Mexico. The preference of a platform for consuming musical content has had a remarkable evolution. Starting with the distribution of these in physical formats (Vinyl, Cassettes and Discs) to then be replaced by the digital format (purchase-download and transmission or streaming).
The platforms that provide us with the Internet streaming service are called Over-The-Top (OTT), which allow the user to enjoy millions of songs for a monthly subscription or for free (with ads), and can be used on a wide variety of both mobile and fixed devices (computers, smartphones, tablets, video game consoles, digital receivers or Smart TVs).
Access Devices
In Mexico, they accounted for 14.4 million OTT Audio subscriptions as of the third quarter of 2018. These are used by 57.2% of Internet users in the country, which means that the number of users of these platforms amounts to 47.3 million people.
In terms of access, smartphones are the preferred devices for the use of these platforms (98% of users), attributable to the massification of these devices and the decrease in the price per MB of download on mobile networks. These factors have favored the transmission of music content anytime, anywhere, unlike other devices that require a WiFi connection, such as PCs (24%), tablets (15%), iPod (8%) and smart TVs (6%).
Access Platforms
Various factors determine the preference of consumers between one or another platform, for example, variety of catalog, the quality of audio they offer, ease of access on various devices, the age from its introduction into the market, as well as the simplicity of the platform.
Spotify is the platform that has the largest number of users in the country, with 89.1% of the total market, offering a free modality with ads, as well as a premium monthly payment with affordable family packages in which it grants full and independent access to each user. On the other hand, iTunes/Apple Music, Google Play and YouTube Music despite offering a larger library, have not achieved a relevant impact by not offering free schemes.
Due to the diversity of platforms, the lower cost of mobile data and the incorporation of monthly subscription as part of the offer of operators, the frequency and use of OTT audio platforms in Mexico has increased significantly, such that users use these platforms, on average, 5.9 days a week.
Thus, the reproduction of audio over the Internet has consolidated its position in the market as a platform for access to musical content, by radically transforming the way we consume music. However, its effective massification will depend, to a large extent, on the widespread adoption of connectivity among the population, on the quality and sufficient capacity of broadband to effectively access these contents, as well as on sufficient purchasing power and affordable price level in access to platforms.
Text written by Álvaro Carrillo of The Competitive Intelligence Unit.
