Mexico. The cultural and creative industries (CCIs) have proven to be an engine for growth and development, ranking among the top four sectors of the global and national economy with the greatest economic contribution.
However, since the beginning of the pandemic in 2020, they were among the first and most strongly affected and even their operation canceled, due to the suspension of mass events and the closure of cultural venues.
The impact that this industry has suffered is of the utmost importance, because according to UNESCO data, it generates income equivalent to 2.6% of the world's wealth and employs more than 30 million people. Only those events that have managed to be broadcast over the internet have managed to cope with this crisis.
Precisely, a market that registers a significant boost is that of the consumption of cultural and creative audio content via streaming.
In this regard, music streaming is the main way for the consumption of these in pandemic times and in 2020 it registered an annual growth of 10.0%, reaching an accounting of 57.1 million listens, a figure that represents 63.4% of Internet users in Mexico. The proliferation in the preference and supply of platforms responds to the growing demand and use of digital services, derived from the massification in the adoption of connectivity equipment and the effective interoperability of these platforms.
Another recent phenomenon observed in this market is the specialization of platforms for a segment of consumers looking for high-fidelity audio and/or exclusive content. Undoubtedly, these trends are a sign of a market that has consolidated and has greater attention from creators, consumers, suppliers and regulatory bodies.
The migration of creators to digital media due to COVID-19 points the way for times to come in which streaming platforms, internet providers, equipment manufacturers, advertising companies, among many other players, must converge to create an ecosystem conducive to innovation and the development of culture and creativity.
Digital Music Access Habits
The consumption of music content has intensified in the last year, as a result of the confinement and the greater availability of time for leisure at home. This is how the frequency of access to digital music platforms by subscription increased 4.9% in 2020, to reach an average of 5.6 days a week, such that 71% enter every day, while 20% do it twice a week, 8% only once a week and 1% every two weeks.
On the other hand, when segmenting by type of devices used to access these applications, smartphones stand out, with 97% preference, followed by computers (desktop and laptops) with 33%, Smart TV with 25%, tablets with 23% and iPod even with 6%.
Clearly, the massification in the possession of mobile devices among Mexican users, as well as their easy accessibility places them as the one with the highest preference to make use of these platforms.
Digital Platforms Market Share
Spotify continues to hold the first place as a platform for accessing digital audio content, accounting for more than four-fifths of total subscriptions (80.7%). This is explained by its abundant offer of content, the possibility of listening to music with ads, as well as attributable to its incursion into the market in its early stage of development.
It is followed by Google Play Music/YouTube Music with 5.1%, Apple Music with 4.5% and Amazon Prime Music with 2.8% of total subscriptions, and the rest (6.9%) divided among a wide variety of players.
This variety of platforms and the diversity of audio content are proof of the scope and growth of the digital industry, in particular in terms of privileging access to content with rights and being the main showcase for a growing group of creators and artists. If previously the big music producers selected these and their contracting conditions, today platforms such as Spotify have democratized their access and use to be able to publicize their content.
Moreover, it is not only musicians who interact with these large streaming companies, but journalists, commentators, comedians, economists and other players have ventured through podcasts to create content of all kinds. Also in pandemic times, podcasts register a remarkable growth.
This industry like many others that participate in the digital ecosystem have gained in the deepening and expansion of their services during the period of the pandemic.
This intensification in the launch and consumption of creative and cultural content through digital platforms has brought closer to levels of advanced maturation to these markets that have been consolidated as the main access route for consumers around the world.
Text written by Daniel Cabrera of The Competitive Intelligence Unit, CIU.
