Americans paying for audio subscriptions double since 2015 according to Edison Research in its Share of Ear study. The portion of the American population that is paying for an audio subscription of some kind is now almost half of everyone (47%). This is a measure of people who have answered ‘yes’ to subscribing in their recent survey.
The biggest factor in this is the shift from purchasing physical music product (CDs and Vinyl) which now goes to paid music subscriptions such as Spotify Premium, Apple Music and others. Another growth subscription area is SiriusXM. It is by far the largest single subscription audio product in the US, every year it just keeps adding to its base as new cars get sold.
Even smaller niche products like Audible add to the picture, and the coming wave of podcast subscription products may tempt even more people to start paying for an audio product. The number will almost surely pass 50% of Americans paying something for audio in the next year or two.
The analysts at Edison Research point out that years ago there were almost no subscription services. However, satellite radio and cable transformed what were originally ‘free to air’ radio and TV services into paid for services. Streaming video services such as Netflix have taken this a step further.
They go on to mention Bauer Media, one of the main broadcast radio companies in the UK, which is now offering a subscription service of its own. For a small monthly fee, a consumer can now stream all the Bauer stations with no commercials plus access other exclusive content. They go on to point out that “This seems an ingenious strategy that American commercial radio companies should at least be considering.”
Their conclusion is that as long as the paid subscription services provide value, consumers will continue to pay despite there being plenty of free content in the form of broadcast radio and TV, not to mention illegal downloads.
