Digital Music - South America

South America

Highlights

In South America, revenue in the Digital Music market market is projected to reach US$1.31bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.96%, which will result in a projected market volume of US$1.67bn by 2029.
The largest market within this market is Music Streaming, anticipated to have a market volume of US$958.50m in 2024.
In global comparison, the majority of revenue will be generated the United States, with figures reaching US$19.08bn in 2024.
In the Digital Music market market, the number of users in South America is expected to amount to 153.7m users by 2029.
User penetration in the region will be 32.9% in 2024 and is anticipated to rise to 36.1% by 2029.
As Brazil's digital music market continues to expand, local artists are increasingly gaining traction on global streaming platforms, reshaping the cultural landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in South America has experienced significant growth in recent years, driven by changing customer preferences and the increasing availability of streaming services. Customer preferences in the Digital Music market have shifted towards streaming services, as consumers seek convenience and access to a wide variety of music. Streaming platforms such as Spotify, Apple Music, and Deezer have gained popularity in South America, offering extensive music libraries and personalized recommendations. This trend is in line with the global market, where streaming has become the dominant form of music consumption. Trends in the South American Digital Music market include the rise of local and regional music. Streaming services have provided a platform for South American artists to reach a global audience, resulting in increased recognition and international collaborations. This has contributed to the growth of the local music industry and has fostered a sense of cultural pride among consumers. Another trend in the market is the emergence of digital music festivals and virtual concerts. With the limitations imposed by the COVID-19 pandemic, artists and event organizers have turned to digital platforms to connect with fans and generate revenue. Virtual concerts have become a popular alternative to live events, allowing artists to reach a wider audience and providing fans with an immersive music experience from the comfort of their homes. Local special circumstances in South America have influenced the development of the Digital Music market. One such circumstance is the high smartphone penetration rate in the region. South America has seen a rapid increase in smartphone ownership, making it easier for consumers to access digital music platforms and stream their favorite songs on the go. This has contributed to the growth of the market and has created new opportunities for both local and international music companies. Underlying macroeconomic factors have also played a role in the growth of the Digital Music market in South America. As the region's economies continue to develop, disposable incomes have increased, allowing consumers to spend more on entertainment and leisure activities. This has created a favorable environment for the digital music industry to thrive, as consumers are willing to pay for premium streaming services and support their favorite artists. In conclusion, the Digital Music market in South America has experienced significant growth due to changing customer preferences, the availability of streaming services, and the emergence of local and regional music. The high smartphone penetration rate, favorable macroeconomic conditions, and the shift towards digital entertainment have all contributed to the development of the market. As technology continues to advance and streaming platforms evolve, the Digital Music market in South America is expected to further expand and offer new opportunities for artists, consumers, and industry players.

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.