The company J'son & Partners Consulting presents a brief summary of the research "Digital audio content market in Russia, 2009-2013". Market structure, delivery channels and audio content consumption model were considered along with objective market indicators. The geography of this study covers global figures, markets of the leading countries and Russia.
Global digital audio content market
According to J'son & Partners Consulting, in 2011, the market of digital audio content in the world grew by 7% to $ 6.3 billion USD. The country covered in the research - the U.S., Japan, South Korea, the United Kingdom - account for about 70% of the world audio content. Russia's share in the global market is insignificant and makes up less than 1%.
The sales share of audio content for mobile phones accounted for about 68% of the total market audio content in the world. The dominance of digital audio content sales via mobile networks is caused by the ease of use of audio files on mobile phones, which have firmly replaced music players in the subscribers’ minds. To date, it is almost impossible to find a mobile terminal without the support of music playback.
Furthermore, it can be already pointed out that there is a tendency to the increase of audio content online sales segment in the world, as the share of this channel increased by 2% in 2011.
The greatest contribution to the development of digital audio content sales made through the Internet was made by the multimedia service Apple iTunes, through which have been sold more than 10 billion pieces of audio files since 2003. In 2011, the share of Apple iTunes accounted for 70% of all music downloads in the U.S. It is natural, that the market of digital audio content sales is more developed in the countries in which the service is available from Apple. The main competitors of Apple in the market of digital audio content are the companies Amazon, 7digital, HMV and Tesco.
Digital audio content market in Russia
According to J'son & Partners Consulting estimations, in 2010 the volume of music sales through the Internet has increased by 207% compared to 2009, the main reason for this growth was the launch of content stores from operators.
The largest player in the market of mobile audio content in Russia in the first half of 2011 was the telecom operator MTS, also MTS was the largest player in the Russian market of digital music distribution through the Internet as for the first half of 2011 due to the project Omlet.ru. The closest competitor of Omlet.ru is the project Trava.ru of the operator "MegaFon". However, business audio content sales can’t be referred to highly profitable. At the end of 2011, MTS decided to stop "Music" section on the portal Omlet.ru, which in 2012 will lead to a decline in sales in this segment.
In the general structure of the Russian digital audio content sales market the biggest share (99%) is taken by the mobile content sales. According to J'son & Partners Consulting estimations, sales of music via mobile channels grew in 2011 by 10% compared to 2010. In 2012, the analysts expect the increase in promotion services activity of mobile music by the old market participants (operators) the entry of new participants is possible as well.
Drivers and barriers of audio content market development in Russia
The market of digital audio content in Russia is not expected to grow actively up to 2013. The volume of audio content sales through the Internet will not exceed 3 million USD by the year 2013 considering current barriers, the prospects are assessed as moderately optimistic.
J’son & Partners Consulting identifies the following drivers and barriers of the market.
- Availability of a wide range of music in the public domain is limiting the audience in its legal use.
- The low purchasing power in comparison with North America and Western Europe - the largest markets of digital audio content distribution.
- The cost of music distribution rights at music majors remains high for the Russian market.
- Despite the growing popularity of online payments there is a problem of low penetration of bank cards, as well as fears of Russians to use them to pay for online purchases.
- The growth of users both of fixed and mobile Internet services in Russia.
- Increased availability of mobile platforms Android, iOS, Windows Phone has a positive effect on the development of mobile services, namely, customized applications for access to music on the phone.
- Positive trends in music majors policy. Major labels are ready to discuss new models of collaboration and music sales.
- The growth of popularity of electronic payment systems and online payments in general.
The contents of the full report «Digital audio content market in Russia and the world, 2009-2013»
1.1. Digital audio content ecosystem
1.2. Production, distribution and consumption of audio content. Value chain
1.3. Preconditions for the development of digital audio content in Russia and the world
2. Audio content delivery channels and patterns of consumption
2.1. Internet platforms
2.2. Mobile content
2.3. Digital broadcasting
3. The global market of digital audio content 2009-2013: size and forecast of the market growth, market structure, audience
3.1. Market size and audio content audience in the world
3.2. Audio content market in selected countries
3.3. Audio content market in Russia
4. Devices for digital audio content access
4.1. Mobile phones market
4.2. Smartphones market
5. Major digital audio content distributors in Russia and the world (case studies)
This information bulletin has been prepared by J'son & Partners Consulting Co. We make every effort to ensure that information and forests contained in our market reviews are accurate and up-to-date. J'son & Partners Consulting reserves the right to revise the data following the publication of new official information by the companies.