TikTokTuesday 21st November: Today, TikTok publishes the Music Impact Report, a new report that was commissioned by TikTok and prepared by Luminate, the most trusted source of entertainment data and research. The report sets out to consider the impact that TikTok and its users have on the music industry in terms of music discovery, consumption, and contribution to industry revenues.
The Music Impact Report was commissioned with the goal of understanding the platform's impact on the broader music industry. It is a quantitative analysis of the impact of the app and the unique role that TikTok and its users play in the music ecosystem. Luminate studied data* from the US, UK, Germany, Brazil and Indonesia, as well as global data, for the 12-month period from July 1 2022 to June 30 2023.
The report's key findings include:
TikTok Fuels Music Discovery
- Globally, TikTok users are significantly more likely to discover AND share new music content on social or short-form video (SFV) platforms than the average user of social or SFV platforms
- In the US, TikTok users are TWICE as likely to discover music on SFV platforms than the average user of SFV or social media platforms
TikTok Users Generate Value via Streaming
- Globally, TikTok users are significantly more likely to use a paid music streaming service than the average consumer
- In the US, 62% of TikTok users pay for a music streaming service, compared to 43% of consumers overall.
- Globally, engagement with an artist‘s music on TikTok is strongly correlated with streaming volumes.
TikTok Users Generate Value Off-Platform
- Globally, TikTok users spend significantly more money across music-related categories compared to the average music listener across all markets analyzed
- In the UK, TikTok users spend 49% more on music purchases compared to average listeners
- In the US, 38% of TikTok users attended a live music event and 45% purchased artist merchandise in the past 12 months, compared to 33% and 35% of overall music listeners, respectively.
TikTok Connects Local Artists with Global Audiences
- Globally, TikTok‘s audience exhibits a unique preference for international music, far exceeding that of the average listener across all markets analyzed.
- In the UK, TikTok users are 77% more likely to want access to global music artists compared to average music listeners.
- In the US, nearly half (46%) of TikTok users listen to music that is not in English, which is 27% more likely than music listeners overall. This audience is also 33% more likely to consider having access to global music as 'extremely important'.
"TikTok is already famous for being the launchpad for creating viral hits and breaking new artists, but we wanted to understand how TikTok and its users impact the music industry more broadly. Luminate's findings prove what we had long known: that TikTok is the driving force behind music discovery in the industry, and that TikTok users are active, engaged and highly valuable drivers of music industry revenues." said Ole Obermann
"Luminate was happy to collaborate with TikTok on this report, as it demonstrates the value of data and research in today’s entertainment ecosystem," says Nick Lanzafame, VP, Head of Research at Luminate. "After analyzing the data, our team was able to help TikTok tell a data-driven, objective story, showcasing their impact as a source for music discovery and demonstrating how TikTok users are uniquely valuable to the music industry. We are always committed to unlocking the most essential data for our client partners, and in this report we were able to do that on a global scale, leveraging a number of comprehensive data sources."
For the full report click here.
