Stat Of The Week: Less than half of Scandinavians pay for music streaming – but 69% pay for on-demand TV and movies

 Stat Of The Week: Less than half of Scandinavians pay for music streaming – but 69% pay for on-demand TV and movies

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MBW’s Stat Of The Week is a brand new sequence by which we present why a single knowledge level deserves the eye of the worldwide music trade. Stat Of the Week is supported by Cinq Music Group, a technology-driven file label, distribution, and rights administration firm.


At what level does a rustic turn out to be outlined as a ‘mature’ music streaming market? It’s an more and more important query for the enterprise to reply.

For one factor, the ‘maturity’ of sure markets is an excuse put ahead as to why the streaming income progress of the worldwide trade is now, 12 years after Spotify launched, officially in decline. (And was earlier than the present pandemic.)

For one other factor, Spotify’s Daniel Ek has stated that his firm – which noticed its personal YoY streaming revenue growth fall in Q1 – will solely think about growing its subscription worth on the earth’s most “mature” markets.

Here’s Ek’s quote from SPOT’s Q1 2020 earnings call, when requested if Spotify had any plans to regulate its commonplace Premium worth upwards within the coming months and years: “We have made small pricing experiments in some of our more mature markets… The response from those have been very positive, but it’s not something that we’re focusing on in the short term.”

Those “small pricing experiments” heart on the Nordics and, extra particularly, Norway.

In July 2018, Spotify stated it was conducting a “test” by raising the price of a subscription in Norway by 10%, as much as 109 NOK (circa $11.50) per thirty days. Family and Student plans have been raised by an identical proportion.

That “test”, as MBW suspected on the time, has really turn out to be “not a test” – as a result of those self same worth raises nonetheless apply in the present day, two years on. And proof suggests they’ve had no damaging impact by any means on the lucrativeness of streaming subscriptions available in the market.

Indeed, the IFPI’s newest knowledge reveals that wholesale streaming subscription income in Norway (i.e. the cash paid to file labels and artists) really grew by $11.8m final yr, a much bigger bounce than that seen in 2018 (+$4.5m) and in 2017 (additionally +$4.5m).

The essential level: in 2019, subscription streaming income progress within the world music trade slowed down; but, in Norway, a so-called ‘mature’ streaming market the place Spotify raised its costs two years in the past, subscription streaming progress extra than doubled.

All of which factors to the significance of our unique query: At what level does a rustic turn out to be a ‘mature’ music streaming market?

Thanks to a current YouGov ballot of 1000’s of shoppers within the Nordics, we’ve got our reply.


MBW’s Stat Of The Week: According to YouGov, 49% of residents within the nordics are paying for a music streaming subscription. But 69% are customers of a paid TV/film streaming service.

YouGov’s analysis was primarily based on a survey of over 4,000 shoppers, of numerous ages and demographics, throughout Denmark, Sweden, Norway and Finland. The survey happened between December 27, 2019 and January 9, 2020 (i.e. a superb chunk of time earlier than COVID-19 turned a worldwide pandemic).

The knowledge means that 49% of residents in these nations at the moment are paying for a music streaming service.

In the birthplace of Spotify, Sweden, that quantity is at 52% (up on 51% in 2018) and in Norway – house of the Spotify worth rise ‘test’ – it stands at 55% (up from 50% in 2018).



To flip that round, an estimated 45%, or 2.4m, of Norway’s 5.4m inhabitants nonetheless don’t pay for music streaming. And an estimated 51% of the circa 27m inhabitants of Scandinavia (on this case,  Denmark, Sweden, Norway and Finland) – or 13.8m folks – are at present not paying for a music streaming service.

Interestingly, the quantity of customers of paid-for TV/film providers within the Nordics is considerably increased than these paying for streaming music platforms.

According to YouGov’s numbers, 69% of folks within the Nordics at present subscribe to a paid for TV streaming platform (Netflix, HBO Nordic, Viaplay, C More, Amazon Prime).



Across the nations surveyed, with that approximate 27m cumulative inhabitants, because of this cira 18.6m folks within the Nordics are paying for film/TV streaming – over 5m extra than the quantity of folks paying for music streaming (49%).

It’s price mentioning that Spotify launched within the Nordics in 2008; Netflix didn’t come to Sweden until four years later.

Another attention-grabbing revelation from YouGov’s analysis: 91% of residents within the Nordics say they use streaming providers (whether or not free or paid) to entry music. Yet 75% of residents say they use YouTube to take action vs. 56% for Spotify.


You can learn YouGov’s full survey (which additionally comprises attention-grabbing Coronavirus-related knowledge) through here, and we suggest that you simply accomplish that.

It in the end raises two very pertinent questions for the music enterprise:

  • (i) Does the trade lack the ambition of the film/TV streaming enterprise with regards to chalking off key markets as ‘mature’ (i.e. ‘conquered’) in streaming phrases? After all, extra than half of all Scandinavians nonetheless aren’t really paying for music streaming providers;
  • (ii) Why isn’t Spotify elevating its costs in additional territories exterior Norway? Especially as its ARPU continues to tumble to worrying ranges – and will accomplish that much more because of its new ‘Duo’ tariff for {couples}?

On that second level, think about this: as we’ve talked about, in Norway, subscription streaming income progress doubled in 2019, in line with IFPI knowledge, regardless of Spotify’s ongoing 10% price-raise for Premium.

Over in Sweden, although, the place Spotify continues to value the identical because it has achieved for the previous decade-plus (at 99 SEK per thirty days for a person account), it’s a distinct story.

According to IFPI knowledge, the cash paid to file labels and artists by subscription streaming platforms in Sweden in 2019 grew by $6.7m year-on-year; not like Norway, this was barely down on the streaming progress seen in 2018 (+$6.9m) and considerably down on 2017 ($8.8m).

So would a Spotify worth rise in Sweden, simply because it seems to have achieved in Norway, stimulate significant income will increase for the music trade and its artists?

The CEO of IFPI Sweden, Ludvig Werner, definitely believes so. In an interview with Music Ally in April, Werner stated: “Without a price increase in streaming services, I would guess we have a year or two [of growth left]. With a price increase… I think we can grow for another 10 years.”

He added: “Spotify launched with 1.5m songs; now we have 45m songs, podcasts, video. It’s not a music service any more. It is an entertainment platform, almost. And the prices are very, very low.”


Cinq Music Group’s repertoire has won Grammy awards, dozens of Gold and Platinum RIAA certifications, and numerous No.1 chart positions on a variety of Billboard charts. Its repertoire includes heavyweights such as Bad Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and hundreds more.Music Business Worldwide

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