A new report on music streaming in the U.K. suggests the market could double in value over the next five years to £1.6b, according to consultants OC&C, who say that key to the growth is new premium tiers and a variety of entry points.
The U.K.’s streaming market was worth £829m in 2018 and, left as it is, the report predicts that number to reach £1b-£1.1b in 2023—a compound annual growth rate of 5%-7%. Inflation aside, that's a value growth rate of 33%, which is in line with a slowing pattern of growth over the last few years (65.1% in 2016, 41.9% in 2017 and 37.7% in 2018).
However, by targeting committed music fans with super-premium and add-on services and finding ways to tempt current non-subscribers, the report says the market could grow to a range of £1.25b-£1.6b. That's a compound annual growth rate of 12%-18%, and a value growth rate of up to 93% (which is just under the 104% rise in value streaming has experienced in the U.K. from 2016 to 2018).
The Entertainment Retailers’ Association commissioned the report compiled by OC&C, who have expertise advising on subscription models in sectors like mobile telephony, gyms and hotels.
