The music streaming market has shown hyper-growth rates today. If we represent it on the graph, then we get a parabola. According to analysts, four out of the five dollars in the entire music industry come from music streaming services. And this trend has become stable, especially in the years when the whole world was faced with quarantine restrictions.
On an annualized basis, the market grew by almost 40%, and the number of music streaming subscribers around the world is approaching 900 million. Market leaders have benefited from this dynamic growth in the first place.
Spotify remains an unsurpassed leader with 35% of the paid subscription market for itself, which equates to a 31% global market share. Spotify’s revenue is particularly impressive despite the introduction of a number of promotions that offered new paid users free access for several months.
Apple Music is doing well too, where instead of compelling promotions, Apple focuses on small and large improvements to the app and dedicated playlists. It boasts a market share of 19% and margins of up to 24%. The business model chosen by the Cupertino-based company seems to be working, so Apple Music is constantly catching up to the leader.
The Amazon service, Amazon Music Unlimited, has settled behind the leaders. 15% of paying subscribers choose this offer, including tracks available in lossless quality. Amazon decided to take the path outlined by Tidal and it looks like it was a very good decision.
Spotify and Apple Music reign globally. However, one should not forget about the very strong local markets. With complete and reliable data, it may be that the final ranking will look very different. Russia is ruled by Yandex Music, India by Gaana, and China by Tencent Music. These are very serious players whose more active involvement outside their home can cause a lot of confusion.
According to analysts, the audio streaming market is still very, very far from saturation. The growth of global music streaming should not be impeded by the state of the global pandemic. Indeed, during its duration, some users are more likely to return to radio, mainly due to quick access to relevant information, but this small churn of customers is effectively offset by the growing popularity of podcasts.
So far, as you can see, the situation in the music streaming market remains relatively stable. The three leaders were determined a few years ago and continues to remain so in 2022.