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

02
Sep

Jeeni supports Escape to the Farm

Jeeni supports Arms Around the Child’s Escape to the Farm Looking for a family day out that supports children in third world countries? Presenting Arms Around The Child’s Escape to the Farm! Located at the idyllic Rushmere Farm in Hambledon, in Southern England's fabulous South Downs National Park, Escape to the Farm is a yoga retreat come summer camp where there is something for everyone. Explore food workshops and pizza making, poetry, eco talks and much more. There’s something for everyone to explore! Need some relaxing after a long six weeks holiday? Try one of the yoga, tai chi or meditation groups, guaranteed to help you take some breathing space and let go of all your worries. With live acoustic performances, storytelling and sound healing, there’s plenty of noise to block out the hustle and bustle of everyday life at Escape to the Farm. Are you a budding art enthusiast? Try your hand at life and nature drawing and learn a new skill. Come evening time you can gather around a roaring campfire before heading to bed in a beautiful yurt or tent of your own. Day Ticket £20 Day Ticket + Lunch & Dinner £35 Camping Per Night £10 Enquire for Accommodation Options Luxury Accommodation Yurts & Camping Escape to the Farm is a fundraiser for the Arms Around The Child charity who are raising money to build a school in Ghana for underprivileged children. Jeeni supports Arms Around The Child, who provide generously for children living in extreme adversity globally. To donate directly to Arms Around The Child you can go to their website www.armsaroundthechild.org/. Arms Around The Child seek to provide sanctuary, community, warmth protection, education, healthcare, safety, family, equality, love, hope and respect. Contact Jeeni Ambassador Ellie Milner for more details and get yourselves down to Escape to the Farm for a day of fun that will leave you fulfilled in all the best ways. Ellie: +447801292553 info@armsaroundthechild.org www.armsaroundthechild.org/

11
Jun

Inside Story with Keithian

Kethian is a Singer, Songwriter, Musician, Actor and Producer based in the US and who performed his song ‘Communicate’ in the JAM Festival collaboration in April. Kethian is relaxing in his Californian back yard as the interview with Kate takes place. “You recorded your track ‘Communicate’ live from your home studio for the JAM Festival, we have all faced the technical difficulties of working from home over the last year, but did you face any whilst recording?” she asks. He says that there were not any technical issues as such but recording at home always presents some issues, for example the neighbour had the lawnmower on but luckily, he didn’t think we could hear. His song ‘Communicate’ is beautiful and very emotive. When asked about his inspiration for writing it, he said that it came from his friend, who so sadly committed suicide, and so the song was an open letter to this friend, as well as anyone else that is struggling and needs to communicate as it is one of those things that “you actually have to do to feel better or to get your thoughts out, so that’s exactly what that song was about.” Kethian was born in New Orleans into a “showbizzy family.” Kate asks about what influence their work had on him as a child growing up and how it inspired his music and career. He grew up in Louisiana and Texas, “New Orleans is just full of music, everywhere you go”, his parents were in music as well as his grandparents so making music for him was something that “just happened, I’ve never known any different.” Kethian was previously signed to a major record label, but has ended up going independent, Kate asks why he made this decision “It wasn’t really the best experience. I figured if I went independent, I could give myself the better experience, and control creativity and stuff like that, and now that I’m my own everything, I’m able to understand myself more as an artist, what I need, what I want, how I want to promote, or what songs I want to choose” he shouts excitedly. In 2018 Kethian was working on music for Rhianna, he said “it was one of those things that just happened, although she hasn’t actually released the music yet and I wish I had some insider knowledge as to when she will, but I don’t! Basically, after I left the label, I was a writer and producer...I was writing for various artists and one of them said ‘this is gonna be for Rhianna’ and I was like ‘what?!’ and that’s how it happened. I met the [person] that I work with now and produce most of my music with currently and it has just been cohesive since then.” Kethian is currently raising investment for his next project: “It makes me feel really good as an artist when someone invests in me because it means that they believe in me as an artist, and as an art, a lot of our motivation and motivators are to make people happy and just to feel something or have an outlet, so to be supported in this way makes me feel so much more confident.” In response to this comment, Kate explains what Jeeni is: a platform for new and upcoming artists which seeks to support them in the best way possible and asks Kethian what his advice would be for aspiring artists that are just starting out. “Simply be the best artist that you can be and be the most you can be in life for you. It’s one of those things…being an artist is so giving, you walk around with your art, you are your art, and so when someone says something a little different or a little insane, it touches you more…just be confident, stay close to your art and stay close to you as a person and just love every bit of it.” What can we expect from him in the future? He expresses his excitement in regard to doing more shows with Jeeni and is hopeful for the future of live shows and touring as the world returns to normality after the Covid-19 pandemic. He says that he ultimately wants to “put out as much music as my fans want me to and as much as I want.” Through AmplifyX, one of our collaborators from the JAM festival, Kethian is working on his new EP called Green Clouds which is due at the end of May and you can invest now. To find out more about Kethian, listen to his music and invest, please visit https://jeeni.com/showcase/keithian/

10
Jun

Mel's bedtime story

Once upon a time, I created a platform called jeeni.com which is where independent artists perform their music in front of new fans, and get rewarded for their efforts. On a Saturday night we ran a live global music festival featuring 18 acts from both sides of the Atlantic. The oldest performer was over 70, the youngest was under 10. They were brilliant, each in their own way. We broadcast over social media and websites. There were no adverts, there were no fakes, there was no hype. It didn't cost us a penny to run. Everyone had a ball. We are part of a revolutionary process that is killing a corrupt and rotting music industry which has held both audience and performer to ransom since the 1890s. So if you will indulge me, I'd like to tell you how, and why ... I'm an old hoarder, I hoard old music recordings, and when I say old I mean really old. Upstairs, in what was once a studio but has turned into an Irish Setter leisure lounge, there are several hundred wax cylinders from the 1890s. Each cylinder is a unique recording from an age before duplication was possible. If Miss Florrie Forde wanted to sell a hundred copies of Hold Your Hand Out You Naughty Boy to her adoring public, then she had to keep lubricated and trill the bloody thing into a brass horn a hundred times and record it onto wax in real time. But to me the beauty of these cylinders is not that each one is a unique recording, but that each one is mercifully short, rotating at 120 revolutions a minute and lasting a meagre two minutes, because that's all a wax cylinder can hold. And so the two minute pop single was born. At the start of the twentieth century discs replaced cylinders, but not a lot changed. I have another room full of shellac discs that spin at 78 revolutions a minute. When it came to pop singles from artists bringing joy to the world throughout the first half of the twentieth century, they had just under three minutes to do it in. And if they were any good, just under three minutes was plenty. I feel personally to blame for what happened next, because in the hour of my birth in 1948, the microgroove vinyl disc hit the market, spinning at what my Irish chums call dirty tree and a turd revolutions per minute. I have an entire wall of vinyl albums, with their glorious covers and sleeve notes. And yes, they are arranged in alphabetical order by artist and date-order of release. Their storage capacity is approximately twenty-five minutes a side, which is usually twenty-two minutes too long. And on the opposite wall is where all my CDs sulk, each one capable of storing seventy-four minutes of audio, and not one of them played since the turn of this century. Why? Because a hacker called SoloH went and ripped the source code of something called the Fraunhofer MP3 encoder and spread it all over the internet for free. Thanks to SoloH, I can not only digitise my entire collection of recorded music without any restrictions on playing time, I can access the entire library of everything that has ever been recorded, for ever. My phone weighs exactly the same as my 78rpm copy of Little Richard's single Tutti Frutti, which runs for two minutes 28 seconds of total perfection. My phone holds 21,417 tracks in MP3 format, some of them complete symphonies, which are pretty good, some of them prog-rock drum solos, as used by Viet Cong torturers to break the spirit of the enemy. My desktop hard drive and cloud-accounts contain too many tracks to keep track of. I declare that my motivation for amassing this ludicrous collection of music was that one day it would bring me comfort in my old age, when my body and brain become enfeebled and I feel the need to keep hold of past pleasures while dying. As it turns out, I started playing my collection early, during lockdown, and wished I was dead by the end of day three. The singles were great, but the albums were mostly insufferable. Which is when I realised that the music album is stone dead, and the nightmare of a lifetime of audio padding is finally over. Then the real truth hit me. The recorded music industry is dead too. Thanks to COVID19 there has been an explosion of new creativity. Everyone is now a record producer, anyone can run a broadcast music channel, and that's exactly what everyone and anyone seems to be doing, including me. The spongers and leeches and shysters have been exposed as completely unnecessary, as have most of the agents, publicists and managers. They are no longer able to milk performers in our new world of social distancing, because they have lost their power. It's the remote audience that now has the power, and this audience wants instant gratification, not a load of overhyped, overwrought, overlong, flimflam. Jeeni.com is my final project in a very long career. I'm giving my artists three minutes per track to nail it, because that's what my old hoard tells me is right. And I hope you agree that in order to shine, three minutes is all that anyone should ever need.

Jeeni Blog