Global Digital Music Market to reach $9 bn

South East Asia, India and Africa to drive growth

digital-musicThe global digital music market is all set to touch $9 billion by end of this year thanks to the increasing adoption of smartphones and tablets. A joint study by Mahindra Comviva and research agency Ovum revealed that the digital market had grown 9% in 2012 and will touch $ 9 billion by 2014. The study says the maximum growth is expected from markets like South East Asia, India and Africa where the smartphone growth is pegged at 20% CAGR. The growth of the digital music market is also fueled by the expansion of international and regional music brands in the above markets.

The study by Mahindra Comviva and Ovum surveyed nine markets and trends like the uptake of digital music in terms of adoption rates; devices used to consume music services and segregation of listeners and suggested target approach.

Commenting on the latest trends in the mobile music industry, Atul Madan, Head of Digital Services, Mahindra Comviva said, “The music industry is witnessing dynamic changes and consumption patterns are shifting, driven by the increasing adoption of smartphones. The study reiterates our belief that the future of digital music will be based on enhanced engagement, 360 degree music experience and addressing the needs of price sensitive markets. Localized and customized content will play a greater role in enticing consumers.”

In all those nine markets the share of devices used for listening, purchasing or downloading music has changed dramatically in 2013, as compared to 2010. The use of computers to listen to digital music has dropped significantly by 14% points with mobile and tablets together up 15% points, emphasizing the importance of mobile for reaching lean-back listeners.

The Comviva and Ovum study on digital music also suggests that there is a huge opportunity for operators when it comes to offering personalized music packages and targeted music services that will help reduce churn, drive subscription and increase revenues.

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