There are significant concerns about the impact that economic recessions around the world may have on paid music subscriptions, highlighted most recently by data from the IFPI. What about advertising-supported music? Perhaps there may be a silver lining for that sector of the industry.
The Guardian reported on a survey of 59 of the biggest advertisers in the UK about their plans for 2023, and found that 67% are planning to make their deepest budget cuts to TV ads next year, while nearly 40% are planning to cut offline media spend overall.
Silver lining? “A third of companies surveyed said they intended to increase spend on formats such as paid search and social channels, as well as digital formats such as podcasts and music streaming, and digital screens,” noted the Guardian. One survey in one country, but it may be reflective of a wider trend, which is why Spotify, YouTube, Amazon and other services offering ad-supported music will be pushing hard with their pitches in the coming months.
The concern for the music industry, however, will be whether any (theoretical) boost for ad-supported music revenues can outweigh any (also theoretical, for now) hit to paid subscriptions.