TikTok's Musical Influence: 62% of US Users Pay for Streaming, Shaping Trends and Redefining the Music Industry

‍

TikTok's Musical Influence: 62% of US Users Pay for Streaming, Shaping Trends and Redefining the Music Industry

‍

TikTok is undergoing a transformative phase, positioning itself both as a collaborator with music companies and a contender against streaming and distribution services. A recent market analysis sheds light on why the ByteDance-owned platform has intensified its focus on the music realm, positioning itself as a significant driver of music consumption and expenditure.

The report, commissioned by TikTok and conducted by US market monitor Luminate, delves into data from the US, UK, Germany, Brazil, and Indonesia, along with global data for the period from July 1, 2022, to June 30, 2023. It reveals that 62% of TikTok users in the US subscribe to a music streaming service, surpassing the 43% average among all consumers.

‍

‍

With TikTok boasting 150 million users in the United States as of February 2023, this statistic implies that approximately 93 million US TikTok users are paying for a music streaming subscription. To contextualize, individual streaming services like Spotify, Apple Music, and Amazon Music reported subscriber counts of 44.4 million, 32.6 million, and 29.3 million, respectively, in the US as of February.

The analysis, drawing from Luminate Connect consumption data, Luminate Music 360 Study audience insights, and TikTok engagement volumes, spans markets in the US, UK, Brazil, Indonesia, and Germany, as well as globally. It reveals that around 90% of TikTok users in each market use at least one music streaming service, highlighting the platform's strong association between user engagement metrics and streaming volumes.

Furthermore, TikTok's impact extends beyond digital streaming platforms; the analysis indicates that TikTok users are more likely to spend on music-related purchases off-platform. In the US, 45% of TikTok users purchased music-related merchandise, while 38% attended live music events, both surpassing the percentages for overall music listeners.

‍

‍

The study also positions TikTok users as effective marketing tools for artists, showcasing their higher likelihood to discover and share music compared to users on other social media and short video platforms. For instance, in the UK, TikTok users were 108% more likely to discover and share music than other social media users.

Moreover, TikTok appears to drive the glocalization of music, elevating local artists to regional or global platforms. TikTok users show a stronger preference for international music than the average listener, contributing to the growth of fan bases without borders and the global success of artists across various genres.

‍

‍

Ole Obermann, TikTok’s Global Head of Music, emphasized the platform's impact on the music industry, stating, "Luminate’s findings prove what we had long known: that TikTok is the driving force behind music discovery in the industry, and that TikTok users are active, engaged and highly valuable drivers of music industry revenues."

‍

‍

This study underscores TikTok's pivotal role in shaping global music culture, aligning with its previous claim that 13 out of 14 songs reaching number one on the US Billboard Hot 100 in 2022 were influenced by viral trends on the platform. The data makes it evident why TikTok is intensively developing music-related services, fueling speculation about the platform's potential reinvention as an integral part of the music industry.

Read the full study here!

‍

Source: Music Impact Report, TikTok/Luminate Music Business Worldwide
_‍

‍