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Canadian consumers love music, and they’re spending more time with it in more ways. This is particularly the case with Canadian teens. According to Nielsen’s Music 360 Canada report, consumers in Canada report listening to 20% more music than they did in 2013. For teens, the lift is even higher at 40%. What’s driving the surge? Music consumption on tablets and smartphones, which is at an all-time high, and growth in streaming.

While 90% of Canadians report listening to 24 hours of music a week, 95% of Canadian teens listen to an average of 31 hours. Most Canadians listen to music in the background while doing other activities, especially teens, who spend one-third of their music time doing other things, like playing video games, reading and surfing the Internet.

As they are everywhere, technological shifts are affecting music consumption in Canada. For example, streaming volume is up 94% since Nielsen began tracking streaming activity in July 2014. The number of Canadians who report streaming music in the past year has grown to 71%, with teens spending twice as much time streaming music as the general Canadian population. However, Francophone Canadians generally stream less than the overall population.

Both teens and Millennials value the social aspects of streaming services, and teens are especially inclined to discover music through friends or relatives. Free video streaming is the key driver to how teens discover new music, although on the whole, radio remains the top format for discovery, as two-thirds of Canadians use radio to discover new music.

Among music listeners, at least half of all smartphone and computer owners use a digital music service on their device. Seventy-four percent of Canadian teens own a smartphone, and they’re more likely to use these devices to listen to music than other generational groups. And what are they listening to? While most music listeners in Canada select rock or pop, Canadian teens are listening to dance, hip hop and rap.

The Nielsen Music 360 Canada Study is a comprehensive in-depth study of consumer interaction with music in Canada. Data for the study was collected April 12-27, 2015 among 3,500 consumers ages 13+. Surveys were conducted online using a third party panel and data was weighted to the Canadian census population based on age, gender, race, education and household size.

Apple Music, the company’s highly anticipated streaming service which was launched earlier this week, is putting an emphasis on curation and music discovery. In a market place as competitive as music streaming, every player needs to find a selling point to separate itself from the pack. Where Tidal’s launch was all about lossless streaming and empowering the artist, Apple focused on the human aspect of music curation.

According to data from Edison Research, the internet has become the number 1 source for music discovery over the past few years. For decades, people relied on radio DJs to find out about new music. Today they simply go online and have a huge collection of music at their disposal. By adding a human element to online music discovery, Apple is actually taking a step back in a world where much of what we read, see or listen to online is determined by algorithms.

If successful, Apple Music could not only re-establish the company’s status as a key player in the music industry but also teach us an important lesson: sometimes humans are better than algorithms.

Infographic: The Internet Trumps Radio in Music Discovery | Statista
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As the demand for festivals becomes ever greater, a potential supply-side problem has started to become apparent. It hints at how the music industry has changed rapidly over the past ten years, and how it may need to adapt.

Over the past decade sales of recorded music fell sharply. According to the BPI, an industry body, income from recorded music fell from £1.2 billion in 2004 to just under £700m in 2014. The fall has slowed in recent years, partly because of the increase in online streaming, which accounted for £115m in 2014. But other revenue streams have become far more important—particularly the live music industry. In 2011 it was worth £1.6 billion, according to PRS for Music, which collects royalties on behalf of writers and publishers.

Artists bag only 10% of the net profit from recorded music, but can command up to 90% of gross ticket receipts. And promoters can make money from large, captive audiences by charging eye-watering prices for food, merchandise and parking.

However, the popularity of festivals poses a problem. As they have grown in Britain so too have they blossomed in America, Asia and Europe. But the pool of artists who appeal to large, diverse crowds and have enough music to play for an hour or more has not increased at the same rate. This means that there are not enough big headliners to go around. Analysis by Will Page, the director of economics at Spotify, a streaming service, shows that the average age of headline acts at nine festivals in Britain has gradually risen (see chart). In the 1990s, bands in their mid-twenties, such as Radiohead, headlined at Glastonbury, points out Mr Page. Although exceptions exist—this year, the 28-year-old Florence Welch was drafted in at the last minute to headline the Friday slot—it appears to be getting rarer, he says.

Part of the reason for this may be that punters themselves are ageing: according to Festival Insights, an industry publication, in 2014 the average age of a festival-goer was 33. Promoters may be reacting to this by putting on older acts. But it also reflects a supply-side constraint in the market, says Chris Carey, a music consultant. Fewer small clubs and pubs exist for new young bands to start out, he says, and older bands are still keen to perform live in order to boost their coffers. This means that fledgling artists find it both harder to start a career and to muscle in to a headline slot once they have gained momentum.

Via The Economist

Tomorrow at 11 AM ET, Apple will begin its quest to shake up the music industry with the launch of its highly-anticipated streaming service Apple Music. The service will complement features similar to those of competing services such as Spotify and Tidal with elements of human curation and a 24/7 global radio station named Beats 1.
Apple enters a market that is already highly competitive and where there is little room for differentiation. However, it is also a market in which no player has managed to build a subscriber base that is too large for Apple to challenge. If Apple manages to convince only a fraction of the hundreds of millions of Apple device users to give its new service a try, Apple Music will be in contention for the market lead.

Today’s chart shows which music streaming services people in the United States currently use. It is based on a survey conducted by Edison Research earlier in 2015 (before the launch of Tidal).

This chart illustrates the adoption of music streaming services in the United States.

Infographic: Apple Aims to Shake Up the Crowded Streaming Market | Statista
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