Top

COVID-19 Accelerates Music Streaming Market Growth, Global Subscriptions Hit 394 Million in Q1 2020

  • Spotify continued its good run, growing 30% YoY in terms of music streaming subscriptions
  • Music streaming platforms are focusing on increasing reach by making their services available on different platforms through initiatives like device partnerships and browser availability.
  • Podcasts continue to drive growth.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego – 8th July 2020

Global online music streaming subscriptions spiked 35% YoY in Q1 2020 to reach 394 million subscriptions, according to the latest findings from Counterpoint Research. This was driven by increased usage of the OTT platforms as people stayed at home amid the COVID-19 outbreak. Promotional offers like free trials and subscription price cuts in emerging markets added to the growth. Increase in podcast genres on the music streaming platforms was another big factor for people to tune in.

Research Analyst Abhilash Kumar said, “The growth in paid subscriptions (35% YoY) was once again more than the 20% YoY growth in monthly active users (MAUs). This indicates that people from the free MAU universe are upgrading to become premium subscribers for an improved experience. This also indicates that it is relatively difficult to bring users into the system, but once they come in, it is relatively easy to make them upgrade.”

Spotify continued to lead the charts for Q1 2020 with a market share of 30% in revenue terms and 33% in terms of paid subscriptions. Apple Music followed with 25% revenue share and 21% subscription share. Amazon Music subscriptions grew a strong 104% YoY to capture the third spot. However, in terms of total MAUs, Tencent Music (with the help of QQ Music, Kugou and Kuwo) emerged the winner with a strong hold in China, accounting for 657 million MAUs.

Talking about the top performers, Kumar said, “Spotify growth was driven by strong performances in Asia Pacific and Latin America. It has come up with attractive promotional offers in the emerging markets. To talk about its key market India, which it entered recently, it has made a big price cut on its yearly plan – from INR 1,189 (around US$16) to INR 699 (around US$9). Also, it kept its research game strong to tap different segments. It came up with a new service Spotify Kids, targeting parents with small children, besides podcasts and playlists for pets. Apple Music expanded to 52 new countries and offered 6 months of free subscriptions there. Also, it is adding new features continuously on its platform, like with the iOS 13.4.5 release, users can now share their music on Instagram and Facebook stories, thus increasing social media engagements. The reason for Amazon Music’s 104% YoY growth is that its HD arm Amazon Music HD offered 90 days of free lossless music streaming in Q1 2020.”

Global Music Streaming Revenue by Brand Share

Discussing the Q1 impact of the COVID-19 pandemic on the OTT industry, Kumar said, “Like we said in our Q4 2019 release, the OTT industry experienced an uptick as people stayed at home. However, the listening patterns have changed from listening while commuting to listening at home. Radio, news channels and podcasts related to wellness and meditation have grown. On the devices side, streaming time on smart audio devices and television grew even as listening hours on Android Auto and Car Play declined amid less commute.”

The race for subscriptions is heating up with every passing quarter. While the COVID-19 outbreak proved to be negative for most of the industries, it improved the overall scenario for the music streaming segment. Consumers getting some extra time to explore these platforms accelerated the user growth rate.

The comprehensive and in-depth “Global Online Music Streaming Market Tracker Q1 2020” is available to help track the market. Please contact press(at)counterpointresearch.com for further questions on our research or other press inquiries.

Background

Counterpoint Technology Market Research is a global research firm specializing in technology products in the TMT industry. It services major technology 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.

Analyst Contacts:

Abhilash Kumar

Hanish Bhatia

Related Posts

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

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.
Personal Information 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

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– 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

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
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.