IT House News on June 18, a survey showed that last quarter (2022 Q1), music streaming services including Apple Music and Spotify lost more than 1 million users in the UK. Young consumers are the user base that gives up the subscription as soon as possible.
Kantar's report shows that more than one million music subscriptions in the UK have been canceled because people say they want to save money.
As the British inflation rate rises to 9%and the expected living costs have risen further, the increase in the cancellation rate of music subscription proves that British families have begun to give priority to their disposable income expenditures. More than 1 million subscriptions were canceled last quarter, of which 37%of consumers said that they canceled the subscription to save money, which was also the highest. This number increased by 4%over the same period last year.
According to the survey, Apple Music has 12.4%of new users in the UK last quarter. Australia is 11.3%, Germany is 6.4%, and the United States is 9.7%. Kantar shows that inflation and rising living costs have led to "the personal penetration rate of at least one kind of music service decreases slightly."
In early 2020, 43.6%of users subscribed to music streaming services in the UK, and now 39.5%. One of the reasons for the decreased penetration rate is the decrease in the number of young people subscribing to music, because compared with the previous year, the number of people under the age of 35 decreased by 600,000.
Even though Apple Music and Spotify provided discounts for students, the number of students with music streaming services dropped from 67%to 59%.
Compared with people under the age of 35, some of the main reasons for the cancellation of subscriptions in the age of 35 include the lack of music selection, too many advertisements, or technical difficulties.