Reference no: EM133856021
Homework: Streaming in the United States
Streaming services of all kinds have been seeing increasing usage all over the world in the past decade, and for many consumers have become part of everyday life. From online music services like Spotify to VOD market leader Netflix, accessing and enjoying content via streaming is now the norm for media lovers of all ages. In the United States, the number of digital media users has overall increased and the percentage of people without any kind of subscription service is dropping. This growing demand has led to consistent annual revenue growth. Music streaming revenue in the United States surpassed 14.2 billion U.S. dollars in 2022, around double the figure recorded four years earlier. Meanwhile, video-on-demand revenue amounted to nearly 58 billion U.S. dollars and the U.S. market accounted for the majority of global video streaming revenue.
Which are the most popular music streaming services?
Spotify dominates the music streaming business and generally outrank other smaller services in terms of reach, subscriber share, and consumer preference. In 2022, over 90 percent of respondents in the U.S. stated to be aware of the streaming provider, while over 40 percent of consumers have used this service. However, other major players include YouTube Music, Pandora, and Apple Music. Smaller services like Deezer, SoundCloud, Tidal, and Napster have yet to achieve any real influence over the market, with just a handful of consumers using each service. However, in a market which still remains substantially less crowded than the video streaming scene, there is still room for less established music companies to gain a larger following.
Another branch of this industry which is gaining popularity is podcasting. In the U.S., about 44 percent listened to podcasts at least once a month as of October 2022. Thanks to the mobility provided by smartphones and the aforementioned streaming platforms, consumers are streaming more often, and in more places via various devices than ever before. This applies not just to audio and music content but also to video, which has taken the TV and movie business by storm and changed viewing habits forever.
Your homework is choose whether you will analyze the music streaming industry or the SVOD industry. Analyze this industry using Porter's Five Forces. What is the conclusion of your analysis?