The Rise Of Digital AgeApril 26, 2017 / No Comments
Two very interesting reports have emerged, which clearly showcases the dominance of digital over television.
While more and more people are now looking forward to watching TV shows on personal computers, mobile devices, thereby ditching television as the medium; 50% of all revenues for the music industry is now coming from online streaming.
Does this mean that TV as the platform is now dying? Will digital take over music industry forever?
TV Viewership Declines As Digital Mode Takes Over
As per a research by Accenture, more and more people are now comfortable watching TV shows on their own personal computers and mobiles, rather than on TV itself.
This holds much importance, as for the first time, digital is now extracting TV’s hardcore users, and destroying a traditional market.
As per the findings of the report, wherein 26,000 consumers across 26 countries were surveyed, only 23% of the respondents wish to view TV shows on TV now, down from 52% last year.
Some major highlights from the report:
- 42% said they will watch TV shows on PV, laptop, up from 32% last year
- 13% said they will watch TV shows on mobile, up from 10% last year
- 19% said they will watch sports matches on TV, down from 38% last year
- Only 10% said that they will watch TV shows on TV, down from 47% last year
- 33% said they will watch news clips and other videos on their phones, up from 28% last year
- Only 5% said they will watch short video clips on TV, down from 16% last year
Accenture India Managing Director Aditya Chaudhuri said, “Over the past one year we have seen a surge in the launch of over-the-top services, both by global and Indian media, and entertainment companies. The ever increasing penetration of the internet mainly through mobile, backed by Wi-Fi and broadband has helped this wave.”
Online Streaming Pushes Music Industry’s Fastest Growth in 20 Years
While Internet and Digital is changing people’s TV watching habit, online streaming has revolutionised the music industry, globally.
Right now, due to increased online streaming of on-demand content, the music industry is experiencing its fastest growth in the last two decades.
In 2016, music industry grew by 5.9%, which has been hailed as the fastest growth in the last 20 years, ever since industry body International Federation of the Phonographic Industry (IFPI) started tracking the market in 1997.
And it has a direct effect on the revenues as well. 50% of all revenues generated today by the music industry is coming from online streaming and other digital modes. In the last 15 years, revenues from digital modes increased by 60%, as piracy dropped, and people started paying for music.
Overall, the industry body recorded revenues of $15.7 billion in 2016, which was powered by 112 million users of paid music streaming subscriptions, globally.
This stat is pretty interesting, because in the same period, download music from the Internet dropped by 20.5%, and physical sale of records dropped by 7.6%.
Frances Moore, the CEO of the IFPI said, “As an industry, we’ve had years of investment in innovation to make (growth) happen, and we’re starting to see the shift … from adapting to the digital age, to actually driving the digital age,”
In our exclusive interview of Gaana.com COO Prashan Agarwal, he had stated that online curation of music is replacing local curation of music, and this was the trigger which is pushing online streaming growth in India.
It seems that this statement has just been verified by IFPI now.