As the slow march toward streaming saturation continues in developed markets like the U.S., music streaming services are shifting their focus to bolstering profitability and identifying ways to better understand and monetize their audience. With initiatives including subscription price increases and the introduction of new features, the Luminate 2024 Midyear Music Report details the importance of various DSP features to different audiences.
Given these conditions and the wider inflationary environment, it’s important to recognize how the industry’s recent cost hikes have impacted the intended subscription behavior of consumers. For example, Luminate’s Music 360 study found female paid streamers to be more price-conscious than their male counterparts, finishing +51% more likely to cite the expensive nature of their subscription as a reason for their probable churn.
With such serial turnover, finding an edge by boosting loyalty among current subscribers and winning over “subscription nomads” has never been more crucial. In the chart below, Luminate identifies the areas that may be most effective in helping nudge those “up-for-grabs” paid streamers toward their next destination.
The data above illustrates that broader considerations like price and catalog still matter; however, it’s the deeper engagement features — livestreamed concerts, exclusive artist content and news and additional non-music related content — that really move the needle and resonate with this “opportunity” audience compared to other premium-tier users.
As the industry pivots toward profitability, leveraging data-driven insights will become more important than ever before. Understanding what truly matters to subscribers — from price sensitivity to exclusive content — can be the key to turning subscription nomads into loyal customers. By staying attuned to these shifting dynamics, stakeholders can make informed strategic decisions that not only keep pace with the market but also set the rhythm for future success.
To learn more about music’s most impactful trends through the first half of 2024, read our midyear report here.
