Streaming Music Health Check Streaming’s Watershed Moment
The 20,000 Foot View: XXX 2016 emerged as a watershed moment for streaming music, with label streaming revenue growing strongly enough to lift overall revenues for all three major labels. Meanwhile Spotify and Apple registered record growth, soon followed by streaming announcements from Amazon, Pandora and iHeart Media. 2016 was the year that streaming stepped up its game, but many of the long-term market challenges remain, such as commercial sustainability of the music subscription business model, concentration of growth and consumer willingness to pay. In this report, we pull together data from record labels, music services and consumers to create a definitive assessment of where the streaming music market has got to.
- By September 2016, Spotify had XXX million subscribers (with XXX billion paid to rights holders to date) while Apple had XXX million subscribers
- Competition is hotting up with announcements from Amazon, Pandora and Vevo
- Each of the three major labels experienced strong streaming year-on-year revenue growth in XXX 2016: Sony XXX Universal XXX and Warner XXX XXX 2016, major label download revenue fell by XXX million quarter-on-quarter, only XXX million less than the XXX million by which streaming grew
- Paid subscribers rose globally from XXX million in XXX 2015 to XXX million in XXX 2016. However, Spotify and Apple accounted for virtually all the XXX of all streams were mobile, rising to XXX for XXX of UK subscribers and XXX of UK free streamers regularly stream on XXX of all streams come from playlists. However, just XXX come from push XXX of UK subscribers say that playlists are replacing albums for them, while XXX say they are using curated playlists more than XXX months ago
- Just XXX of Swedes spend more than XXX on music, reflecting that subscriptions have capped spending of super XXX of subscribers have changed subscription service, falling to just XXX in Sweden thanks to Spotify XXX of UK subscribers sign up to multiple streaming trials with different email addresses, while XXX use free trials to get access to exclusive albums
Companies mentioned in this report: Alphabet, Amazon, Anghami, Apple, Beatport, Deezer, Google, iHeart, KKBox, Last.FM, MelOn, XXX Napster, Orange, Pandora, QQ Music, Rdio, Sony Music, SoundCloud, Spotify, Tidal, Universal Music, Vevo, Warner Music, YouTube