Testing the viability of I Am Plus streaming products
Revenues in the recorded music industry are suffering due to piracy causing music prices to be slashed (particularly online) and, as a result, consumers’ perception of the value of music has been damaged. The concept of streaming, however, provides a viable alternative to illegal downloading and other freemium services whilst satisfying customers who are unwilling to pay for music.
The next generation of music fans have grown up on an ethos of “free” and therefore have come to expect it. We aimed to find out what streaming services, and price plans, might be appealing to music consumers, and whether there is demand for new streaming devices.
How we did it
Using nationally representative data across the UK and USA (2013) we were able to determine that almost a third of the UK, and almost half of the USA, were streaming audio, and just 5% of those streaming in the UK were paying to do so. The research also indicated which particular streaming services were most popular in both territories.
To investigate the market potential for I Am Plus streaming products (both the Puls smartwatch and wireless speakers), we conducted a bespoke survey amongst 1,100 non-paying music streamers across the UK and USA. We also went on to determine whether they would be likely to pay for streaming. The findings also revealed which additional paid-for streaming features might appeal to consumers of music streaming.
The research demonstrated that the I Am Plus watch and wireless speaker system were highly viable propositions with huge market potential, and also indicated that the association with artist Will.i.am had a positive effect on brand perception in both the UK and USA. It also reinforced the importance of offering a free music streaming service.