Music streaming services grew by 32% in 2019, Spotify leads
Music streaming services went up by 32% globally, reaching 358 million subscriptions, in 2019 with Spotify topping the list, followed by Apple Music
Music streaming services went up by 32% globally, reaching 358 million subscriptions, in 2019 with Spotify topping the list, followed by Apple Music. A research published by Counterpoint shows that the top three music streaming players for 2019 were Spotify, Apple Music and Amazon Music.
While Apple's user base has grown since its launch in 2015, Spotify still remains global market leader in this segment. Apple Music's subscription base grew by 36% YoY echoing a borader increase across the industry.
Commenting on the overall market, Research Analyst, Abhilash Kumar, said, "Paid subscriptions grew 32% YoY compared to 23% YoY growth of total MAUs. This suggests people are ready to pay for music streaming for a hassle-free experience. However, this is not completely user-driven. Music streaming platforms are following a two-step approach to gain subscribers, first registering them to their platform as free users by means of excellent advertising campaigns and secondly pitching them with attractive offers to transfer them to become paying subscribers."
In 2019, Spotify grabbed 31% of the total revenue and 35% of total paid subscribers globally. Apple Music came in second place with 24% of total streaming revenues and a 19% share of the total paid subscriptions.
In third place was Amazon Music with 15% of the market, up from 10% in 2018.
"Spotify maintained its top spot with the help of promotional activities like free Spotify Premium for three months, price cuts, customized campaigns like Spotify and a focus on exclusive content. Tech giants like Amazon, Apple, Google have started focusing on music streaming and have sufficient cash at their disposal to give stiff competition to Spotify. Apple Music is making improvements in its app like the introduction of night mode, curated playlists to target a group, etc. Similarly, Amazon Music has been trying lossless music and is creating its own niche where it competes with Tidal," Kumar added while talking about the top performers.
Counterpoint predicts that global music subscriptions will grow more than 25% in 2020, with numbers exceeding 450 million paid subscribers by the end of the year.