Knowledge Base Article: KB2490
Topic: FAQ - Music Business Questions & Issues

Title: Music Discovery Still Dominated By Radio, Says Nielsen Music 360 Report


Last Reviewed: Aug 17, 2012
Keywords:

Music Discovery Still Dominated By Radio, Says Nielsen Music 360 Report
Radio is still the dominant way people discover music (48%) – followed by tips from friends/relatives (10%), and YouTube (7%), but more teens listen to music through YouTube than through any other source (64%) -- followed by radio (56%) and iTunes (53% ) and CDs (50%) - according to results from a comprehensive, in-depth Nielsen study of consumer interaction with music in the United States, the Music 360. The new Nielsen report offers insights on all aspects of music consumption including listening and purchasing behaviors; music discovery; live events; the use of social networking and mobile music apps; as well as how the economy is affecting music sales.

"The accessibility of music has seen tremendous expansion and diversification," said David Bakula, SVP Client Development, Nielsen. "While younger listeners opt for technologically advanced methods , traditional methods of discovery like radio and word-of-mouth continue to be strong drivers. With so many ways to purchase, consume and discover great new music, it's no wonder that the consumer continues to access and enjoy music in greater numbers."

The following is a small sampling of insights included in the Music 360 report:

Radio is still the dominant way people discover music
* 48% discover music most often through the radio
* 10% discover music most often through friends/relatives
* 7% discover music most often through YouTube

More teens listen to music through YouTube than through any other source
* 64% of teens listen to music through YouTube
* 56% of teens listen to music on the radio
* 53% of teens listen to music through iTunes
* 50% of teens listen to music on CD

Positive recommendations from a friend are most likely to influence purchase decisions
* 54% are more likely to make a purchase based off a positive recommendation from a friend
* 25% are more likely to make a purchase based off a music blog/chat rooms
* 12% are more likely to make a purchase based off an endorsement from a brand
* 8% of all respondents share music on social networking sites, while 6% upload music.

Music player apps are most prevalent, followed by radio and music store apps
* 54% have music player apps on their smartphones
* 47% have radio apps on their smartphones
* 26% have music store apps on their smartphones

Males purchase rock music most often, while females prefer top 40
* 38% of males purchase rock most often
* 15% of females (compared to 9% of males) purchase top 40 most often

Digital music is seen as a slightly better value than a physical CD
* 63% of purchasers identified digital albums as a very or fairly good value
* 61% identified digital tracks as a very or fairly good value
* 55% identified physical CDs as a very or fairly good value

Younger consumers who do buy digital tracks, are more likely to purchase new music immediately after its release
* 33% of teens purchased a digital track within one week of release
* 21% of persons 18+ purchased a digital track within one week of release
* 36% of teens have bought a CD in the last year; 51% of teens have purchased some kind of music download

18-24 year olds are most likely to attend a music event (among those who attend any type of live event)
* 7% attending once a week or more
* 30% attending once a month

Although 18-24 year olds attend more live events, teens are more likely to purchase T-shirts and posters while there.
* 54% (compared to 46% of 18-24 year olds) of teen attendees purchase concert tees
* 14% (compared to 7% of 18-24 year olds) of teen attendees purchase concert posters

Listeners enjoy hearing movie soundtracks over music related TV shows or video games
* 42% enjoy hearing music via music related TV show
* 59% enjoy hearing music via movie soundtracks
* 28% enjoy hearing music via music related video games

Older consumers have decreased their spending the most during the current economy
* 41% of respondents 55+ reduced their spending to a large degree
* 39% of respondents 45-54 reduced their spending to a large degree
* Only 28% of respondents age 25-34 reduced their spending to a large degree




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