Digital Music - Baltics

Baltics

Highlights

In the Baltics, revenue in the Digital Music market market is projected to reach US$35.98m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 5.29%, resulting in a projected market volume of US$46.57m by 2029.
The largest market within the Baltics’ Digital Music market market is Music Streaming, which is anticipated to have a market volume of US$28.13m in 2024.
In a global context, the highest revenue will be generated the United States, which is projected to reach US$19.08bn in 2024.
Within the Digital Music market market in the Baltics, the number of users is expected to amount to 1.7m users by 2029.
User penetration in this region will be 27.8% in 2024 and is expected to increase to 31.2% by 2029.
In the Baltics, the digital music market is experiencing a surge in local artist collaborations, enhancing cultural identity while boosting streaming platform engagement.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Baltics has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of digital music platforms. Customer preferences in the Digital Music market have shifted towards streaming services, with consumers opting for the convenience and affordability of accessing a vast library of music on-demand. This trend is not unique to the Baltics, as streaming has become the preferred method of music consumption worldwide. The rise of smartphones and high-speed internet connectivity has made it easier for consumers to access streaming platforms, leading to a decline in physical music sales. In addition to streaming services, customers in the Baltics also show a preference for local and regional music. This can be attributed to a sense of cultural pride and the desire to support local artists. Streaming platforms have capitalized on this preference by curating playlists and promoting local talent, further driving the demand for digital music in the region. Trends in the Digital Music market in the Baltics also reflect the global shift towards subscription-based models. While ad-supported streaming platforms still exist, more customers are willing to pay a monthly fee for an ad-free experience and additional features such as offline listening. This subscription-based revenue model has proven to be profitable for digital music platforms and has contributed to the overall growth of the market. Local special circumstances in the Baltics, such as the relatively small population size and limited market competition, have played a role in shaping the Digital Music market. With fewer competitors in the region, digital music platforms have been able to establish a strong presence and capture a significant market share. This has allowed them to tailor their offerings to the specific preferences of Baltic consumers, further driving the growth of the market. Underlying macroeconomic factors, such as the increasing disposable income and the growing popularity of digital technologies, have also contributed to the development of the Digital Music market in the Baltics. As the economy continues to grow and more people gain access to smartphones and high-speed internet, the demand for digital music is expected to further increase. Overall, the Digital Music market in the Baltics is experiencing growth due to changing customer preferences, the availability of streaming services, and the support for local and regional music. The market is expected to continue expanding as more consumers embrace digital music platforms and as the underlying macroeconomic factors remain favorable.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Music, Radio & Podcasts market, which comprises all revenues generated by traditional and digital radio advertising, consumer purchases of live music event tickets, all sales of tangible audio recording formats, paid digital downloads of professionally produced single tracks / compilations, ad-supported services, and subscription-based, on-demand streaming services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.