Georgia, a small country located at the crossroads of Eastern Europe and Western Asia, has seen a significant development in its digital music market in recent years. With the rise of streaming platforms and the increasing popularity of smartphones, the way people consume music has undergone a dramatic transformation.
Customer preferences: In Georgia, as in many other parts of the world, customer preferences have shifted towards digital music streaming services. The convenience and affordability of these platforms have made them the go-to choice for music lovers. Streaming services offer a vast library of songs that can be accessed anytime and anywhere, allowing users to discover new artists and genres easily. This has led to a decline in physical music sales, such as CDs and vinyl records, as consumers now prefer the convenience of digital platforms.
Trends in the market: One of the key trends in the digital music market in Georgia is the increasing popularity of local music. Georgian artists, both established and emerging, are gaining recognition and reaching wider audiences through digital platforms. This trend is fueled by the growing interest in cultural heritage and the desire to explore music from different regions. Streaming services have made it easier for Georgian artists to promote and distribute their music globally, leading to a surge in demand for local content. Another trend in the market is the emergence of personalized playlists and curated content. Streaming platforms use algorithms to analyze user preferences and create personalized playlists tailored to individual tastes. This personalized approach to music discovery has become a major selling point for these services, as it allows users to easily find music that suits their mood and interests. Additionally, curated playlists created by experts and influencers have gained popularity, providing users with a curated selection of songs based on specific themes or genres.
Local special circumstances: One of the unique aspects of the Georgian digital music market is the strong influence of traditional music. Georgian folk music has a rich history and is deeply ingrained in the country's cultural fabric. The popularity of traditional music has not waned with the rise of digital platforms. Instead, streaming services have provided a platform for traditional Georgian music to reach a wider audience, both domestically and internationally. This has contributed to the preservation and promotion of Georgian cultural heritage.
Underlying macroeconomic factors: The development of the digital music market in Georgia can be attributed to several underlying macroeconomic factors. Firstly, the increasing penetration of smartphones and internet access has made it easier for people to stream music on the go. This has created a large user base for streaming platforms, driving the growth of the market. Additionally, the relatively low cost of digital music subscriptions compared to physical music purchases has made streaming services more accessible to a wider audience. Finally, the globalization of music and the ease of international distribution through digital platforms have opened up new opportunities for Georgian artists to reach a global audience, contributing to the overall growth of the market.
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.
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