The online music mix: with an array of services and music consumption methods available to the consumer, optimising the online mix is a key proposition. In this paper, focusing on online user behaviour (excluding mobile phone usage), Nielsen will consider: the active reach of audio and video streaming services and other music sites and applications; the audience overlap between different online music services; and demographic segmentation. This paper builds on the last two papers for MIDEM, in which Nielsen explored music audio and music video streaming services across Europe (UK, France, Spain, Italy and Germany). In these we identified that audio streaming is more popular among the younger users – 18-24 year old and teenagers. Female users are becoming more interested in audio streaming services, a fact that holds most true for UK users. We also discovered that when it comes to music video streaming services, teenagers (aged 13 – 17) and young adults were the most avid users of video streaming websites. Via our research, Nielsen revealed that the higher the engagement with a video through viewing and commenting/liking/favouriting) the higher the sales; although there were a few notable exceptions. In this paper we find that the online music landscape varies widely across the countries in our survey. On the charts over the next couple of pages, we have grouped together key music sites and other large online players to provide context. The top group of sites is the social media group which includes Facebook, MySpace and Twitter in all countries with a couple of local additions in Germany. Full detail on sites included can be found in the appendix.

1. November 2011
Optimising the online
music mix
Jean Littolff, Managing Director
Helena Kosinski, Marketing Manager
Nielsen Music

2. Table of Contents
1. Introduction
2. Methodology
3. Key Takeaways
Country Round Up
4. The UK
5. France
6. Germany
7. Spain
8. Italy
9. Audience Composition
10. Audience Overlap Analysis
11. Conclusion

3. 1. Introduction
The online music mix: with an array of services and music consumption methods available to the consumer,
optimising the online mix is a key proposition. In this paper, focusing on online user behaviour (excluding
mobile phone usage), Nielsen will consider: the active reach of audio and video streaming services and
other music sites and applications; the audience overlap between different online music services; and
demographic segmentation.
This paper builds on the last two papers for MIDEM, in which Nielsen explored music audio and music
video streaming services across Europe (UK, France, Spain, Italy and Germany). In these we identified that
audio streaming is more popular among the younger users – 18-24 year old and teenagers. Female users
are becoming more interested in audio streaming services, a fact that holds most true for UK users. We also
discovered that when it comes to music video streaming services, teenagers (aged 13 – 17) and young
adults were the most avid users of video streaming websites. Via our research, Nielsen revealed that the
higher the engagement with a video through viewing and commenting/liking/favouriting) the higher the
sales; although there were a few notable exceptions.
In this paper we find that the online music landscape varies widely across the countries in our survey. On
the charts over the next couple of pages, we have grouped together key music sites and other large online
players to provide context. The top group of sites is the social media group which includes Facebook,
MySpace and Twitter in all countries with a couple of local additions in Germany. Full detail on sites
included can be found in the appendix.

4. 2. Nielsen Methodology
Our data source is proprietary metered panels of computer internet users, both at home and at work,
across five countries.
Users in five countries – the UK, Germany, France, Italy, and Spain – are analysed.
Nielsen grouped websites together according to their main purpose: we have eight groups – social
media, music sales, music audio streaming, music video streaming, lyrics and music notation websites,
music news websites, live music, and illegal download.
• The social media group includes websites such as Facebook and Twitter.
• Music sales refers to websites on which users can purchase digital music tracks. This group however
also includes applications which can be used for listening to music.
• Music audio streaming refers to websites and applications that allow users to listen to personalized
radio stations or music on demand, e.g. Last.fm, Spotify, Deezer.
• The music video streaming group is composed of websites that host official music videos; it does not
take into account fan-uploaded music videos.
• The lyrics and music notation group refers to websites that post song lyrics, lyrics translations, guitar
tabs and sheet music.
• The music news group is made up of websites that provide daily music artist news and information on
new album/single/video releases.
• The live music group consists of websites that sell tickets or provide information about upcoming
music concerts or festivals.
• The illegal download group is made up of torrent websites and applications, free illegal mp3 download
websites and peer-to-peer websites and applications.
A list of the websites included in each category is provided in the appendix.
Nielsen Capabilities
Nielsen provide online metrics to clients across the globe. Data available includes individual site, service
and application breakdown data. Nielsen provide website metrics including active reach, coverage, time
spent, sessions and page views. By further combining this data with demographic breakdown including
age, gender, household income, education and occupation, Nielsen provide our clients with
comprehensive and trusted insights into online behaviours.

5. 3. Key Takeaways
- Social Media is widespread, reaching in most analysed countries more than 60% of the audience. It is
an anchor of online users’ behaviours.
- Online video streaming being accessed by, either close to, or higher than, 1 out of 2 internet users. It
is a critical stream to provoke revenue generation and simultaneously to promote music content. Pure
music video streaming within this category is showing a very decent reach of the internet population.
- Music sales sites and apps (including apps which can be used to listen to music) and music audio
streaming usage do reflect strongly what is locally on offer, and habits of music consumption. France is
high on both sales and audio streaming, Germany and the UK more skewed toward sales, Italy and
Spain still struggling against sites where illegal downloads are available.
- The overlap between the different sites (metrics of audience which visited multiple music related sites:
music sales, music audio streaming sites and music video streaming sites) shows an ecosystem which
has grown out of its infancy. In some countries, like France, users jump equally from sales sites to video
streaming or audio streaming sites. Users move from video to audio streaming sites in greater numbers
than those progressing the other way. These interchanges promote the multi channel strategy of
promotion and also encourage methods of revenue generation from this bundle of channels.

6. 4. The UK
• Of all the countries in Nielsen’s sample, UK has the highest active reach for music sales
websites. Active reach is the percentage of all active unique internet users who visited a website
or used an application. Note: the music sales category includes applications which can be used
for listening to music.
• A variety of music audio streaming services operate in the UK. The most current data from
September 2011 shows that such websites and applications reach around 5% of the online
population in the UK.
• In August and September 2011, 35-49 year old men were the most frequent visitors to audio
streaming websites and applications in the UK, visiting on average 2 times per week. They were
also the ones who spent the most time on audio streaming platforms.
• Music video streaming websites reached almost 15% of the British Internet users in September
2011. The most frequent visitors of music video streaming websites were 18-24 year old men,
with 1-2 visits per week. In comparison, users in the other demographic groups visited such
websites between 2 and 4 times a month.
Active Reach - UK - September 2011
0% 10% 20% 30% 40% 50% 60% 70%
Soci a l Medi a
YouTube
Mus i c Sa l es
Mus i c Vi deo Strea mi ng
Il l ega l Downl oa d
Lyri cs & Nota ti on
Mus i c Audi o Strea mi ng
Mus i c News
Source: UKOM/ Nielsen
Li ve Mus i c
A list of the websites included in each category is provided in the appendix.

7. 5. France
• Music audio streaming services have succeeded in creating a larger user base in France (the
active reach of audio streaming services was 13.5% in September 2011). The most frequent
visitors to audio streaming websites in August and September 2011 were 25-34 year old men (1 - 2
visits per week).
• Music video streaming websites have also been able to attract substantial number of users (16.5%
active reach in September 2011). In August and September 2011, French women visited more
frequently and spent more time on music video streaming websites than men. However, this
difference is rather small.
Active Reach - France - September 2011
0% 10% 20% 30% 40% 50% 60% 70%
Soci a l Medi a
YouTube
Mus i c Vi deo Strea mi ng
Mus i c Sa l es
Mus i c Audi o Strea mi ng
Il l ega l Downl oa d
Mus i c News
Lyri cs & Nota ti on
Source: Nielsen
Li ve Mus i c

8. 6. Germany
• Of all music-related websites, music sales websites have the highest online penetration in
Germany (12.5% active reach in September 2011). Note: the music sales category includes
applications which can be used for listening to music.
• Whilst there are a number of music audio streaming services available in Germany, they have yet
to attract a large proportion of the online population.
• Music video streaming websites are growing in active reach. However, YouTube is not licensed
by GEMA for music content. The average German user visited a music video streaming website
2-3 times a month. There is almost no difference between the different demographic groups
regarding frequency of visits.
• 25-34 year old women were the most frequent visitors to lyrics websites in September 2011, with
5 visits per month. The average user visited 2-3 times a month.
Active Reach - Germany - September 2011
0% 10% 20% 30% 40% 50% 60% 70%
Soci a l Medi a
YouTube
Mus i c Sa l es
Il l ega l Downl oa d
Mus i c Vi deo Strea mi ng
Lyri cs & Notation
Mus i c Audi o Strea mi ng
Mus i c News Source: Nielsen

9. 7. Spain
• Music sales websites have a lower active reach than music audio and video streaming in Spain.
Note: the music sales category includes applications which can be used for listening to music.
• Music audio streaming services have managed to attract a significant number of the Spanish online
users (11% active reach in September 2011). In September 2011, the 18-34 year old men were the
most frequent visitors to audio streaming websites and applications. They were also the ones who
spent the most time on audio streaming services, followed closely by 35-49 year old men.
• Music video streaming is also prominent (19% active reach). The most frequent visitors to music
video streaming websites in September 2011 were the 18-24 year olds.
Active Reach - Spain - September 2011
0% 10% 20% 30% 40% 50% 60% 70% 80%
Social Media
YouTube
Illegal Download
Music Video Streaming
Music Audio Streaming
Music Sales
Lyrics & Notation
Music News
Live Music Source: Nielsen

10. 8. Italy
• A small number of music audio streaming services are available in Italy.
• Of all music-related websites, music video streaming websites have attained the highest active
reach – 17% in September 2011. In September 2011, the most frequent visitors to music video
streaming websites were the 13-17 year olds, who accessed a video streaming platform once a
week.
• Lyrics and notation websites are more popular in Italy than in the other European countries in
the sample (active reach of 9.7% in September). The average Italian user visited a lyrics
website 2-3 times a month in September 2011.
Active Reach - Italy - September 2011
0% 10% 20% 30% 40% 50% 60% 70% 80%
Soci a l Medi a
YouTube
Mus i c Vi deo Strea mi ng
Il l ega l Downl oa d
Mus i c Sa l es
Lyri cs & Nota ti on
Mus i c News
Mus i c Audi o Strea mi ng
Li ve Mus i c
Source: Nielsen

11. 9. Audience Composition
Audience Composition - France - Video Streaming
The reach of services is one key metric, but
as important is knowing who the main
consumers of a particular music service are
and how the audience composition of such
services changes over time. The graphs Sep - 2011 15.9% 30.8% 32.3% 21.0%
here provide examples of the shifts that 2 --17
occur in the demographic composition of 18-34
music websites’ visitors. The 18-24 year old
users in Spain represented a smaller 35-49
proportion of the audience of audio 50+
streaming services in September 2011 Sep - 2010 9.0% 30.7% 35.2% 25.2%
compared to 2010, whereas the 35+ year
olds have grown as a percentage of the total
visitors. In France, children and teenagers
made up a larger part of the music video 0% 20% 40% 60% 80% 100%
streaming websites’ audience in September
2011 compared to September 2010, with the
proportion of 35+ year olds declining.
Audience Composition - Spain - Audio Streaming
Sep - 2011 9.2% 46.3% 31.3% 13.2%
2 --17
18-34
35-49
Sep - 2010 8.2% 53.3% 26.2% 12.2% 50+
0% 20% 40% 60% 80% 100%
Source: Nielsen

12. 10. Audience Overlap
Thus far in this paper, Nielsen has investigated the relative importance of each type of music-related
website and application to the online consumer. However, the various online music platforms do not
exist in isolation, but rather form an ecosystem of music services. As users are exploring the wide array
of options to access music content online, there is an overlap between the users of different online
music services.
With the hyper-fragmentation of the music industry, the music consumer can choose to access/purchase
content in many different ways and not just choosing one method. To substantiate this point, Nielsen
has conducted an audience overlap analysis which shows what proportion of the visitors to a particular
website also visited another website.
For example, in September 2011 50% of the French users who visited any music audio streaming
website also went to a music video streaming service and 30% of those who visited an audio streaming
service visited a music sales website. The figure below illustrates the virtuous circle that exists between
these different types of online music platforms.
Music Sales Sites
France – September 2011
31%
30%
27%
28%
50% Music Video
Music Audio
Streaming Services
Streaming Services
41%
Source: Nielsen

13. 11. Conclusion
A variety of music services are available to music consumers, allowing them to rely on more than one
way to access/purchase music. Having looked into these various ways of music consumption, it is
important to address the question of whether a virtuous circle exists within this complex ecosystem. The
challenge for the music industry is to maximise the interconnection between the different music sources
in order to generate more revenue from consumer usage and to capture maximum user attention, as
users are trying to navigate their way through the plethora of services on offer.
Comparing music related websites in each of these countries outlines the nuances of the local business.
For example, both music video and music audio streaming services are strong in France, while music
sales sites remain strong in the UK and Germany (markets ranked 3rd and 4th in the world sales ranking
by the IFPI in 2010). In Spain, where there is a well documented piracy problem, music sales sites have
lower reach, but streaming services have become popular.
Considering audience overlap, whilst there are notable overlaps between the different online music
services, a keystone service that links all the other online music platforms, has not emerged. Big names
in online search and social media are seeking to integrate with variety of online music services, and
tracking developments in that direction will be interesting to watch.
In summary, online music services - digital download sales, audio streaming and video streaming - are
all interconnected. They all benefit from the rest of the music industry ecosystem (notably from radio,
TV, and concerts) and contribute to it (for example, to live concerts).
Increasing marketing impact and maximising the revenue from any source will require continuing to
rebuild a quite straightforward model in a world which is not simple anymore.

14. Appendix
Category UK
Social Media Facebook, Twitter, Myspace
Music Video Streaming VEVO, Dailymotion Music, Orange Music, SFR Music, Free Music, Paroles de Clip, MTV Networks Music, Ournia,
Stars Music
Music Audio Streaming Spotify, Deezer, Last.fm, Radionomy, Goom Radiom, Jukebo, MusicMe, Jiwa, Fun Radio, AlloMusic, Musique Radio
Music News Websites such as Great Song, Premiere Musique, Lesinrocks, Pure Charts
Music Sales iTunes, 7 Digital, eMusic, CD Universe, Beezik, Starzik, Fnac Download, Qobuz
Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.com
Illegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull
Live Music & Gigs Live Nation Network, Songkick, Stereoboard.com, GigWise.com, Virtual Festivals, Music Glue, BandsInTown
France
Social Media Facebook, Twitter, Myspace
Music Video Streaming VEVO, Muzu TV, Dailymotion Music, MSN Music, MTV Networks Music
Music Audio Streaming Spotify, we7, Last.fm, Napster, Jango.com, Mixcloud, ReverbNation
Music News Websites such as BBC Music, RollingStone, Billboard, Drowned in Sound, allmusic
Music Sales iTunes, 7 Digital, eMusic, CD Universe, CD WOW !, Amazon Mp3 Downloader, Beatport
Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.com
Illegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull
Live Music & Gigs Concerts.fr, infoconcert.fr, ConcertAndCo, Concertlive.fr
Germany
Social Media Facebook, Twitter, Myspace, meinVZ, studiVZ, schülerVZ
Music Video Streaming Yavido, Dailymotion Music, tape.tv, MTV.com

15. Music Audio Streaming Simfy, Last.fm, Napster, Jango.com, musicstar
Music News e.g. Web.de Musik, GMX Musik, Laut.de, Hiphop.de
Music Sales iTunes, 7 Digital, eMusic, CD Universe, Amazon Mp3 Downloader, tonspion, T-Online Musicload
Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.com
Illegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull
Spain
Social Media Facebook, Twitter, Myspace
Music Video Streaming VEVO, Muzu TV, Dailymotion Music
Music Audio Streaming Spotify, Last.fm, Rockola.fm, Los40.com, Vagos.fm, Yes.fm
Music News e.g GoEar, Cadenadial.com, HHGroups,Jenesaispop
Music Sales iTunes, 7 Digital, eMusic, CD Universe,
Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.com
Illegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull
Live Music & Gigs Nvivo.es, Conciertos 10, Ticketsfera
Italy
Social Media Facebook, Twitter, Myspace
Music Video Streaming VEVO, Muzu TV, Dailymotion Music, Virgilio Musica, Musictory
Music Audio Streaming Last.fm, Jango.com, DADA, Radionomy, Cubomusica, ReverbNation
Music News Websites such as rockol.it, musicsite.it, italianissima.net, Sonorika.com, ondarock.it
Music Sales iTunes, 7 Digital, eMusic, CD Universe
Lyrics & Notation Websites such as AZLyrics, LyricsMode, Lyrics007.com, Sing365.com, Ultimate-Guitar.com
Illegal Download Websites such as The Pirate Bay, BitTorrent, Torrentz, BeeMp3, TorrentReactor, Mp3Skull
Live Music & Gigs Live Nation Network, Concertionline, 5gig.it

16. About the author
Nielsen Music is the measurement reference of the music industry, and the market data and research partner of choice
for the music sector. Our local and international teams of research and music experts bring the best set of
comprehensive, robust and quality insights to our music clients.
With Nielsen Music, access, understand and interrogate:
• What music is played on radio and music television (airplay monitoring); we are the only respected and official brand for
charts and provide detailed analysis with both local and international coverage.
• What is sold (sales tracking); tracking of digital sales globally and physical sales in selected countries.
• What is said and by whom; measurement of internet behaviour and consumer generated media (buzz).
• What is advertised and where; complete advertising information.
• Who your customers are: significant global consumer and ad-hoc research capabilities.
Nielsen Music is successfully working with more than 500 clients representing all elements of the music chain: record
companies/music labels (majors and independents), radio and TV stations, music publishers, performing rights
organisations, artists and their management, digital media and services, mobile phone companies, retailers, the video
game/gaming industry, consultancy firms, and the media. Nielsen Music (www.nielsen-music.com) is a division of Nielsen
(www.nielsen.com), the leading global market research company.
Contact details:
Jean Littolff – Managing Director, Nielsen Music International (jean.littolff@nielsen.com)
Helena Kosinski – International Marketing Manager, Nielsen Music International (h.kosinski@nielsenmusiccontrol.com)
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