Nielsen unveiled the findings of a new study, dubbed “The Buyer and the Beats: The Music Fan and How to Reach Them,” which revealed that how fans spend their money in our era of social media, crowdsourcing, and other new innovations.
According to the report, fans (those responsible for 75% of music spending) could possibly spend an extra $450 million to $2.6 billion on music if they’re presented with exclusive material and other compelling content.
“It’s encouraging to see such strong demand for content from music fans,” said David Bakula, SVP Client Development & Analytics for Entertainment, Nielsen. “We are finding that there’s a lot of untapped demand for additional content, which can translate into beneficial and profitable opportunities for artists, labels, and advertisers.”
In the study, which was created for the 2013 SXSW conference, Nielsen broke down the various types of fans — Aficionado Fans, Digital Fans, Big Box Fans, Occasional Concert Consumers, and Background Music Consumers — and how much percentage each spend in the overall pie.
Additionally, the study finds that that the most avid of “Fans” have downloaded the most tracks for free –approximately 30 digital songs per fan over the course of a year.