Global Online Music Streaming Grew 32% to over 350 Million Subscriptions in 2019

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Global Online Music Streaming Grew 32% to over 350 Million Subscriptions in 2019

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By Abhilash Kumar

Spotify continues to be the market leader and recorded a 23% YoY growth in total revenue during CY 2019.
Music streamers are focusing on creating exclusive content with podcasts continuing to feature strongly in 2020.

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego – 3rd April 2020

Global online music streaming subscriptions grew 32% year-on-year (YoY) reaching 358 million subscriptions in CY 2019, according to the latest findings from Counterpoint Research. This is driven by the availability of exclusive content like podcasts, originals which attracted people towards the platform and eventually turned them as subscribers. Also, promotional activities like price cuts in subscriptions in emerging markets, bundled offers from telcos added to the growth. We expect that online music streaming subscriptions to grow more than 25% YoY to exceed 450 million subscriptions by the end of 2020.

Commenting on the overall market, Research Analyst, Abhilash Kumar, said, “Paid subscriptions grew 32% YoY compared to 23% YoY growth of total MAUs. This suggests people are ready to pay for music streaming for a hassle-free experience. However, this is not completely user-driven. 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.”

Spotify topped CY 2019 grabbing a 31% share of the total revenue and a 35% share of the total paid subscriptions. The runner up, Apple Music, follows with a 24% share of total revenues in the industry and a 19% share of the total paid subscriptions. Due to Apple’s high focus on its services segment which includes Apple Music, its subscription base grew 36% YoY in CY 2019. Amazon Music subscriptions reached a 15% share in 2019 compared to 10% in 2018.

Talking about the top performers, Kumar added, “Spotify maintained its top spot with the help of promotional activities like free Spotify Premium for three months, price cuts, customized campaigns like Spotify and a focus on exclusive content. Tech giants like Amazon, Apple, Google have started focusing on music streaming and have sufficient cash at their disposal to give stiff competition to Spotify. Apple Music is making improvements in its app like the introduction of night mode, curated playlists to target a group, etc. Similarly, Amazon Music has been trying lossless music and is creating its own niche where it competes with Tidal.”

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.

Discussing the impact of the COVID-19 pandemic on the OTT industry, 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.”

What’s common is that both the regional and global players are focusing a lot on building exclusive content. Acquiring podcast companies and creating their own channels are all being undertaken. It’s often exclusive content that drives paid subscription growth.

More than 80% of music streaming revenue came from paid subscriptions. The rest came from advertisements and partnerships with brands and telcos. Therefore, increasing paid subscriptions is of prime importance for music streaming platforms.

The comprehensive and in-depth chain of reports on Global Online Music Streaming Market for Q4 2019 is available to help track the market in terms of MAUs by region, paid subscriptions by region, revenues, and ARPU. To view the global report in terms of users, revenues and ARPU, click here. For regional analysis on MAUs and paid subscriptions, click here. Please contact press(at)counterpointresearch.com for further questions regarding our in-depth research, insights or other press inquiries.

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

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03
Sep

Jeeni reaches £100K funding target in 6 days

Day 6: Jeeni announces they have reached their funding target in 6 days and now aim to overfund. If you want to see our pitch click HERE. Jeeni, the social music platform that brings artists closer to their fans and shares revenue ethically, has successfully raised over £340K on Crowdcube across three rounds. With 350million streamed music subscribers and market growth up by 39% this year, Jeeni is likely to ride the wave and be a huge success, not only with unsigned musicians and performers but with their superfans. “We set a target to raise £100,000 for 2.4% with a pre-market valuation of £4M,” says Jeeni founder Shena Mitchell. “And while we have the support of several major investors, the beauty of Crowdcube is that artists themselves can actually own a stake in the company for as little as £10.” Shena continues, “Jeeni’s mission is to support unsigned music and performers, by helping them build a fanbase. We aim to fast-track careers in the music business, and make sure they take the lion’s share of the revenue that’s raised. Jeeni is needed more than ever in this Covid-19 New Normal, and we have proved that the demand is high. Currently we can only support 100,000 videos, so we must now move up a gear as we head for global roll-out. This Round Three investment will be used to scale up again and launch our next-generation platform. It will also be used to develop our iOS and Android apps. With the financial backing secured, we’ll be creating new jobs in the area, which is great for the local economy. When you consider the wealth of music talent in Portsmouth – hosting over 2,000 music events a year with Victorious, The Guildhall, Band Stand, Wedgewood Rooms, and all the Portsmouth Festivities and pubs – we’re alive to the opportunities of our local music culture, creativity and talent. But with live venues locked down for now, the online opportunity of Jeeni is greatly increased. It’s so cool to think someone reading this might choose to invest in Jeeni now with just £10, and then use Jeeni to build their own fanbase for fame and success! We’re going to try hard to make sure that happens.” JEENI is currently inviting investment on Crowdcube. To find out how to get involved please join our mailing list for updates or check out our fundraising pitch. If you want to see our pitch click HERE.

10
Dec

Portsmouth Based Tech Start-Up encourages local business to benefit from Kickstart, as December 17 deadline looms.

Local companies are up against the clock if they want to benefit from Chancellor Rishi Sunak’s generosity. The deadline to register for the Government Kickstart scheme, which pays for hand-picked new recruits to boost businesses, is Friday 17th December, so time is of the essence. Local entrepreneur Dr Shena Mitchell is founder of Jeeni, the ethical music streaming service with an audience outreach of over 3 million music lovers, and she is full of praise for Kickstart. “I have been hugely impressed by the quality of the applications, all our new recruits have been brilliant and they are a great asset to my team. So far we have recruited Marketing Executives, Sales Executives, Technical Developers, a Partnership Coordinator, as well as a Human Resource Manager to handle all these new recruits for us. In fact, we’ve been so impressed with the quality of our new applicants, that we’ve applied for another six recruits.” Her company has been working with their specialist partners Gradfuel, who are consultants for the Department of Work and Pensions, which is where the Kickstart grant funding comes from. “It’s a great opportunity for companies like ours to bring keen young graduates on board for a minimum of six months, and scale up our business. We not only do the right thing by helping new talent, but the cream of the crop could stay with us for years to come. Best of all, there’s no financial risk, with over £8,000 worth of grant money to support each young person taken on board.” The Kickstarter benefits are remarkably generous, and with only days left to register, Shena is offering to help local businesses take advantage. Benefits include £1,500 upfront grant funding from the UK Government, for each young person they enrol, in addition to their salary. 100% of their salary covered for up to 6 months and up to 100 hours a month. “Our partners Gradfuel are the experts in the market, and have raised £18.7m in Kickstart grant funding so far. We’ve had a 99.5% success rate in our applications, against the market average of 22%, supporting over 1,400 companies to process their Kickstart applications.” Full information and a direct link to registering for Kickstart applications is available on https://jeeni.com/kickstart/ shena@jenni.com 07703567196

12
Oct

Kickstart Scheme - Jeeni Marketing Executive Freya Devlin

Launched by Rishi Sunak last September as a result of the COVID-19 pandemic. The Government’s Kickstart Scheme provides funding to employers to create jobs for 16–24-year-olds who are receiving Universal Credit and at risk of long-term unemployment. Jeeni have already successfully taken on young people through the scheme and will continue doing so. The successful Kickstart employees are taken on for initial placement of up to 6 months. And given training to learn new skills, and ongoing support to look for long-term, permanent work. What was your role within Jeeni? My title within Jeeni was marketing executive, but my responsibilities were very broad. Everything from content planning, crowdfunding, PR and copywriting. Although I mostly focused on promoting Jeeni events, writing blogs and social media management. What skills did you believe you have developed during your time at Jeeni? I’ve developed many skills everything from SEO to project planning. But most of all I believe I’ve developed my soft skills such as team working, critical thinking, and communication. Working remotely it's important to utilise time management and to be extremely organised, so these are skills I've further developed. Additionally, I've been encouraged to work both independently and collaborate with colleagues. In doing so I have become more self-sufficient as well as improving my interpersonal skills. What did you enjoy the most during your time at Jeeni? Overall, I have enjoyed my entire experience working at Jeeni as part of the Kickstart Scheme. A few notable things would definitely be promoting various types of artists, marketing for events and working alongside a team who are passionate about the work that they do. Seeing the success of projects I've worked on and the experience I've gained has helped me become more confident in my own capabilities. Do you have any tips for future Jeeni employees, that will help them succeed? I think that it’s important to trust in your own abilities while also taking on board advice from others and learning along the way. Jeeni is such a supportive company, that encourages creativity and personal growth. So I believe that just being yourself and working hard will guarantee success. What would you say are some of the best aspects / features of Jeeni? Jeeni is an incredible platform for creatives to share their work, they are treated fairly while keeping everything that they earn. It's a welcome contrast to the majority of streaming services that are available. Jeeni shines a spotlight on independent artists who otherwise may struggle to be heard over the noise of big record labels. Furthermore, Jeeni supports all types of creatives not just music artists but dancers, animators, voice actors and more. Do you have any suggestions on how Jeeni could perhaps be more effective as an overall streaming platform? To just keep improving on what they are already doing and to remain focused on independent talent. Goals for the future? I’d like to keep learning and improving my skills, take on bigger projects, and hopefully be working for a company that values its staff, customers, and creative talent just as Jeeni does. It's been a great opportunity to work with Jeeni through the Kickstart Scheme. And the experience I've gained will continue to support me throughout my career.

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