Digital Media: Access vs. Ownership

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There has been an apparent change in media consumption. Our film examination has shifted from shopping DVDs to streaming Netflix, and a song listening has left from shopping CDs to streaming Spotify.

Consumer habits are changeable from tenure to streaming over a web. Here’s a demeanour during how fast this change is happening.


In 2015, streaming revenues were some-more than $2.4 billion, flitting a $2 billion symbol for a initial time ever. That year, streaming was one-third of U.S. song revenues (34.3%). The residue of a revenues were from digital download (34.0%), earthy (28.8%) and sync (2.9%).

Revenue from streaming is a flourishing shred of a market:

  • 2010: 7%
  • 2011: 9%
  • 2012: 15%
  • 2013: 21%
  • 2014: 27%
  • 2015: 34%

Worldwide, a series of people profitable for song subscriptions is growing. In 2013, it was 28 million, and in 2015, it was 41 million people. Within streaming revenues, paid subscription services are a quickest-growing difficulty of services. Paid subscription (Ex: Spotify subscription, Apple Music)

  • 2013: 639 million
  • 2014: 800 million
  • 2015: 1.2 billion

Sound sell distributions (Ex: Pandora, SiriusXM)

  • 2013: 590 million
  • 2014: 773 million
  • 2015: 803 million

On-demand, ad-supported (YouTube, ad-supported Spotify)

  • 2013: 220 million
  • 2014: 295 million
  • 2015: 385 million

Why people are streaming:

Streaming is changing listening habits, permitting users to simply try new song and enabling digital algorithms to turn personalized DJs that suggest new artists. Streaming song is permitted wherever we are — during a office, in a automobile or during a gym. Bandwidth restrictions (whether around mobile information caps or Wi-Fi) are not as most of an inhibitor as they once were, creation streaming viable, easy and affordable.


60% of U.S. broadband households allow to a video streaming service. The sales of DVDs and Blu-ray discs are decreasing, and subscription services are gaining some-more customers.

U.S. sales of DVDs and Blu-ray discs:

  • 2015: $6.1 billion
  • 2014: $6.9 billion
  • 2013: $7.8 billion
  • 2012: $8.5 billion
  • 2011: $8.95 billion

Paid subscriptions (streaming and disc)

  • 2015: $5.7 billion
  • 2014: $4.8 billion
  • 2013: $4.2 billion
  • 2012: $3.6 billion
  • 2011: $3.3 billion

Netflix is a tip video streaming use provider with 53% of all subscribers. Amazon Prime follows with 25% of all subscribers, and Hulu has 15%. Interestingly, 40% of households that tide have mixed streaming services.

Netflix has 83 million subscribers (42% from outward a U.S.). Subscribers watch an normal of 1.8 hours a day, and 70% of users binge-watch shows.

Why people are streaming:

Consumers are prioritizing on-demand calm over a aloft peculiarity of a Blu-ray picture. Algorithms are assisting business simply learn or hunt for calm that will seductiveness them, creation a routine of finding calm as beguiling as examination it. “Binge watching” has turn a materialisation now that users have easy entrance to a outrageous volume of content. Avoiding promotion is a poignant conversion factor, with investigate display that Netflix users equivocate 160 hours of ads per year.

Changing Values

Consumers are increasingly changeable their spending toward entrance rather than ownership. And it’s function in some-more than only media choices; we see companies like Zipcar and Airbnb also abounding in a new “sharing economy.”


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