Report: Spotify Is Huge In Target Demo, Radio Losing TSL

AM-FM Radio Is Losing Listening Share

Morgan Stanley released some data around Spotify listening cmpany to AM/FM radio in the U-S.  The data shows a strong AM/FM radio, but it also eveals how much Spotify and other similar services are eating out of younger audiences.

Radio futurist and editor of Podnews James Cridland notes Morgan Stanley are a major shareholder of Spotify, so it’s logical it's in their interest to talk Spotify up.  

The Morgan Stanley data reveals reported listening share for leading digital platforms increased while broadcast radio fell. SiriusXM (paid), Spotify (freemium), and YouTube (free & paid) saw increases in listening share YoY. 

The increases largely came out of AM-FM radio, which saw its reported listening share fall 300 bp to a still leading share of 36%. 

Listening behavior varies widely by age with Spotify garnering the largest reported listening share among 18-29 year olds at 21%, more than 2x Apple Music’s reported share. This compares to over 50% share for broadcast radio among 65+, for example. 

While Morgan Stanley estimates that ~50% of the US smartphone market subscribes to a paid streaming service today, the challenge for Spotify and other paid services is migrating free users to pay. 

While YouTube’s reported listening share is similar to Spotify’s, its 60% reach among the survey highlights the popularity of ad-supported music streaming on the world largest content platform.