Nikkei BP Research Institute

In Japan, the number of radio listeners is increasing rapidly. Due to the influence of the new coronavirus, people are refraining from going out, closed school, and teleworking, and the chances of listening to the radio at home are increasing. The same is true of China, where the “ear economy” that uses voice as a medium, which is premised on “listening” like radio, is expanding. From 2019 to 2020, the number of users in the online voice market will increase by more than 10%, and 70% of users have been charged. Many players have entered the market and are competing. (Nikkei BP Research Institute)

Recently, Himalayan, which aims to become the largest voice platform in the stock market, has submitted an initial public offering (IPO) application to the U.S. Stock Exchange Commission and revealed that it plans to list on the New York Stock Exchange. I made it. The voice SNS "Clubhouse", which is the two largest voice platforms in the United States, and the music distribution giant "Spotify" are fighting fiercely in the field of voice platforms. In addition, Facebook, a major US SNS company, has recently announced plans to launch multiple new products with the theme of voice SNS. Prior to that, Apple was also considering launching its own paid high-level voice platform service.

The huge business of the "ear economy" has gained even more momentum as major players have moved to voice services and pioneered this field deeply. As the number of scenes that users use for a long time, such as smart homes and the in-vehicle Internet (IoV), has increased, audio content and usage scenes have shown enormous development potential in recent years.

Is the "ear economy" flourishing?

If you put on your earphones and open the "Listen" app, the content you hear from your ears will make you forget the loneliness of your commute. Listen to music on the way and sketch comedy on the way back ... Over the last few years, more and more people are using the broadcaster's apps. Especially since last year, many people's entertainment needs have moved online due to the influence of the new coronavirus infection, so the number of users of online viewing type apps has increased further, centering on apps that "listen" to books. The online voice platform has entered an explosive growth period.

"Listening" has become a trend, and the "ear economy" using voice as a medium has developed rapidly, becoming a darling of an era that supports the development of the "browsing market."

According to the data compiled by the media advisory, the number of users of the Chinese online voice market in 2019 will reach 489 million, and it is estimated that it will reach 542 million in 2020. Of these, more than 70% of users answered that they had paid for an online voice platform, suggesting the great potential for the development of the "ear economy."

According to the data of the company information site inspection, the annual number of registered voice-related companies in China increased year by year in 11-19, surpassing 2,000 for the first time in 2014 and 5,000 in 2017. In 2019, it reached a record high of 7544 companies. In 2020, the number of registered companies decreased by 33% from the previous year to 5047 due to the impact of major changes in the capital environment.

Effective use of gap time in "ear economy"

Since voice has the characteristic of "getting into your ears without being conscious of listening," it is becoming more and more valuable in this era. Unlike "seeing" where you have to focus your body and mind, you can do other things while listening to the voice. In today's world where the rhythm of life is getting faster and faster, you can use the gap time to catch information without using your eyes.

From traditional broadcast programs to comics, radio dramas, audiobooks, talk shows, and even paid knowledge content, the online audio platform brings together content from all disciplines, with a large number of users across ages and industries. Is taken in.

According to the data from the media advisory, the five major online voice usage scenes in China are before going to bed, on the way to work, during a walk, during housework, and during lunch break. Also, more than 20% of people listen to online audio during training, travel, business trips, study and work. Night is a time when the pace of increase in users is even faster. Himalayan data shows that more and more users are listening to online audio during night choking, before going to bed, and in the car. Among those who use the Himalayas at night, the percentages of "after 00 (born in the 2000s)" and "after 80 (born in the 1980s)" are high, with "after 00" at 23.53% and "after 80" at 40.46%. It is said to occupy.

Males account for 56.6% of audiobook users, clearly ahead of females. The keywords that talk about users are "highly educated", "young people", and "first-line / second-line cities", with 26-30 years old accounting for 29.1% and 31-40 years old accounting for 34.9%. Residents accounted for nearly 75%, and 58.7% had a college degree or above.

A fierce battle between "ear economy" and short videos

Despite being both products of the Internet, audio platforms have always been pushed by online videos, especially short videos. With the growth of the video industry peaking last year, the market is finally turning to voice platforms. Compared to the video industry, voice platforms face far lower hurdles for entrants, such as the equipment needed to create content. The introductory hurdle is lower. Therefore, the sender of the voice platform does not need to spend a lot of money, time, and energy other than the content, can concentrate on the content production, save the cost of delivery from the platform, and spend the money for better content. Can be applied to production.

Also, unlike just receiving the content that the video viewing is flowing, the audio platform is immersive, the recipient enters the public audio space, listens carefully to the content, and at the same time thinks about the theme taken up by the sender together. .. Users in the world of voice do not come and go frequently, and many people listen to the complete content to the end. In addition, they seek a deeper personal emotional connection with the sender, and their loyalty to the platform of their choice often exceeds that of other streaming platforms.

Comparing content, short videos generally deliver rapidly consumed content, but audio platforms are long audio and feature continuous audiobooks (radio dramas). Therefore, compared to short videos and music, the users who have taken in the audio platform are more highly educated and high-income (68% in the United States and 59% in China) with college graduates and above, and the loyalty to the platform is high. It is characterized by a strong desire to subscribe to paid services, and it can be said that the voice platform provided a broad and stable foundation for expanding the business market in the future.

Of course, when compared to video, the biggest competitive advantage of audio platforms is that they can be enjoyed anywhere, even when not in front of the display. A voice platform frees users from a fixed location or in front of a display, removes physical restrictions when using content, and frees their eyes from the screen.

How much potential does the "ear economy" grow?

In addition to voice platforms and audiobooks, "ear economy" is showing new vitality in the SNS field. Before the Chinese New Year (Lunar New Year, February 12th) of 21st, Tesla's CEO Elon Musk took the form of "live commerce", a club of voice SNS apps. Houses have become very popular all over the world. After that, several Chinese clubhouses appeared. First, the audience released the dialogue application "Dialogue?". After that, Komai's "Yonesai" was newly released after 7 days of service suspension, and became a voice exchange application for enthusiasts. After that, NetEase Cloud Music released the built-in module "Kuai", and Kuaishou also announced the voice SNS application "Hisen".

According to a research report by Kaigen Securities, the clubhouse is a gathering of celebrities and top stars from various industries, constantly launching high-quality audio content, maintaining high standards, and at the same time, many users are starting to follow suit. Currently, major overseas online voice SNS platforms are invading subdivided fields. It seems likely that the development model of small but excellent service will stand out more.

Technology empowers and expands the potential for "ear economy" development

With the development of technology, voice and smart hardware such as in-vehicle equipment of automobiles, smart homes, smart speakers, and smart wearable devices are connected, and voice permeates various scenes of daily life, becoming an "ear economy". It brought about the possibility of further development.

Whether it's 5G, self-driving cars, smart cars, IoVs, or even devices such as smart speakers and smart homes, it's all energizing the market competition for voice platforms. Features such as 5G ultra-fast, low latency, and high volume connectivity make voice platform uploads and downloads even faster, more stable connections, and more convenient consumption. Vehicular automation has become much safer, making users more free and comfortable to use the voice platform. At the same time, IoV technology enables seamless switching between different devices on online music platforms, making user content consumption more enjoyable. Smart speakers and smart homes enable voice interaction, and with the improvement of sound quality and performance, the usage scene of voice platforms in indoor spaces is expanding. (Source: Japanese version of People's Network)

・ China completes Internet big data center for national industry by the end of the year ・ White paper on "6G overall vision and potential key technology" announced