The impact of social and digital media technologies on consumer behaviour in the music industry
Original infographic
Commentary
Explanation of the infographic
The infographic puts emphasis on the gross value added of the music industry on the economy of the UK as of 2018 at GBP 4.5 billion(Ukmusic, 2018). The income generated by the music industry was GBP 839.4 million whereas the digital music industry in the country has gained the preference of the customers with GBP 431 million income(Statista, 2018).
The customers have responded positively to the digital and social media trends in the UK’s music industry. The pattern of the discovery of the music of the consumers has changed in addition to their habit of listening and purchasing music.
Digital distribution of music has enhanced consumer convenience and hence they are able to have greater access to music at the tap of their smartphones. The social media has compounded the sales of music by distributing and popularising user-generated content which engages the users.
Interpretation of the key trends
The consumption of music has changed in the UK as the consumers have shifted towards digital platforms and discovering, purchasing and listening to music which has declined the sales of physical albums(Myrthianos, et al., 2016).
YouTube, apple music and Spotify continue to dominate the digital music streaming domain in addition to Vinyl. The sales of digital music have overtaken the sales of music CD’s way back in 2012 in the UK and the retail value of digital streaming has increased to GBP 418.5 as of 2016 which is a 65% increase than the previous 2 years(Thecreativeindustries, 2019).
The music streaming services have contributed to the highest number of sales in the UK as of 2017 as they have gained more popularity than the physical as well as digital albums. Trends in the infographic suggest that the social media and digital streaming channels continue to impact consumer behaviour as the ease of accessibility and convenience to play music on their smartphones have increased customer adoption.
YouTube has been recorded to be most popular amongst the customers for streaming music. There is a sharp decline in the sales of CD’s whereas Vinyl sales have gained momentum in the digital age.
Business implications
Digital technology has made it easier to produce and distribute music amongst the consumers thereby being beneficial for the music production companies. The social media has enables the marketers to promote music online and create a massive demand in the consumers thereby influencing their behaviour to purchase(Paterson, et al., 2016).
The fil sharing websites also actively promote new and upcoming music which also improves distribution to the customers and provides an easy way to earn revenue by improving the accessibility of the customers. The scope of cross-cultural integration has also taken place as a result of the digitalisation of music promotion and distribution.
However, the rising instances of music piracy over the internet is a matter of concern for the businesses as it has the scope to reduce premium subscription thereby hampering profits
References
Myrthianos, V., Vendrell-Herrero, F., Bustinza, O. & Parry, G., 2016. How does music as a digital service affect consumer attitude and behaviour. Universia Business Review, 49(1), pp. 182-199.
Paterson, J. et al., 2016. Interactive digital music: enhancing listener engagement with commercial music. Innovation In Music II, 1(1), p. 22.
Statista, 2018. Music industry in the United Kingdom – Statistics & Facts. [Online]
Available at: https://www.statista.com/topics/3152/music-industry-in-the-united-kingdom-uk/
[Accessed 23 Dec 2018].
Thecreativeindustries, 2019. FIVE REASONS TO WORK WITH THE UK MUSIC SECTOR. [Online]
Available at: https://www.thecreativeindustries.co.uk/industries/music/music-why-the-uk
[Accessed 23 Dec 2019].
Ukmusic, 2018. MEASURING MUSIC 2018. [Online]
Available at: https://www.ukmusic.org/news/measuring-music-2018
[Accessed 23 December 2018].
