Mark Mulligan: ‘Europe has too many services chasing too few customers’


Former Forrester analyst Mark Mulligan has spelled out a warning for the music industry in Europe, pointing to “the class divide that has grown between the US and European digital music markets”. Mulligan claims that the US digital market is “massively outperforming” its European peers, and suggests that Western Europe’s 465 music services is unsustainable compared to the 24 in the entire US.

“Europe has too many services chasing too few customers,” he writes, before calculating that the average margin per service (AMPS) is $26.03 million in the US, but just $0.61 million in Europe. “In effect the over-supply of European services acts as an accelerator on the disparity between the regions… The reason we haven’t had a market implosion yet is because so many of the owners of these services – such as ISPs and mobile operators – continue to show appetite to run them at a loss because of perceived benefits to their core businesses. But the simple fact is that there are too many services.”

Music Ally

Read More: News
Leave a Reply

(All fields required)