Digital Music - Eastern Europe

Eastern Europe

Highlights

In Eastern Europe, revenue in the Digital Music market market is projected to reach US$566.60m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 4.72%, leading to a projected market volume of US$713.60m by 2029.
The largest market within this market is Music Streaming, with an anticipated market volume of US$406.50m in 2024.
In a global context, the United States is expected to generate the most revenue, estimated at US$19.08bn in 2024.
In the Digital Music market market in Eastern Europe, the number of users is projected to reach 51.2m users by 2029.
User penetration is forecasted to be 19.3% in 2024 and is anticipated to increase to 21.8% by 2029.
Eastern Europe's digital music market is experiencing a surge in popularity as local artists increasingly gain recognition on global streaming platforms.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Eastern Europe has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in Eastern Europe have shifted towards digital music consumption, with an increasing number of consumers opting for streaming services and digital downloads over physical formats. This can be attributed to the convenience and accessibility offered by digital music platforms, allowing users to access a vast library of music at their fingertips. Additionally, the affordability of digital music compared to physical formats has also contributed to the growing popularity of digital music in the region. Trends in the market indicate a rise in the adoption of streaming services, with platforms such as Spotify, Apple Music, and Deezer gaining traction among Eastern European consumers. This can be attributed to the increasing availability of high-speed internet and the widespread use of smartphones and other mobile devices. Streaming services offer a wide range of music genres and personalized recommendations, catering to the diverse tastes of consumers in the region. Furthermore, the rise of local music streaming platforms and the inclusion of regional content has also played a role in driving the growth of the digital music market in Eastern Europe. Local special circumstances, such as the prevalence of piracy in the region, have also influenced the development of the digital music market. In the past, piracy was a major challenge for the music industry in Eastern Europe, with unauthorized downloads and sharing of copyrighted content being widespread. However, with the introduction of legal streaming services and stricter enforcement of copyright laws, the consumption of licensed digital music has increased, leading to a decline in piracy rates. This shift towards legal consumption has created new opportunities for music labels and artists in the region. Underlying macroeconomic factors, such as increasing disposable incomes and a growing middle class, have also contributed to the growth of the digital music market in Eastern Europe. As consumers have more discretionary income, they are willing to spend on entertainment and leisure activities, including digital music. Additionally, the region's improving economic conditions and integration with global markets have attracted international music streaming platforms, further fueling the growth of the digital music market. In conclusion, the Digital Music market in Eastern Europe is experiencing significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards digital music consumption, the rise of streaming services, the decline in piracy rates, and the region's improving economic conditions have all contributed to the development of a thriving digital music market in Eastern Europe.

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.