Fans still prefer music live to digital, Nielsen Music 360 report finds

How do people most like to enjoy their music? Live, at least according to the Nielsen Music firm’s latest edition of its Music 360 report, which tracks how consumers take in music in today’s fractured, multi-platform world.

Of all the ways to experience music, Nielsen found, 36% of consumers’ money spent goes toward live events, far and away the most popular way of consuming music.

Of course, that no doubt partly reflects the fact that the cost of tickets for most live events far outpaces the cost of buying downloads, CDs or paying for a monthly streaming subscription.

But in an intriguing facet of the study into the changing habits of fans in an era in which music is increasingly defined by streaming services, 21% of overall music spending still goes toward physical CDs or downloaded digital singles and albums, compared to only 6% to streaming service subscriptions.

Among 13- to 17-year-old consumers, 38% of their money is spent on physical and digital albums and tracks, with a higher-than-average 9% for streaming services, and just 5% for satellite radio subscriptions.

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Those are just a couple of highlights of the report, which Nielsen has excerpted for public consumption from the full paid study that goes out this week to its entertainment industry subscribers.

“Fans are interacting with music differently,” the report’s summary states, “but their passion for music remains strong. In fact, listeners are spending more time and more money on music-related expenses in 2016 than they did in 2015.”

On the streaming front, Nielsen reports that 80% of music listeners used such a service during the 12 months preceding the study. The report was conducted from July 14 to Aug. 5 of this year, among 3,554 consumers “reflective of the population of the United States.”

That figure is up five percentage points from a year earlier, when 75% of respondents said they had used a streaming service in the prior year.

In terms of the time spent listening to music, Nielsen reports that radio is still the most popular method, accounting for 27% of the time people spend listening by format. Digital music collections accounted for an additional 20%, followed by streaming of on-demand audio (12%), programmed audio (11%), and music video and physical music collections (tied at 10% each).

Demographically, Hispanic consumers (as defined by Nielsen) spent on average 90% more on music than the general population and also scored higher numbers than average for attending DJ events and smaller live music sessions.

Hispanics also posted higher numbers than teens or millennials (ages 18 to 34) for attending live concerts with one main headliner, small live music sessions, live concerts with multiple headliners, music festivals, club events with DJs and club events with a specific DJ.

The survey also explored music preferences broken down by political affiliation, with Democrats scoring higher than the general population in money spent on club events with DJs (124% more than average), small live music sessions (+54%), digital music (+43%) and video on demand or pay-per-view services (+38%).

Republicans, meanwhile, spent more on premium TV subscriptions (76% above the general population), comedy performances (+65%), sports events (+35%) and satellite radio services (+32%).

Entertainment options that appeal the most to independent voters were video games (+42%), live music concerts (+31%) and paid online streaming (+14%).

The study also digs extensively into how consumers respond to branding affiliations at concerts and festivals they attend, with nearly two-thirds of festivalgoers saying they viewed a brand more favorably if they offered product giveaways at live events and nearly as many (64.8%) saying the same if a brand sponsors an air-conditioned tent at a festival.

More than half (53.7%) said their estimation of a brand improves when that brand sponsors an existing festival, while 46.3% said they view the brand more favorably for producing its own music festival.           

              

randy.lewis@latimes.com

Follow @RandyLewis2 on Twitter.com

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