Smart Speakers are becoming mainstream devices
Smart Speakers will fuel the next wave of music consumption and market growth according to a report from the BPI and Entertainment Retailers Association (ERA) – Everybody’s Talkin’ – Smart Speakers and their impact on music consumption. Nearly half (48%) of all Smart Speaker owners have a premium subscription to a music-streaming service and with sales of 24m-27m Smart Speakers sold globally in 2017 analysts estimate 55% of US households will own a Smart Speaker by 2022 (175m units in 70m homes).
Smart speaker household penetration is rising rapidly and is set to surge
Between 39m – 47m Americans now have a Smart Speaker in their home, with Amazon’s Echo range thought to have around two thirds of those devices. The UK is not far behind with estimates that 7% of UK households now own at least one Smart Speaker – with 2.8m devices shipped in 2017 (three-quarters of which were Amazon Echos according to Futuresource). Global predictions for 2018 are bullish with forecasts of sales reaching 58m units.
Users of voice-activated technology consume more music
Music is the most popular use for Smart Speakers, with users listening to more audio than they did before purchasing one of these devices. One study found that 34% of Amazon Echo and Google Home owners spend more than four hours a day listening to music, compared to 24% of the general population.
Smart Speakers will drive subscriptions growth as household penetration increases and consumers find it increasingly easy and convenient to sign up.
Recent research finds that 28% of Smart Speaker owners say the device has caused them to pay for a music subscription service.
Future trends for Streaming
“Smart speakers are poised to kick-start the next stage of the music streaming revolution, attracting more casual listeners into subscription services drawn by music as the ‘killer app’ for these devices.” – Geoff Taylor, Chief Executive BPI & BRIT Awards
Smart Speaker use will encourage shared listening and a shift from radio to streaming
Smart Speakers are taking music streaming into a new world of shared listening, away from individual consumption, with multiple-user interaction.
39% of Smart Speaker owners say time listening to the device is replacing time spent listening to AM/FM stations – encouraging a shift away from traditional radio.
Smart Speakers can make music ubiquitous – making music even more accessible and central to people’s lives as the devices proliferate in the home and in cars.
The emergence of programmed playlists on streaming services is making ‘context’ a hot topic – such as music to work-out to, cook to, etc.
This is creating the opportunity to convert radio listeners into paying music subscribers
Streaming subscriptions will be boosted, along with new opportunities to sell physical formats.
48% of Smart Speaker owners have a premium subscription to a music-streaming service.
Smart Speakers could help drive sales of physical music, concert and festival tickets – where a fan likes music they hear, then can easily order a physical copy of a recording or purchase a concert and or festival ticket potentially supporting growth in live music alongside the recorded sector.
