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After more than a decade of healthy, double-digit compound annual growth, ad spending on digital audio services slowed dramatically in 2023, downshifting the space into a new era

And then you've got YouTube very close, Pandora very close, TikTok, and then you have kind of the second tier if you will, and then a big 10-minute jump back to Hulu, Instagram, Reddit, et cetera. So Netflix is by far and away the platform where people are spending most of their time. Zach Goldner (11:55):. And I will argue Oscar's point there. He says that Netflix is not suited to have live sports.

Netflix and Hulu remain near the top, but TikTok and the two major digital audio services we track (Spotify and Pandora) make huge leaps. Facebook, meanwhile, drops substantially in the rankings. And Amazon Prime Video drops to last, an indication of possible challenges as the platform shifts to an ad-centric viewer experience. To view time spent by platform among users, click here.

The ad spending winter of 2022 and early 2023 was mild and short-lived, as we predicted. And after a solid H2 2023, things are looking up across the board for 2024.

Pandora: From First Mover to Also-Ran. Pandora introduced the concept of digital audio to millions of US listeners. But 10 years after being used by nearly half of all digital audio listeners in the US, it is now on its way to becoming a marginal digital product. Pandora is losing listeners quickly. Five years ago, 74.5 million people in the US listened to Pandora every month.

Spotify and Pandora popular among users. The long tail of digital audio options means that no individual service claims all that much daily time when calculated against the whole population. But among its active adult user base, Spotify will take up a robust 56 minutes per day this year, and Pandora will take 48 minutes.

And so then Pandora, Pandora, too. Yep. I noticed. Well, Ross. So one reason why subscribers are only 13 million, versus some of the other numbers, they've seen the last couple of quarters 2823 3626, marketing pullback, Chief Executive Daniel Eck blaming some of the lowest subscriber growth on a sharp slowdown in marketing.

Spotify and Pandora popular among users. The long tail of digital audio options means that no individual service claims all that much daily time when calculated against the whole population. But among its active adult user base, Spotify will take up a robust 56 minutes per day this year, and Pandora will take 48 minutes.

Digital audio service includes digital advertising revenues for local and national broadcast radio stations, satellite radio services, purely online radio stations, and streaming music services such as Pandora and Spotify; includes podcast advertising and sponsorship; includes both audio and nonaudio ad formats.

Time spent with CTV devices includes a good deal of time watching video, but it also includes other activities such as shopping, searching, and listening to digital audio like Spotify or Pandora. Average daily time spent with CTV devices has already caught up with time spent with desktop/laptops; by next year CTV (1:56) will be ahead of time spent with desktop/laptops (1:51).

Adult Spotify and Pandora users spend 51 and 49 minutes listening to audio daily, respectively. That鈥檚 more time spent than on most social media platforms, according to our forecasts. TikTok, which leads time spent, averaged 53.8 minutes per day from its US adult users. 鈥淎udio has massive reach and it鈥檚 just going to be continually growing as it has more and more users looking at it.

In 2022, Amazon overtook Pandora to become the No. 2 digital audio service by listeners, distantly behind Spotify. However, that tipping point had more to do with an attrition in Pandora鈥檚 audience than with Amazon鈥檚 organic growth (which will not pass 2.1% through 2027).

If you really want to rival Spotify and Pandora, you're going to have to clear some bigger legal rights then I think TikTok's ever had to deal with when they're having user generated stuff in short snippets. Marcus Johnson:. Blake. Blake Droesch:. I think obviously digital music adoption is super high.