As Counterpoint Research reports paid online music streaming subscriptions witnessed a 32% year-on-year growth last year, expected to grow even more in 2020.
Largely due to exclusive content like podcasts, research analyst Abhilash Kumar said people are “ready” to shell out money for music streaming without the interruption of ads, like the data suggests. A total of 358 million subscriptions are estimated to grow more than 25 percent to surpass 450 million. He clarified by stating: “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.”
Talking about the platforms, the go to for the most of users is Spotify, with 31 percent of the total revenue accumulated and a 35 percent share of total paid subscriptions. Apple Music follows at second with a 24 percent share in total revenue and a 19 percent share of total paid subscription, along with a 36 percent year-on-year growth in 2019 thanks to its services segment. Amazon Music places third with a 15 percent share.
Another thing Kumar briefly touched upon was the ongoing COVID-19 situation, causing audio consumption to jump 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.”