Digital Music - Peru

Peru

Highlights

In Peru, revenue in the Digital Music market market is projected to reach US$76.74m in 2024.
Revenue in this market is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 6.29%, leading to a projected market volume of US$104.10m by 2029.
The predominant market within this sector is Music Streaming, which is expected to have a market volume of US$64.21m in 2024.
When compared globally, the largest revenue generation will occur the United States with US$19.08bn in 2024.
In the Digital Music market market in Peru, the number of users is expected to reach 8.9m users by 2029.
User penetration is forecasted to be 23.4% in 2024 and is predicted to increase to 24.5% by 2029.
The usage share of Spotify is estimated to constitute 56.0% of the Digital Music market market in the selected region for the year 2023.
In 2023, a share of 35.7% of users is categorized in the 35.7% group.
In Peru, the digital music market is increasingly embracing local genres, reflecting a growing appetite for cultural authenticity among consumers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Peru has been experiencing significant growth in recent years.

Customer preferences: Peruvian consumers have shown a strong preference for digital music platforms over traditional physical formats. This shift in consumer behavior can be attributed to several factors. Firstly, the convenience and accessibility of digital music platforms allow users to easily access a wide range of music anytime and anywhere. Additionally, the affordability of digital music subscriptions compared to purchasing individual songs or albums has made these platforms more attractive to consumers. Furthermore, the ability to create personalized playlists and discover new music through algorithm-based recommendations has enhanced the overall user experience.

Trends in the market: One of the key trends in the digital music market in Peru is the increasing popularity of streaming services. Streaming platforms have gained traction among Peruvian consumers due to their extensive music libraries and user-friendly interfaces. This trend is expected to continue as more Peruvians gain access to reliable internet connections and smartphones, which are essential for streaming music on-the-go. Additionally, the rise of local and regional music streaming platforms tailored to the Peruvian market has further fueled the growth of the industry. Another trend in the market is the growing demand for local and regional music. Peruvian consumers have shown a strong interest in music that reflects their cultural identity and heritage. This has led to the emergence of platforms that focus on promoting and showcasing Peruvian artists and genres. As a result, there has been an increase in the production and distribution of Peruvian music, both domestically and internationally.

Local special circumstances: Peru has a rich musical heritage with diverse genres such as huayno, salsa, and cumbia. The popularity of these genres within the country has contributed to the growth of the digital music market. Additionally, the increasing availability of affordable smartphones and internet access has allowed a larger portion of the population to engage with digital music platforms.

Underlying macroeconomic factors: Peru has experienced steady economic growth in recent years, which has positively impacted the digital music market. As disposable incomes rise, consumers are more willing to spend on entertainment and leisure activities, including digital music subscriptions. Furthermore, the increasing penetration of internet services in both urban and rural areas has expanded the potential customer base for digital music platforms. In conclusion, the Digital Music market in Peru is experiencing growth due to customer preferences for convenience and affordability, the increasing popularity of streaming services, the demand for local and regional music, Peru's rich musical heritage, and underlying macroeconomic factors such as economic growth and internet penetration.

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.