhidMohit'sCheerscompany.RelaunchedinOctober2013Flipagramenjoyedarapidascent,hitting#1onappstoresin87countriesbyDecember2013whichinturnledtoa$70millioninvestmentroundledbySequoiaCapital.AlthoughFlipgramretainsahighlyengageduserbaseitsgrowthslowed,onlyadding3millionMAUsbetweenDecember2015andJuly2016toitsexisting30million.

CompanyType MusicmessagingappPricing&Product Free

KeyMetrics

4.2billionvideoviewsaday,500millionFlipagramvideostoriescreated- 90%withasongattached,33millionactiveusers,200millioncumulativeusers

Peakregularusers(millions) 33DateLaunched 2013CountryOfOrigin USInvestmentToDate(MillionsUSD) 70Investors IndexVentures,Sequoia,Kleiner Perkins

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COMPANYOVERVIEW Dubsmash

CompanySynopsis

DubsmashisaGermanoriginatedsocialvideomessagingappwithastrongfocusonmusicandlipsynching.Usersuploadsoundsorselectfromacuratedlistuploadedbyothers.SoundsincludeTVshowsandmovieclipsandmusicvideos.Usersrecordtheirownvideosandcanshareacrosssocialplatforms.WhilecorecompetitorMusical.lyisstrongeroniOS,DubsmashisstrongeronAndroid.


KeyMetrics 100 milliondownloads

Peakregularusers(millions) 25DateLaunched 2013CountryOfOrigin Germany

InvestmentToDate(MillionsUSD) 5.7

InvestorsIndexVentures,SunstoneCapital,HassoPlattner Ventures,Eniac Ventures

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COMPANYOVERVIEW Triller

CompanySynopsis

Trillerisawellfundedbutasyetrelativelysmallmusicmessaging/musicvideocreationapp.Trillerprovidesuserswithacatalogueofmusicfromwhichtheycancreatetheirownmusicvideosusingarangeoffiltersandothercreatortools.Duringitslaunchyear(2015)itgainedsignificantsupportfromahostoftoptiertalentincludingKevinHart,JustinBieberandCharliePuth.

CompanyType Musicmessaging/videocreationappPricing&Product Free

KeyMetrics

Over33millionmusicvideoscreatedand1millionmusicvideosmadeinasingleday(end2015)

Peakregularusers(millions)DateLaunched 2015CountryOfOrigin US

InvestmentToDate(MillionsUSD) 4.5Investors IDGVenturesUSA,FlightVentures

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COMPANYOVERVIEW Rithm

CompanySynopsis

Rithm isahyrbrid musicmessaging/streamingmusicapp.LaunchedasapivotbyrecommendationcompanyMavenSay Rithm letsuserslistentoandsharemusicaswellasmusicbasedmessageswithtext,imagesandanimatedemojis.FollowingsecuringlicensingdealswiththemajorlabelsRithm alsoallowsuserstolistentoandsharefulltracks.A$3.99amonthtierallowsuserstolistentomusicintheirentirechathistoryaswellasaplaylistthatholdsupto40additionaltracks.

CompanyTypeMusicmessagingapp/streamingmusicservice

Pricing&ProductFreeand$3.99tolistentoallsongsinchathistory

KeyMetrics 3millionmonthlyactiveusersPeakregularusers(millions) 3DateLaunched 2013CountryOfOrigin USInvestmentToDate(MillionsUSD)Investors

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COMPANYOVERVIEW Tagbeat

CompanySynopsis

FoundedbyserialNordicentrepreneurIngeAndreSandvik,TagbeatenablesuserstotakemusicfromSpotifyandcreatevisualstories.Sandvik’spreviousstartupSoundropfollowedthesamerouteofcreatinganappentirelydependentontheSpotifyecosystemandwaslefthighanddrywhenSpotifycloseditsappsplatforminNovember2014.

CompanyType MusicmessagingappPricing&Product FreeKeyMetricsPeakregularusers(millions)DateLaunched 2016CountryOfOrigin NorwayInvestmentToDate(MillionsUSD)Investors 500StartUps

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COMPANYOVERVIEW MusicMessenger

CompanySynopsis

MusicMessengerisanappofIsraelioriginthatallowsuserstosharemusicfromYouTubeandSoundcloud andusers’collections.Despiteskirtingrightontheedgeof‘fairuse’ofcopyrightitquicklybecameasmashamongmusicindustryluminarieswithartistsandmanagerssuchasNickiMinaj,will.i.am,DavidGuetta,SebastianIngrosso,andGeeRobersonjoiningRussiantycoonRomanAmbramovic ininvesting.Followingonfromitsinitial$5mroundMusicMessenger’sholdingcompanyShellanoo groupraiseda$30millionseriesBround7monthsfromtheinitiallaunchinApril2014.Growthhoweverwashardertocomeby.Afterhittingaround5millionbyApril2015growthappearstohaveslowedandthemarketplacehasshiftedmoretowardslipsynch appslikeMusical.ly andDubsmash.


KeyMetrics5millionusersandadding1millionamonth(April2015)

Peakregularusers(millions) 5DateLaunched 2014CountryOfOrigin IsraelInvestmentToDate(MillionsUSD) 35

InvestorsRomanAmbramovic,NickiMinaj,DavidGuetta,SebastianIngrosso,GeeRoberson,will.i.am

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COMPANYOVERVIEW PingTune

CompanySynopsis

PingTuneisaUKbasedmusicmessagingappthatwasacquiredbyIndiancontentcompanyErosDigitalinOctober2015.PingTunecombinesYouTubeandSouncloudsearchandsharefunctionalitywithpersonalizedmessagingandvideocreationtools.

CompanyType MusicmessagingappPricing&Product FreeKeyMetricsPeakregularusers(millions)DateLaunched 2013CountryOfOrigin UK

InvestmentToDate(MillionsUSD) 1.6

Investors RupertHambro,Dominic Perks

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COMPANYOVERVIEW Flippy

CompanySynopsis

LaunchedinJune2016Flippyisapivotfromnext-genpresentationstartupMeograph(founded2015)withteammembersfromMIT,Berkeley,andMcKinsey.FlippyisahybridofFaceSwapandDubsmash,allowinguserstousetheirsmartphone’sfrontcameratosuperimposetheirfaceontoacelebrity’sfacetolipsynch,includingmusicvideosandwellknownmoviescenes.Clipscanbesharedacrosssocialmedia.

CompanyType MusicmessagingappPricing&ProductKeyMetrics n/aPeakregularusers(millions)DateLaunched 2016CountryOfOrigin USInvestmentToDate(MillionsOfUSDollars) 0.27Investors StreamlinedVentures,MediaCamp

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COMPANYOVERVIEW WordUp

CompanySynopsis

WordUp isamusicmessagingplatformwhichhassimilarfunctionalitytoFlipagram andMuscial.ly butwithadeeperfocusonlyricsandmusicasthemessage.WordUp allowsuserstocustomizetheirmessagesbyselectingthelyricsthatbestconveyusers’desiredsentiment.Userstypekeywordsreflectingwhattheywanttosayandtheappfindsthesongsthatsayit.WordUp hasacquiredoneofthelargestdatabasesoflyricstopowertheservice.TheconsumerappisinprivatebetawithanAPIthatiscurrentlyavailabletoartists,brands,andplatformsalike.

CompanyType MusicmessagingappPricing&ProductKeyMetrics ArtistandbrandpartnershipsPeakregularusers(millions)DateLaunched 2015CountryOfOrigin USInvestmentToDate(MillionsOfUSDollars)Investors Founders

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