Google Play/YouTube Music news streaming to shake up media

The prospect that Google Play Music and YouTube Music streaming music services will introduce news content into their streaming services in the near future is another challenge set to face incumbent media players in the TV, radio and traditional newspaper channels.

Over 5.4 million Australians now use music streaming services available via websites or apps with Spotify the clear industry leader used by nearly 3.6 million Australians in an average week around four times the size of SoundCloud used by around 900,000 Australians in an average week.

Although Google Play Music, used by over 660,000 Australians, and the newer YouTube Music, used by nearly 600,000 Australians, do not capture a huge market share at this time there are clearly strong prospects for growth as both services introduce news capabilities. At a combined level over 1.1 million Australians use either Google Play Music or YouTube Music in an average week.

Triple J listeners more likely to use Music Streaming Web/Apps than others

Analysing the major TV and radio networks shows that Triple J is the radio network that potentially has the most to lose from a more capable streaming service with 41.6% of Triple J listeners also using music streaming web/apps.

Over 40% of listeners to Nova stations (41.2%) also use music streaming web/apps while just under a third of listeners to Southern Cross Austereo Group stations (32.7%) use music streaming web/apps.

% of viewers of leading TV & radio networks who use Music Streaming Web/Apps – Dec. 2018

Source: Roy Morgan Single Source: 12 months to December 2018, n=50,853 Australians aged 14+. Note: These visitation figures are not derived from cookies, device counts, impressions or clicks.

Pay TV/SVOD viewers more likely than FTA viewers to use music streaming web/apps

When it comes to TV viewers just over a third of viewers of Pay TV/SVOD (33.7%) also use music streaming web/apps compared to just over a quarter of FTA TV viewers (25.3%).

Viewers of the commercial TV networks are more likely than viewers of the ABC and SBS to use music streaming web/apps led by Network 10 (25.4%) just ahead of Network 9 (25.2%) and Network 7 (24%).

Viewers of ABC TV Network (22.7%) are slightly more likely to use music streaming web/apps than viewers of the SBS TV Network (21.5%).

Michele Levine, Chief Executive, Roy Morgan, says the announcement by Google that it will soon be streaming news via its Google Play Music streaming service presents yet another challenge to the revenue models of traditional media channels including TV, radio and newspapers:

“The announcement by Google that it will soon provide breaking news over its Google Play Music streaming service opens another front in the battle for scarce advertising and subscription dollars between traditional media companies and their newer digital competitors.

“Over 5.4 million Australians (27%) used music streaming web/apps in an average week in 2018 and this huge audience is set to be targeted by Internet giant Google with a range of new offerings – including breaking news – provided in the near future through its streaming services.

“Although the most popular music streaming app Spotify, used by over 3.5 million Australians (17.5%), has not announced any plans to include a focus on breaking news and current events.  Google Play Music separately reach around 600,000 Australians and their combined audience is now over 1.1 million and growing strongly.

“Some media channels will be hit harder than others by news streaming services. Just over a third of Australians who watch Pay TV/SVOD services (33.7%) use music streaming web/apps while of the commercial TV networks. Network 10 (25.4%) has the highest penetration of music streaming services amongst its viewership.

“The more youth oriented radio networks such as Triple J (41.6% use music streaming web/apps) and Nova (41.2%) have a far higher degree of crossover than stations which appeal to older demographics such as ABC Local Radio (21.9%).

“When it comes to newspapers whose main function obviously is to provide news some individual newspaper brands are more exposed than others. Just over 30% of Australians who visited a listed newspaper site in an average seven days also use music streaming web/apps.

“Digging deeper into the figures shows that nearly a third of readers of the print or digital versions of the AFR, The Age, The Australian and the SMH) also use music streaming web/apps. In contrast around a quarter of print or digital readers of the Daily Telegraph, Herald Sun, Courier Mail, Adelaide Advertiser and West Australian also use music streaming web/apps.”