The music streaming market in Vietnam has undergone significant transformations in recent years, reflecting the country's deeply ingrained musical culture and the rapid growth of digital services. As the most popular form of entertainment in Vietnam, music has gained even more traction in the digital realm, with streaming services becoming increasingly prevalent among the population.
After a decrease in usage during the previous quarter, the Vietnamese music streaming industry has bounced back, with YouTube maintaining its position as the frontrunner. According to Decision Lab’s Connected Consumer Q1 2024, Spotify has emerged as a unique player in the market, demonstrating a steady recovery in user engagement since Q3 2023.
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The music streaming market in Vietnam
Vietnamese people have a deep love for music. According to Decision Lab’s report with Lava Digital, 73% of the Vietnamese choose “Listening to music” as their favourite activity during free time. As of Q1 2024, YouTube remains the most popular platform for music consumption in Vietnam, with 77% of surveyed respondents using it. Following the giant video streaming platform are the audio-based streaming services, with Zing MP3 (52%) leading the pack, followed by Nhaccuatui (32%) and Spotify (28%).
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Despite YouTube's overall dominance, there are notable differences in music streaming preferences among Vietnamese generations. While YouTube has been gaining significant momentum among Generation X and Generation Y, solidifying its position as the go-to platform for these age groups, it has been experiencing a steady decline in preference rate among Generation Z over the last three quarters. The video streaming giant's extensive library, user-generated content, and ease of access have contributed to its popularity among older generations, but younger audiences are seeking alternative platforms that better cater to their evolving tastes and needs.
The divergence of music streaming platform preferences
The music streaming landscape in Vietnam is undergoing a fascinating transformation, with notable differences in platform preferences emerging among generations. While older generations tend to gravitate towards fewer streaming platforms, younger generations embrace a more diverse range of options.
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Generation X and Generation Y exhibit a strong preference for a limited number of platforms, with 79% and 76% respectively focusing their usage on top services. YouTube and Zing MP3 have emerged as the dominant players for these age groups, capitalising on their extensive music libraries, user-friendly interfaces, and localised content.
In contrast, Generation Z showcases a more eclectic taste in music streaming, with their preferences spread across a wider array of platforms. Four platforms have managed to capture over 10% of Gen Z's preference, indicating a willingness to explore and engage with multiple services. Interestingly, the preference rate for the top two platforms among Gen Z is 14% lower compared to that of Generation Y, further highlighting the diversification of their streaming habits.
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This shift in platform preferences can be attributed to several factors. Gen Z, often referred to as digital natives, has grown up in an era of rapid technological advancement and abundant choices. They are more tech-savvy and open to experimenting with new platforms that cater to their specific needs and interests. Additionally, Gen Z's music consumption is heavily influenced by social media, with platforms like TikTok and Instagram shaping their music discovery and engagement.
As a result, emerging platforms that offer unique features, personalised recommendations, and exclusive content are gaining traction among younger listeners. Spotify, with its algorithm-driven playlists and global appeal, has been making significant inroads in the Vietnamese market, particularly among Gen Z. Other niche platforms focusing on specific genres or underground artists are also carving out their space, appealing to the diverse tastes of this generation.
Thue Quist Thomasen, CEO at Decision Lab, shared:
“The divergence in music streaming preferences across generations presents both challenges and opportunities for the industry. Platforms must adapt their strategies to cater to the distinct needs and behaviours of each age group. While older generations may prioritise familiarity and ease of use, younger generations are seeking more personalised, immersive, and socially connected experiences.”
Implications for business
To succeed in this dynamic landscape, streaming platforms must strike a balance between retaining the loyalty of older generations and capturing the attention of the tech-savvy youth. This may involve offering a mix of localised content, exclusive releases, and innovative features that resonate with different age groups. Collaborations with popular artists, influencers, and brands can also help platforms expand their reach and engage with a wider audience.
As the Vietnamese music streaming market continues to evolve, it is crucial for industry players to stay attuned to the shifting preferences and behaviours of different generations. By understanding and catering to the unique needs of each age group, platforms can position themselves for long-term success in this highly competitive and rapidly changing landscape.
Download the full Connected Consumer Q1 2024 report to learn more.