Podcasts have seen big growth as even individual content creators are trying to cater to this segment of the audience. In the current challenging environment due to the coronavirus, health-, wellness- and meditation-related podcasts have grown. Other genres include personal finance and entertainment. The lockdowns have even caused a shift in listening patterns. Earlier, people would listen to podcasts when commuting. Now, as people are spending more time at home, listening has increased on devices like smart TVs, smart speakers, and more.
To attract more customers, music streaming platforms like Spotify have been bringing promotional offers in key markets like India. The company is offering a yearly subscription plan for just INR 699 (around $9). Apple Music, on the other hand, has expanded to 52 new countries, offering free subscriptions for six months. In terms of revenue share, Spotify leads the pack, followed by Apple Music and Amazon Music.
In the latest episode of ‘The Counterpoint Podcast’, host Maurice Klaehne and research analyst Abhilash Kumar discuss the growth of the music streaming market in Q1 2020. We also deep-dive to understand factors that are driving the growth of podcasts and touch upon the revenue share of the music streaming platform.
Our detailed report on the Global Online Music Streaming Market in Q1 2020 can be found here.
Spotify, the market leader in online music streaming, had a 32% YoY growth in paid subscriptions during 1H 2019.
Apple and YouTube Music are very aggressive and are going to disrupt the regionally segmented market.
While the subscriptions continue to grow in mature markets, the majority of new subscriptions will come from emerging markets especially Brazil, India, and Russia.
Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego – 10th October 2019
Global online music streaming revenues grew 18% year-on-year (YoY) to cross US$11 billion in 1H 2019, according to the latest findings from Counterpoint Research. Monthly Active Users (MAUs) grew 21% YoY in 1H 2019, while paid subscriptions grew 32% YoY. We believe that online music streaming revenues will grow at a rate of more than 20% YoY to reach US$24 billion by the end of 2019.
Commenting on the overall market, Research Analyst, Abhilash Kumar, said, “Online music streaming revenues have grown at an impressive 32% CAGR during 2016-18, which reflects the increased demand for such services by users. Overall, subscriptions account for more than 80% of the industry revenue, while remaining comes from advertisements and partnerships with brands and telcos. We believe the market still has not peaked and will continue to grow at a healthy rate of more than 20% for at least a couple of quarters.”
Spotify leads the chart for 1H 2019 both in terms of total revenue and paid subscriptions. It has a 31% share of the total revenue in the industry and a 35% share of the total paid subscriptions. Apple is close behind with a 25% share of total revenues in the industry and a 20% share of the total paid subscriptions. Meanwhile, Tencent Music has the highest share (31%) of global MAUs, through its subsidiaries QQ Music, Kuwo, and Kugou. However, more than 90% of Tencent users use free services only.
Talking about the top performers, Kumar added, “Strong marketing campaigns, expansion into emerging markets, partnerships with peers of different industries and a focus on podcasts have helped Spotify become the industry leader. Apple is focussing a lot on its services revenue and sees a lot of potential in its music streaming service. Subscription price cuts, partnerships with industry peers, and improvements to the in-app experience have helped Apple. Tencent Music benefits from its social media platform and easy as well as free availability to get a huge user base.”
As of now, music streaming firms are focussing on increasing their paid subscription base through trials and promotional offers, to create loyalty and stickiness. Apple Music’s paid subscriber base grew 55% YoY in 1H 2019. Similarly, the combined paid subscriber base of Google Music and YouTube Music grew 56% YoY. Russian firm Yandex music also grew its paid subscriber base at 89% YoY, albeit a small base.
Commenting on the challenges that the online music streaming industry faces, Senior Analyst, Hanish Bhatia, said, “The music industry still faces various licensing and copyright challenges in different parts of the world. Streaming giants, such as Spotify, Apple, and YouTube, have a significant role to play to harmonize the same. This will be especially important when expanding into emerging markets, where monetization remains a major challenge.”
Looking at the outlook, we believe the competition is going to get more fierce. Increasing the paid subscriber base while at the same time managing costs over the long-term will decide who leads the market.
The comprehensive and in-depth “Global Online Music Streaming Market Tracker 2019 Q2” is available for download here. Please feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press inquiries.
Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.
In order to access
Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.
How to unsubscribe and Termination
You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time.
In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.
Website Content and Copyright
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.
Changes or Updates to the Website
Accuracy of Information:
While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.
Third Party Links:
This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.
Cookies and Tracking
We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans. Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.