Legal music streaming and downloads finally on the horizon
Though internet penetration in Mexico is relatively low, 40%, internet users are highly engaged with the web. According to the November 2011 Interactive Advertising Bureau México (IAB México) report “Digital Media Consumption Study of Mexican Internet Users 2011” conducted by Millward Brown, 33% of internet users spent at least five hours a day online during August 2011. Another 40% used the internet for between two to five hours per day.
Internet users in Mexico are particularly interested in entertainment websites. According to the March 2012 comScore Media Metrix report “Futuro Digital–Latinoamérica 2012,” the country ranked fourth in the region in time spent on entertainment sites, with 3.8 hours per user. Only Peru (4.3), Colombia (4.1) and Chile (4.1) showed higher engagement in this category.
The April 2012 GroupM report “Interaction 2012” offers a hint of what may be the next up-and-coming entertainment trend in Mexico. According to the report, the hours spent by adults with radio (2.57) lost ground to online (3.45) in 2011. And the gap is expected to widen in 2012. This trend could be a signal of a definitive shift toward online music downloads and streaming. Growing adoption of mobile devices with internet capabilities is likely to bolster this trend.
Historically, illegal file sharing and piracy have been a major concern for record labels in Mexico. In light of the shift in media usage and the need for viable alternatives to piracy, the launch of IdeasMusik attempts to serve a clear market need. IdeasMusik is an online music store from América Móvil (in partnership with Universal Music, Sony Music, Warner Music and Emi Music). It will offer downloads and music-streaming plans designed specifically for music listeners in Mexico and Latin America, including payment options that do not require a credit card, features in line with recent B2C ecommerce payment trends in the region.
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