According to Nielsen’s U.S. Entertainment Consumer Report, consumers in households earning an average annual income of $66,000 account for more than 70% of spending on entertainment, like books, video-on-demand and music. Not only did the survey find that these high entertainment spenders have more discretionary income than low or moderate spenders, they also participate in more entertainment activities. This group is also more likely to be female, ethnically diverse and have young children in their household.
Since there are a finite number of hours in a day, high spenders that enjoy an array of activities will ultimately be limited in how much time they dedicate to each. In that way, content providers and advertisers have a slightly larger window of opportunity to engage with moderate and low spenders, says the report.
All three segments spend the most time each week playing video games and listening to music, with low spenders clocking the most time at nearly nine hours. Low spenders also spend the most time perusing print books, magazines or newspapers (5.3 hours per week, on average) and watching mobile video (3.4 hours), while moderate spenders find more time to read content online (4.8 hours) and watch DVDs/Blu-rays (4.7 hours) and video-on-demand (4.6 hours).
Report highlights include:
The high entertainment spender is the ultimate home entertainment consumer, representing a third of the U.S. population and accounting for over 70% of spending across entertainment categories TV, music, books, home video, games, and mobile. High entertainment spenders are more likely than moderate and low entertainment spenders to be female, ethnically diverse and have young children in the household.
High Entertainment Spenders
Moderate Entertainment Spenders
Low Entertainment Spenders
Other (neither Caucasian nor African-American)
Kids under age 6 in the Household
Source: Nielsen, May 2013
High Spenders Engage In More Activities But Spend Less Time On Each (Hours Spent In A Week)
Playing video games
Listening to music
Reading magazines, books or newspapers in print form
Watching DVD/ Blu-rays
Attending live events
Reading magazines, books, newspapers or blogs on a device or online
Watching mobile video via internet
Source: Nielsen, May 2013
High Spenders’ Share Of Total Entertainment Dollars By Category
Compared to the average adult online, digital music buyers are 45% more likely to be aged 25-34, while those who purchase physical CDs are most likely to be between 35 and 44 years old. Internet users who purchase digital music are also more likely than the average adult online to be Asian (8% more likely) and Hispanic (5% more likely).
U.S. Music Buyers (Among Adults Online, Index V. U.S. Internet Users 18+)
Physical CD Buyers
Digital Music Buyers
Source: Nielsen, May 2013; Read as: Adult internet users who purchased physical CDs are 11% more likely than the average U.S. adult online to be female.
18-24 year olds are driving music consumption in the U.S., and spend more than 6 hours per week listening to music – about a full hour more than adults.
Streaming Listeners to Music (2012)
Songs on-demand (chosen by the listener)
Songs programmed (chosen by The service)
Source: Nielsen, May 2013
% Change vs. 2011
Radio plays(terrestrial and satellite)
TV video plays(music video channels)
Source: Nielsen, May 2013; (Includes music streams from: Akoo, Guvera, MediaNet, Rhapsody, Rdio, Slacker, Spotify, Thumbplay, VEVO, Yahoo!, and others. YouTube data was integrated into Nielsen’s music streaming measurement in January 2013.)
29% of consumers are likely to purchase new music after hearing it through a streaming service
On-Demand Music Streamers Social And Spend Big; Compared to the average U.S. Internet user, on-demand music streamers are:
Music Streamers (Index vs.Online)
% Of On-Demand Music Streamers
Index V. Online 18+
Source: Nielsen, May 2013; Read as: Nineteen percent of on-demand music streamers are aged 18-24, 63 percent more likely than the average adult online to be this age)
Social media has increasingly become an important platform for music artists and labels to share and promote their music to the masses. In the U.S., consumers are highly engaged with music content on social sites such as Facebook and Twitter. A Nielsen survey of music consumers found that more than half (55%) read Facebook posts from artists and bands on their mobile device and 26 percent keep up with those artists’ tweets
Social Engagement With Music On Mobile (% of consumers who use Facebook and Twitter to follow artists/bands)
Brand endorsements in an endorsement campaign with a music artist has been shown to increase buy rates of a product by as much as 28% among the artist’s fans. An endorsement campaign by an artist has been shown to increase a brand’s market share by as much as 2.4 points among the artist’s fans:
Percent Of Consumers Who Will Try A Product If They Sponsor An Event For An Artist They Like
% of Respondents
Source: Nielsen, May 2013;
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