- Led by the Swedish music streaming service Spotify, the global online music streaming market rose 35 percent (year-on-year) in the first quarter of this year to reach 394 million subscriptions
Led by the Swedish music streaming service Spotify, the global online music streaming market rose 35 percent (year-on-year) in the first quarter of this year to reach 394 million subscriptions worldwide, a new study said Wednesday.
According to Counterpoint Report, Spotify led the charts with a market share of 30 percent in terms of revenue and 33 percent in terms of paying subscriptions.
Apple Music followed with a revenue share of 25 percent and a subscription share of 21 percent and Amazon Music subscriptions grew to capture the third spot by a strong 104 percent (YoY).
However, Tencent Music (with the aid of QQ Music, Kugou and Kuwo) emerged the winner with a stronghold in China with 657 million MAUs in terms of total monthly active users (MAUs).
“The rise in paying subscriptions (35% YoY) was again more than the 20% YoY growth in monthly active users (MAUs), suggesting that people from the free MAU universe are upgrading to become premium subscribers for an improved experience,” said Research Analyst Abhilash Kumar.
Strong performance in the Asia Pacific and Latin America drove the growth of Spotify.
It has made a big price cut in India, which Spotify recently entered, on its annual Rs 1,189 to Rs 699 plan.
It has come up with a new Spotify Kids app, in addition to podcasts and pet playlists.
“Apple Music has expanded to 52 new countries and offered six months of free subscriptions there. It also continually adds new features to its platform, as with the release of iOS 13.4.5, users can now share their music on Instagram and Facebook stories, thereby increasing social media engagements,” Kumar explained.
The reason for the spectacular growth of Amazon Music is that Amazon Music HD’s HD arm delivered 90 days of “free lossless music streaming in Q1 2020.”
The subscription race is heating up with each quarter that passes.
Although the outbreak of COVID-19 proved negative for most sectors, it improved the overall scenario for the music streaming market, the report said.
Discussing the Q1 effect of the COVID-19 pandemic on the OTT industry, Kumar said, “As we said in our release Q4 2019, the OTT industry was experiencing an upswing as people stayed home. The sound habits, however, have shifted from listening when driving to listening at home. Radio, news channels, and wellness- and meditation related podcasts have grown. On the device side, streaming time on smart audio devices and TV grew even as Android Auto and Car Play ‘s listening hours declined in the middle of less commute.