27. June 2024
A new study shows a worrying trend in the music habits of Danes. Although a full 94 percent of Danes stream music, only 60 percent pay for music services. In comparison, a full 86 percent of Danes pay for at least one video streaming service.
By 2024, nearly all Danish residents will be digital music consumers. A full 94 percent of Danes stream music, a six percentage point increase from two years ago. Free streaming services have a strong grip on consumers, with only 60 percent paying for a music service and 53 percent of all music streaming time occurring on free services. This data comes from The Polaris Nordic Digital Music Survey 2024, conducted on behalf of Koda and others.
The era for of free music streaming is over.
- Kaare Struve
YouTube and Spotify Dominate Free Music Streaming in Denmark across the Nordic countries, YouTube and Spotify account for over half of the total digital music consumption. In Denmark, the survey shows that most people who stream free music do so via YouTube. On Spotify, the second most popular music streaming service, Danes also predominantly use the free version. Additionally, the survey indicates that the three most popular social media platforms, TikTok, Facebook, and Instagram, also contribute to the growing share of music streaming. On free services, payments to songwriters are at best one-tenth of those from subscription services.
"It is positive that the number of digital music consumers is increasing, but the high use of free services is concerning. As long as there are free alternatives for music streaming that offer nearly the same services as subscription-based ones, it is difficult to convert free users to paying customers, making it hard for musicians and songwriters to receive fair compensation for their work. The era of free music streaming is over," says Kaare Struve, Media Director at Koda.
This skewed distribution in the music streaming market becomes even more apparent when looking at the comparable market for video streaming. A significant difference is that consumers cannot access premium content for free in the video sector.
Key figures
A full 86 percent of Danes pay for at least one video streaming service, and more than half have two or more subscriptions. These figures highlight a clear difference in the willingness to pay between music and video streaming, underscoring the challenge for the music industry.
"The video streaming market clearly demonstrates the economic opportunities that the music industry is missing out on. In the video streaming market, premium content predominates, leading to more paying subscribers and healthier competition in terms of pricing for streaming services. While it may seem optimistic to believe that the music industry can achieve the same level of success, it is uncertain that the music streaming market will correct its obvious market failures on its own. Therefore, as an industry, we owe it to music creators to collaborate and develop concrete solutions that can ensure fairer earnings from music streaming. By shifting free consumption to premium services, we can move closer to a more sustainable music streaming model where artists receive the payment they deserve for their work," adds Kaare Struve.
The Polaris Nordic Digital Music Survey 2024 was conducted by YouGov on behalf of Polaris HUB, which is a licensing collaboration between the Nordic copyright organizations Koda (DK), TONO (NO), and Teosto (FIN).
Download The Polaris Nordic Digital Music Survey 2024
Read more studies and keep up with Koda's work for a stronger music life.
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