Study: Listener Growth For Streams Likely To To Slow

Despite recent year-over-year listener growth, streaming services ranks fourth out of six essential channels in frequency of use or ‘share of ear,’ according to a new study released by Clear Voice Research.

Study results also indicate about two-in-three US consumers (67%) listen to the first-ranked channel, traditional AM/FM radio, on a daily basis, while only about one-in-three (31%) listen daily to streaming services. Advertisers should take these figures into account when making their media buys.

Highlights:

• Barring further innovation that allows for greater customization and/or expanded use scenarios, listener growth for streaming services will likely slow in the coming year. The vast majority of US consumers (96%) are aware of streaming services and many have already made up their minds about whether to use one or more of them. About one-in-four consumers (28%) have considered but never used a service, meaning they’re looking for an attractive come-on or a different type of experience.
• Customization is the key to attracting listeners. The most influential factor in the choice of a streaming service is the degree of customization it offers. The term ‘customization’ here means the ability to configure playlists, to skip disliked songs and to listen to and/or download a wide range of music. Single track digital music represents the ideal in this regard and the closer streaming services can approach it, the better their market performance. So-called hybrid services like iTunes Radio and Google Play that combine personally selected digital music with streaming options have a clear advantage here.
• Ease-of-use is a threshold factor at this point in the market’s evolution. In the early days of a market, motivated consumers are often willing to put up with usability issues in order to realize the benefits of superior functionality. That time has passed for the streaming services market. 
• Consumers will no longer tolerate poorly designed interfaces or unreliable features. There are simply too many acceptable alternatives now.
• Mobility is a critical going-forward factor in the adoption of streaming services. Consumers want the convenience of listening to streaming services anytime, anywhere. Most, however, are limited by the current technology, e.g, few have car stereo systems that can accommodate a smartphone or MP3 connection. Services that break down these barriers will substantially improve their competitive position, in part, by converting consumers who have tried and dropped streaming services and by converting new-to-the-market consumers who remain beholden to traditional radio and other situation-specific channels.