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

Jeeni Blog

Helping the next generation of talent to build a global fanbase

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

/ By

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.

Click HERE to visit or return to jeeni.com

BACK

12
Mar

Jeeni Employing with the Kickstart Scheme

As a fast growing new business, still in its exciting dewy youth, Jeeni are delighted to be employing with the Kickstart Scheme. Launched by Rishi Sunak in July 2020, employers need to be approved by the DWP and are incentivised to take on 16-24 year olds, at risk of long-term unemployment. Jeeni - working with the Kickstart Scheme The successful Kickstart candidates are taken on for a placement of 6 months, given training and support to create skills to help with ongoing permanent employment. The criteria for Kickstart means the jobs offered must be new positions, previously not available at the company. For Jeeni, it works perfectly, as the company is growing and expanding at a rapid rate, so these roles have evolved naturally. Being an online streaming platform, Jeeni is perfect for this particular age group. Their online skills and technical ability, are almost second nature to them. Currently, there are three positions available, Marketing Assistant, Partnership Co-ordinator, Project Manager and joining the team will see these new team players taking on the social media platforms and the partners who work alongside and support Jeeni, evolving the planned projects for 2021 and brainstorming ideas for 2022 and beyond. Jeeni is delighted to be employing and partnering with the Kickstart Scheme. The whole team are looking forward to welcoming the new members, and working alongside them to keep building the Jeeni brand and grow the platform for all the artists, performers, talent and their fans. For more information or to apply for any of the positions available, follow the link below. www.jeeni.com/careers

10
Jun

Facing the Broken Music Industry.

By Adam Cowherd @ AmplifyX.com Did you know that artists take home only 12% of the $43 billion spent on music annually, according to Citigroup? [1] The hip-hop artist Russ put it perfectly when he said, “The music business isn’t set up for the artists to get rich. It’s set up for everyone else to get rich off the artists.” [2] If you start looking deeper into the music industry, one of the first things you’ll discover is how broken it is. Artists are the nucleus of the business, but somehow they’re the individuals left with no ownership of their Intellectual Property (IP), inhibited creative freedom, and only a sliver of the earnings. There are so many entities involved in the value chain of music that it has created a convoluted industry structure that lacks equality and transparency. When we break down the mechanics of the music industry, we see just how many hands are in the pot: record labels, managers, producers, booking agents, and streaming platforms. A report by Ernst & Young highlighted the post-tax payouts of streaming revenue and identified that record labels are taking nearly 75% of the payout. [3] Why are artists today signing with record labels? Signed artists have fans. They do not have a majority of royalties, ownership of their masters, or creative freedom. Artists have historically been enticed to join record labels as a way to grow their popularity, because major labels can provide global brand recognition. But the music industry is in the business of making a profit — not in the business of freebies. The artist’s growth may be guaranteed, but not their wealth. Take Thirty Seconds to Mars for instance: after multiple platinum records, they were still millions of dollars in debt to their label. [4] This is a result of the artist being forced to pay the label back for cash advances. Although advances may seem extremely alluring, many don’t realize how hard these loans will be to recoup from their small slice of royalties. Artists thriving off of their album sales are the exception, not the rule. This recognizable gap in income has inspired a large number of artists to start challenging the status quo of record label contracts. Artists today have more tools and resources to build their career — and wealth — independently. Traditional services formerly tied to record labels, like recording, distribution, and promotion, are becoming commodified. Also, modern artists have a wide range of social media platforms to engage listeners on, from Instagram to TikTok to Triller. Artists can grow their fame and find new fans on their own terms—retaining their rights and independence. Evaluating the industry today, music spending is at an all-time high. Goldman Sachs predicts we will have over 1.1 billion people on paid streaming platforms by 2030, generating over $130 billion in music industry revenue. [5] By pursuing alternative ways to release music, artists can take a larger cut of the profits while retaining ownership of their IP and a majority of royalties. The industry is projected to experience massive growth over the next decade. Artists should reap the rewards.

12
Mar

Rock & Roll Hall of Fame - 2021 Nominations

Rock and Roll Hall of Fame - Cleveland, Ohio USA The nominees are out and the Rock & Roll Hall of Fame 2021 is as eclectic and diverse as ever. The list includes 16 extremely talented acts, with 7 receiving their first nomination. @rockhall made the announcement earlier today and invited fans to join in and vote for their favourites, to get them into this Cathedral of Legends. https://twitter.com/rockhall/status/1359489797056696325 The nominations are announced To qualify for the Rock & Roll Hall of Fame, all nominees have to have released their first commercial recording at least 25 years before their first nomination. The nominations list for the Hall of Fame begins with Mary J. Blige, whose first album 'What's the 411' was released in 1992. This year's Hall of Fame contains seven first-time nominees. Pioneer of the Afrobeat, Fela Kuti, who passed away in 1997, released his first work 'Fela, Fela, Fela' in 1969. The Go-Go's, who formed in 1978 and released their first album, 'Beauty and the Beat' in 1981. Jay-Z began his hugely successful life in the music industry in the mid '90's and is now regarded as one of the most influential artists in Hip-Hop history. His first album 'Reasonable Doubt' hit the charts in 1996. Heavy metal legends Iron Maiden, having been around since the mid '70's with over 40 albums to their discography, have also received their first nomination. Three of the first-timers already appear in the Hall of Fame, though in different guises. Carole King has been nominated for the Hall of Fame 2021, but was inducted in 1990 with David Goffin for her songwriting talents. Tina Turner, was inducted in 1991 but with partner Ike Turner. This is her first solo nomination. The Foo Fighters also make their first appearance. However, Dave Grohl already has a place after being inducted in 2014 as part of the band, Nirvana. The remaining artists in the nominations are, Chaka Khan, LL Cool J, New York Dolls, Rage Against the Machine, Todd Rundgren and Dionne Warwick. https://twitter.com/foofighters/status/1359497561275392006 Foo Fighters receive their first nomination The nominees for 2021 will be announced in May, with the winners being decided by a combination of a voting body, of more than 1,000 artists, historians and music industry members plus the fan vote via the Rock & Roll Hall of Fame’s website.

Jeeni Blog