As per research firm Counterpoint Research, the online music streaming service market grew by a record 23% YoY in 2019 and reached a total of 368 million subscribers. The growth was driven by podcasts and original content which attracted consumers and turned them into subscribers. Price cuts and other promotional offers from major streaming services also helped drive growth.
Spotify was the number one music streaming service in 2019 and had 35% of the total paid subscribers and accounted for 31% of the total revenue. Spotify’s growth was led by its promotional activities like offering free Spotify Premium for three months or bundling Google Home with its premium subscription.
Apple Music was second and had 19% of the total paid subscribers and 24% of the total revenues. Apple Music posted a healthy growth of 36% YoY in 2019. As for Amazon Music, it had 15% subscriptions compared to 10% in 2018.
In selected markets, regional streaming services continued to perform better than Spotify and Apple Music. In India, for example, Gaana was the number one streaming service while in Russia Yandex Music took the lead.
While the smartphone industry as a whole will see a decline in sales in 2020 due to the COVID-19 pandemic, music streaming services are expecting to see an increase in their userbase.
Discussing the impact of the COVID-19 pandemic on the OTT industry,Abhilash Kumar added, “We expect the OTT sector will experience an uptick as people stay at home actively tracking the latest updates. During this outbreak, audio OTT consumption has switched from music streaming to the radio. People in highly affected areas are worried about the outbreak and are therefore continuously tuned to news on TV/radio for updates. The traction of news channels and podcasts saw an upswing while that for music streaming dropped.”
The report notes that regional as well as global music streaming players are looking to build an exclusive content library by creating their own channels or acquiring podcasts. Almost 80% of the revenue generated by the music streaming industry came from paid subscriptions while the rest came from ads and brand partnerships. For 2020, the music streaming industry is expected to grow by more than 25% YoY and cross the 450 million subscribers mark.[Via Counterpoint Research]