The Streaming Generation! Streaming audio service subscriptions worldwide jumped 32% year-over-year, Spotify leads with 35% global market share
In a recent study by Counterpoint, a global research firm specializing in technology products in the TMT (Technology, Media & Telecommunications) industry, streaming audio service subscriptions worldwide grew by 32% year-on-year (YoY) to reach 358 million subscribers in CY 2019.
The surge in subscriptions was created as a result of the availability of original music and podcast content that attracted users to the platforms and eventually converted them into subscribers. All this alongside promotional activities and subscription packages in new markets. The study also notes that we are in a time when people are willing to pay for streaming services, especially when platforms are implementing two-step moves to acquire subscribers – the Freemium model – first registering users on their platform as free users through excellent advertising campaigns, and secondly offering attractive offers to convert them to paid subscribers. The data is expected to continue to grow by more than another 25% to a level of 450 million global subscribers in 2020.
According to the research, Spotify leads the way, capturing a market share of about 31% of total revenue and a share of 35% of total paid subscribers. Apple Music follows with a share of 24% of total revenue and a share of 19% of total paid subscribers. Due to Apple’s high focus on its services segment, which includes Apple Music, its subscriber base grew by about 36% in 2019. Amazon Music’s subscribers reached a 15% share in 2019 compared to 10% in 2018.
Spotify maintained its top spot with promotional activities such as three months of free Spotify Premium, price discounts and personalized campaigns, and a focus on exclusive content. The study notes that alongside global platforms, there are regional players that still maintain their strength mainly due to regional exposure and a high focus on local content, for example: “Gaana” continues to be the number 1 player in the Indian market, Yandex Music leads in Russia. Similarly, “Anghami” leads the Arab world. Tencent Music Group leads the China market with its apps QQ Music, Kugou and Kuwo.
More than 80% of music streaming revenue came from paid subscriptions, with the rest coming from advertising and brand partnerships. Therefore, increasing paid subscriptions is of primary importance to music streaming platforms.
Link to article on the topic: https://www.counterpointresearch.com/global-online-music-streaming-grew-2019/