What transaction enrichment tells us about consumer spending on music streaming services

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How Much Are Account Holders Spending On Music Streaming Services?

Charts, Data Bites
| March 21, 2024

How Much Are Account Holders Spending On Music Streaming Services?

What we’re seeing

While video streamers have an average of 1.53 video streaming subscriptions, music streamers have greater loyalty to a single service and only pay an average of 1.03 services each month. This effectively means that while streamers may sample a few different video options, they only need a single music streaming subscription. It is not surprising, as music streaming services offer mostly the same content and can differentiate only with user experience and features. Video streaming services are primarily differentiating based on the content library. Spotify was the top provider in our panel, followed by Amazon Music and then Pandora.

Interestingly and notably, Apple Music is not identifiable via transaction analysis because Apple does not differentiate its various subscription offerings in the labeling of transaction descriptions.

While music streaming prices have increased by 13 percent to $11.43 since 2021, when prices hovered around $10 per month, music streaming subscriptions are a relatively inexpensive monthly expenditure.

Takeaway and Call to Action

We’ll re-emphasize the takeaways we shared in our video streaming analysis earlier this month:

First, reminding account holders to put music streaming service subscription payment on the financial institutions’ debit card will drive interchange revenue.
Streaming subscribers likely have other subscriptions too, and this messaging will give a nudge to make sure the institution’s card is top of wallet.

Alkami Research shows that most consumers are opting for a single music streaming service. If an account holder has multiple services, financial institutions should suggest that money from canceled subscriptions be put into a savings account via automatic transfer each month.

Source

Alkami Telemetry Data for this figure was sourced from a panel of 22 financial institutions with more than 2.5 million account holders and over 1.5 billion transactions.