Mahindra Comviva, a global provider of mobility solutions and Ovum Consulting, released a research study on Digital Music Market today. The study states that the industry grew by around 9% in 2012 and will grow past $9 billion worldwide in 2014. It shows future trends on the consumption of digital music in terms of adoption rates and devices used to consume these services.
The study predicts that the emerging markets in Asia-Pacific are expected to approach $450 million while Latin America will likely top $200 million in trade value in 2014. The research firm expects that strong growth is driven by the expansion of international and regional music brands as well as active smartphone growth in South East Asia, India and Africa, all topping 20% CAGR (Compound Annual Growth Rate).
"The digital music market in 2012 has grown around 9 percent on the previous year and is expected to top $9 billion worldwide at retail by 2014," the study says.
"The music industry is witnessing dynamic changes and consumption patterns are shifting, driven by the increasing adoption of smartphones. The future of digital music will be based on enhanced engagement, 360-degree music experience and addressing the needs of price-sensitive markets," Mahindra Comviva Head Digital Services Atul Madan said.
The firm conducted a survey across nine markets surveyed (both emerging and developed), and found that computer share has dropped significantly by 14% points while mobile and tablet shares have increased by 15% points, emphasizing the importance of mobile for reaching lean-back listeners. With more than 1 billion smartphones shipped in 2013, this creates a huge opportunity for telecom operators offering personalized music packages to increase their revenue.
"There is a huge opportunity for operators when it comes to offering personalised music packages and targeted music services that will help reduce churn, drive subscription and increase revenue," the report stated.
Source: Mahindra Comviva