Global streaming grew 32% in 2019 with Spotify, the market leader with 31% of total revenues and Apple Music coming second with 24% according to global research firm, Counterpoint Technology Market Research. Total global subscriptions reach 358 million in 2019 with Spotify continuing to be the market leader with a 23% year on year growth.
Factors which contributed to this growth include exclusive podcasts, promotional pricing in emerging markets and bundled offers from telcos. Introductory offers and free trials have also encouraged the takeup of paid subscriptions. Counterpoint expect online music streaming subscriptions to grow by 25% to reach 450 million by the end of 2020.
Spotify topped 2019 grabbing a 31% share of the total revenue and a 35% share of the total paid subscriptions. The runner up, Apple Music, followed with a 24% share of total revenues and a 19% share of total paid subscriptions. Due to Apple’s high focus on its services segment which includes Apple Music, its subscription base grew 36% in 2019. Amazon Music subscriptions reached a 15% share in 2019 compared to 10% in 2018.
According to Counterpoint, “Despite global players strongly pushing their music streaming platforms, regional players stand strong in their respective regions, primarily because of regional exposure and high focus on local content. Gaana continues to be the no.1 player in the Indian market, Yandex Music is leading in Russia. Similarly, Anghami leads the Arab world. Tencent Music Group leads the China market with the help of its apps QQ Music, Kugou and Kuwo.”
Whilst the final outcomes from the COVID-19 pandemic will not be known for some while, audio consumption has switched from music streaming to the radio with users tuning to news on TV and radio for updates.
The analysts consider that exclusive content is what is driving paid subscription growth with the streamers acquiring podcast companies and creating specialist channels. 80% of music streaming revenue came from paid subscriptions in 2019 with the rest coming from advertisements and partnerships with brands and telcos highlighting the need to increase paid subscriptions over ad supported revenue models.
