Music Lessons Market

Part
01
of three
Part
01

In Home Music Lessons Market Size

While there is no pre-existing information to fully answer your question, we've used the available data to pull together key findings: We triangulate that the market for music lessons in the US is $1.4 billion, though there is evidence that this market is shrinking. We are unable to determine from public sources how much of that market is for in-home lessons and find it likely that nobody really knows due to the prevalence of tutors being paid under the table.
Below you'll find an outline of our research methodology to better understand why information you've requested is publicly unavailable, as well as a deep dive into our findings.

METHODOLOGY

We started our research by investigating the websites of community music centers, music teacher associations (like the MTNA), and other organizations and individuals who offer tutoring in music. However, while this provided us with a multitude of examples of tutors, none of these sources had any information on the number of music tutors who are in the US, let alone how many offer at-home services. We therefore broadened our search to include scholarly articles, polling companies (e.g., Pew Research), and market reports. While we found one or two market reports which may contain the answer (see below), there was insufficient information presented in its abstract to serve our purposes.
We next attempted to triangulate an answer by using a combination of the available data points; e.g., if we could establish how many tutors in the US offer at-home services, the average number of clients seen in a week, and the average charge for this service, we could calculate the market. However, the available information did not provide us with sufficient data to provide anything more than an uneducated guess.
We hypothesize that this information is not readily available because it is so difficult to determine. Music tutors, after all, are often paid under the table, which would make it difficult for anyone to determine the true market size.
As a final note, it is nominally Wonder’s practice to use only sources that have been published in the last 24 months in order to provide the most up-to-date information available. In this case, however, nearly all of the most useful data points were from older sources. We will indicate the year of publication of these sources for the sake of transparency.

USEFUL FINDINGS

According to Statista, in 2012 35.6% of adults in the US claimed to have taken music classes at some point in their lives. However, Statista did not provide any information on how many were enrolled in any given year or how many hours of classes the average person took, let alone where those classes took place, so we could not use this information in a triangulation. While this does suggest that the overall market size for music lessons is fairly large, other evidence indicates that the market is shrinking.
A report by TakeLessons from 2014 (which would normally be outside of Wonder’s criteria, but in this case was one of the very few sources with useful information) indicates that the national average rate people are willing to pay for in-home music lessons is about $50 per hour, which is 13-15% higher than they are willing to pay for in-studio lessons. This is somewhat at odds with a report from Indeed which pegs the average music teacher’s pay at $28.24 per hour. The difference may be explained by the fact that the musical instrument and supply industry has been in decline for the past five years, which we judge likely to result in a similar decline in the demand for music tutors. Less demand, after all, results in lower prices.
However, Indeed’s report does give us some useful information to triangulate the total music tutoring market. The Music Teachers National Association (MTNA) claims to represent “24,000 committed music professionals.” While it is highly unlikely that every single music tutor is among those 24,000, according to the Bureau of Labor Statistics there are only 95,110 individuals who teach post-secondary art, drama, and music in the United States. Therefore, 24,000 teaching music appears to be a reasonable figure. Taking the average pay of $28.24 an hour and assuming 40 hour work weeks, the market for music teachers in general would be approximately $1.4 billion ($28.24 x 24,000 x 40 hours x 52 weeks). We are, of course, unable to determine how much of that market is for in-home lessons.
We were unable to find any marketing reports specific to music tutoring, but did find two reports on the private tutoring industry, one at the global level and one specific to the US. It is uncertain from the abstracts whether music tutoring, let alone at-home music tutoring, are covered in these reports. If having this information is crucial enough to warrant the expense, we advise contacting the publisher to find out if they report on this particular niche.

CONCLUSION

Due to a lack of public sources, we are unable to determine the market size for in-home music tutoring, though we triangulate the market for post-secondary music lessons at $1.4 billion in the US. We have also found evidence that this market is shrinking, depressing the hourly rate commanded by tutors.

Part
02
of three
Part
02

In Home Music Lesson Top Providers, Part 1

While some revenue information was not available, we were able to compile a list of the top providers of in home and/or online music lessons in the markets provided. Due to the nature of such a niche market, statistical information in regard to individual markets is unavailable. The following is a list of providers with their contact information.

Methodology

Revenue for private providers is not readily available or required to be reported and neither was the number of lessons taught by each provider. That's why, in this case, 3 top providers were selected based on their popularity, number of teachers, and students served for each metropolitan market. For the national providers that service all three markets, company revenue was used in determining the top providers. Due to the fact that revenue information for each individual metropolitan market was unavailable there is a local provider listed for each and a separate section for marketplaces that operate in all three markets.

Local Providers and Contact Information

Washington DC

Website: www.bnbmusiclessons.com
Email: bhagwan@bnbmusiclessons.com
Phone: 301-355-2082

San Diego

Website: www.sallypiano.com
Address: 12364 Carmel Country Rd.
San Diego, CA 92130
Phone: 858-552-0822

Austin

Website: www.clubztutoring.com
Phone: 512-982-6637

National Providers and Contact Information

Address: 225 Broadway, Suite 600
San Diego, CA 92101
Website: www.takelessons.com
Phone: 800-959-2497

Website: www.usmusiclessons.com
Address: 17150 Via Del Campo,
San Diego, CA 92127
Phone: 858-451-7265
Email: info@usmusiclessons.com

Website: www.taylorrobinsonmusic.com
Phone: 800-827-6521

Conclusion

The top in home and/or online marketplaces for music lessons were identified with respect to revenues, as available, and popularity among internet searches for the specific metropolitan markets. Available revenues are listed as is the contact information for each provider.


Part
03
of three
Part
03

Music Lessons Competitive Analysis

We reviewed three online companies that offer music lessons. These companies include Take Lessons, Lessons, and Musika. We were able to find lots of information about two of the providers which are where most of the sources have been identified. However, the third provider, Musika, had scarce information on its website, so it is unclear what services it offers exactly. With the available information, we were able to compile a comprehensive overview of two of the companies. This overview is provided below as well as in the attached spreadsheet.

Take Lessons

Take Lessons is an online platform that aims to connect students with the right teachers. Take Lessons began with offering only music lessons in 2006, it has now expanded its learning portfolio to include dance, theatre, science and many more subject topics.

Take Lessons caters to specific demographics including adults, kids, seniors and special needs students. The latter option gives Take Lessons an advantage over its competitors as it allows for a more inclusive and accessible learning experience. Furthermore, the company provides Live Classes where Live sessions are conducted for groups of students on particular days.

TakeLessons promises to take away the headache of finding teachers and managing payment schedules. It also offers users the ability to track their progress which is a valuable feature especially for those who are too busy to organize this aspect of their learning.

Payments for lessons have to be made in advance as there is no subscription rate listed on the company website. The benefit of this method is that students are guaranteed a teacher and if they are not entirely satisfied with their teacher then Take Lessons offers a refund on unused credits or helps them find a new teacher. Teachers list their prices on their profiles, making it difficult to determine a standard rate for subjects.

While a precise number of teacher is not available, it is likely that there an estimated 3,241. This number was reached by multiplying the 20 teachers listed per page on the website active teachers section by the 162 pages in this section. An additional teacher was added due to the fact that there was a single teacher listed on the 163rd page (20*162=3240+1=3241).

The Live Lessons feature requires payment. Take Lessons allows a 30-day free trial giving users access to 200 online group sessions. Following the trial period, Take Lessons charges $19.95 per month. Take Lessons also offers a gift option where an individual can gift a membership worth $50-$5,000 to family members or friends.

Take Lessons’ revenue stands at a hefty $14.8million indicating the large level of success this company enjoys.

Lessons

Lessons offer similar services as Take Lessons. It also attempts to bring together students and expert instructors through its online platform. The company provides services in 50 states across the USA covering a wide range of subject topics. They reportedly have 400,000 new students a year and 18,000 active teachers. According to Owler, the company has also received less than a million in funding. A more precise estimate of $300,000 in funding was found on Crunchbase.

Courses are offered to students younger than 6, all the way up to people who are 65 or older. It is clear, that Lessons tailors for all age groups. Their course prices vary, however, some popular courses range in price from $20-60.

Lessons allow the students to pay the tutors directly, as opposed to using the website's inbuilt services for managing the payments. This option is considerably better for teachers as they get to keep 100% of their earnings when compared to other competitors. The company offers a standard rate for a variety of lessons which and each page provides a detailed breakdown of prices and subscription packages.

Musika

Currently, the company services "2643 cities across America" and has taught over 1 million lessons. Musika has an estimated revenue of $1.7 million. Prospective users of Musika tell the platform what their needs are by answering their questionnaire and then booking a risk-free trial lesson. From this point, users can either choose to work with a different teacher, or they can continue with their initial instructor. This company provides students with the opportunity to schedule and cancel lessons as they see fit.

Students can range in age from 3-90 and there are no long-term contracts. Unless the company is contacted directly, it is not clear from the website what services this company offers. Details on the contents of each lesson are also not publicly accessible. Precise rates are available by inputting the desired zip code. Their payment options are processed by debit or credit card and are broken down by 30, 40, and 60-minute packages.

CONCLUSION

Take Lessons and Lessons provides a detailed overview for individuals interested in learning something new. Musika is the only exception to this. Whilst each company offers certain benefits, for example, Take Lessons caters to students with special needs and Lessons offers the largest variety of courses, each company offers a similar standard of service. In practice, students fill out a short questionnaire, the company gets back to them with proposals for teachers, and students can either accept or find a new teacher. What differs significantly between Take Lessons and Lessons is pricing. Lessons offer a standard range of prices across numerous subjects, whereas Take Lessons prices are dependent on the teacher. These details can be found in the attached spreadsheet.
Sources
Sources