Music streaming subscriptions failing Over-35s

20 May 2016 - Press release

·         Now 10 years old, subscription based music streaming has attracted many Millennials but failed to find favour with Generation X and Baby Boomers

·         Less than 6% of Generation X and, less than 3% of Baby Boomers have adopted streaming subscriptions

·         Millennials are three times more likely than Generation X, and five times more likely than Baby Boomers to use a music subscription service

Independent research revealed today by Electric Jukebox shows Generation X consumers aged between 35 and 55 and Baby Boomers aged 55+ are being left out in the cold by music streaming services.

The report, carried out on 2000 UK internet users by YouGov on behalf of Electric Jukebox*, found that 18-24 year-old Millennials are the only group who are really being engaged by subscription based music streaming today.

“Our research finds the older you are, the less likely you are to stream music and that if you’re over 35 you’re very unlikely to be a subscriber,” said Electric Jukebox CEO Rob Lewis who commissioned the YouGov research. “The music streaming industry is missing a huge trick as the over 35’s love music, and have the most time and money to spend on it, but are the least engaged by subscription based streaming.” 

“The problem with music streaming, in its current guise, is that it is designed only for Millennials which represent only a quarter of the UK population. The complexity of existing services, combined with monthly subscription commitments, has created a black hole for alienated Generation X and Baby Boomers who are twice the size of the Millennial market and have far more spending power.” 

“Young Millennials are the only social group who tolerate registering personal details, downloading apps, paying for subscriptions and are happy to listen to music on PCs and mobiles. The older generations expect something simpler and easier. They want the convenience and simplicity of the CD.”

“If we can make music streaming more appealing for Generation X and Baby Boomers, new artists and the music industry at large would see streaming in a much more favourable and profitable light.”

“We’ve created Electric Jukebox to make music streaming fun and accessible to everyone. It’s the ultimate music jukebox for the home which doesn’t need a subscription or the use of PCs or mobiles. It makes music streaming as easy as playing a CD.”

Key research findings: 

Music streaming – preserve of the young

YouGov research commissioned by Electric Jukebox shows:

- 16% of Millennials have music streaming subscriptions

- 6% of Generation X consumers have music streaming subscriptions

- Just 3% of Baby Boomers have music streaming subscriptions

. Overall, just 7% of female and 8% of male internet users subscribe to music streaming services 

-  Millennials are three times more likely to have a music subscription today than Generation X consumers and five times more likely thank Baby Boomers.

- Across all demographics surveyed, the cost and commitment of monthly subscriptions are cited as the top reasons why consumers are not paying for music streaming.

 CD/Radio is easier than streaming – unless you’re under 25

- Overall 42% of UK respondents agree CDs and radio are easier than music streaming, while just 18% think streaming is easier

- Only 8% of Baby Boomers and 17% of Generation X consumers thought music streaming was easier than CDs and radio

- On the other hand, 44% of 18-24 year olds thought streaming was easier than CDs, and 27% thought CD’s and radio were easier. 

Playing music at home – radio rules

- Generation X consumers and Baby Boomers still favour traditional music playing devices; radio and Hi-Fi and TV to listen to music over listening on PC and mobile

- 51% of Generation X consumers and 65% of Baby Boomers listened to music on the radio compared to 43% and 53% on Hi-Fi and 36% and 33% on TV

- 32% of Generation X consumers listened to music on PC and 24% on mobile while 28% of Baby Boomers listened on PC and just 9% on mobile

- 66% of young 18-24 year-old Millennials listen on PC compared to 55% on mobile and 34% on radio - 44% of older 25-35 year-old Millennials preferred listening on mobiles over 39% on PC and 37% on radio.

Attracting the non-subscribers – no subs

The question as to how to make on-demand streaming attractive to those who don’t currently subscribe varied by generation. Generation X and Baby Boomers ranked the lack of a monthly subscription requirement at 51% and 45%, and simplicity and ease of use at 48% and 44%.