Digital Music - Chile

Chile

Highlights

Revenue in the Digital Music market market in Chile is projected to reach US$81.81m in 2024.
Revenue in this sector is expected to show an annual growth rate (CAGR 2024-2029) of 6.00%, resulting in a projected market volume of US$109.50m by 2029.
The largest market of this market in Chile is Music Streaming, which is anticipated to have a market volume of US$63.62m in 2024.
In a global context, the most revenue will be generated the United States, with an estimated US$19.08bn in 2024.
In the Digital Music market market in Chile, the number of users is expected to amount to 11.1m users by 2029.
User penetration in the Digital Music market sector will be 48.3% in 2024 and is expected to increase to 55.9% by 2029.
The usage share of Spotify in Chile amounts to an estimated 50.0% of the Digital Music market market in 2023.
In the year 2023, a share of 37.9% of users is in the 37.9% group.
In Chile, the digital music market is experiencing a surge in local artist collaborations, reflecting the country's vibrant cultural scene and increasing demand for diverse musical genres.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Chile has been experiencing steady growth in recent years, driven by changing customer preferences and the increasing availability of online music streaming platforms. Customer preferences in the Digital Music market have shifted significantly in Chile, with a growing preference for streaming services over traditional methods of music consumption. This can be attributed to the convenience and accessibility offered by streaming platforms, which allow users to access a vast library of music on-demand. Additionally, the rise of smartphones and affordable mobile data plans has made it easier for consumers to stream music on the go. One of the key trends in the Digital Music market in Chile is the increasing adoption of paid subscription services. As consumers become more willing to pay for premium features such as ad-free listening and offline downloads, streaming platforms have been able to generate significant revenue. This trend is expected to continue as more users recognize the value and convenience of paid subscriptions. Another trend in the market is the growing popularity of local and regional music. Streaming platforms have made it easier for Chilean artists to reach a wider audience, both domestically and internationally. This has led to an increase in the production and consumption of local music, as well as the emergence of new genres and styles. Streaming platforms have also played a role in promoting Chilean artists and helping them gain recognition on a global scale. In addition to customer preferences, there are several local special circumstances that have contributed to the development of the Digital Music market in Chile. One such circumstance is the high level of internet penetration in the country. Chile has one of the highest internet penetration rates in Latin America, which has facilitated the growth of online music streaming platforms. Furthermore, the government has implemented policies to promote digital innovation and entrepreneurship, which has created a favorable environment for the development of the Digital Music market. Underlying macroeconomic factors have also played a role in the growth of the Digital Music market in Chile. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. This has allowed more consumers to afford paid subscription services and contribute to the revenue of streaming platforms. Additionally, the increasing popularity of smartphones and the availability of affordable mobile data plans have made it easier for consumers to access and stream music online. Overall, the Digital Music market in Chile is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The increasing adoption of streaming services, the popularity of paid subscriptions, and the promotion of local music are all contributing to the growth of the market. With the continued expansion of internet access and the government's support for digital innovation, the Digital Music market in Chile is expected to continue its upward trajectory in the coming years.

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.