Consumers embracing immersive audio and leaning into physical music formats: New Futuresource research study

Audio habits are evolving, with consumers becoming more attentive to immersive audio technologies such as Dolby Atmos. At the same time, they are placing greater emphasis on all physical formats. That’s according to the latest international survey from Futuresource Consulting, which identifies a rising consumer interest in CDs and vinyl, as well as a resurgence in demand for cassettes. 

The most recent edition of the Audio Tech Lifestyles research study was conducted with more than 10,000 audio hardware owners across the USA, UK, Germany, Japan and China in June 2024.  

The power of vinyl continues 

“The fascination with physical media continues to take hold,” says James Duvall, Principal Analyst, Futuresource Consulting. “Not only are consumers buying into physical formats, but they are showing more intent to listen to them. Turntable ownership among vinyl buyers has shot up, with 91% now owning a turntable.” 

Despite this growing trend, more than half of vinyl buyers are still not listening to all the vinyl they buy – a statistic even higher amongst GenZs. “Encouragingly, our research shows that GenZs would listen to their vinyl purchases if they owned a turntable,” says Duvall, “presenting a clear opportunity for manufacturers.” 

Spatial audio making its mark

The Futuresource study also shows that, after years of market development, consumer awareness of immersive audio technologies is maturing. 83% of respondents who are aware of the technology said that they have already listened to content in spatial audio, and 40% said that it is important that any audio products they buy in the future support spatial audio. 

“Consumers tell us they’ve experienced spatial audio either through music or movies,” says Duvall. “And we’re seeing the direct effects of industry investment in expanding the catalogue of music available in spatial audio. More than three in every four respondents who listen to music in spatial audio do so at least ‘sometimes’ or even ‘regularly’. 

“High-resolution formats are also beginning to cut through, with more than 55% of all respondents telling us they have experienced audio content in lossless audio.” 

Spotify still on top of streaming

Spotify continues to dominate the music streaming services, though YouTube Music has gained ground. It is now the second most popular streaming service in the USA, as well as among Gen-Zs and Millennials. Amazon Music Unlimited continues to be particularly popular with streaming subscribers aged 59 and over. 

Diving deeper into streaming services retention also shows Spotify subscribers have been subscribed for more than three years. This stands in contrast to YouTube Music, whose subscribers have been clients for less than a year. 

Cassettes riding a growth curve 

“In addition to CDs and vinyl, one-in-four respondents purchased a cassette during the last year. However, when we focus on GenZ, that figure nearly doubles. We’re seeing a relatively even split between new and second-hand purchases, and similar to the vinyl revolution of a few years ago, the majority of cassette buyers don’t have any way of listening to their purchases.” 

The evolving behaviours of audio consumers 

This research forms one of three parts of the new Audio Tech Lifestyles report. The trio of reports explores the evolving habits and behaviours of audio consumers across music, headphones, and home audio. For further information about this flagship study, please get in touch with Benedict Greenwood at benedict.greenwood@futuresource-hq.com.  

About the author

James Duvall

James Duvall joined Futuresource as the Principal Analyst for Entertainment in November 2022. He is responsible for the delivery of all consumer research and projects across Home Entertainment, covering over twenty regions for Futuresource’s Video Insight reports, the bi-annual Living with Digital survey, and the bi-annual Music Streaming report. Before Futuresource, James spent six years leading the insight and research programme at the British Association of Screen Entertainment and the Digital Entertainment Group International (DEGI), building upon his wealth of experience within insight teams for US Studios.