Music streaming worldwide - statistics & facts
Few other technological innovations have disrupted the global media and entertainment industry and altered music consumption habits as extensively as streaming. Over the past few years, the number of music streaming subscribers has soared at a rapid pace, and recent data suggests that more than 700 million people listen to their favorite artists or discover new ones via online streaming platforms. Global industry data showed that music streaming revenues have multiplied by roughly 15 times in the last decade, surpassing sales of digital downloads and all physical music formats by a landslide. Not only that, but streaming now also accounts for the lion’s share of total music revenues worldwide, highlighting that the future of the industry will likely unfold on-demand and online - and with the support of AI.
Music fans are streaming more music and other digital audio content than ever and judging by the most recent developments in other parts of the media and entertainment landscape, the streaming wave is unlikely to recede any time soon.
Spotify sets the tone
Consumers can choose from an ever-expanding catalog of free and paid music streaming services. While various smaller providers have amassed impressive user bases in their respective markets over the years, the global streaming landscape continues to be dominated by a handful of behemoths. Data showed that Spotify remains the most popular music streaming provider worldwide, accounting for over 30 percent of all streaming subscribers and outperforming its closest competitors, Apple Music, Amazon Music, and Tencent Music. According to the company’s latest filings, the number of Spotify premium subscribers reached more than 240 million users, and revenues from its paid and ad-supported streaming models also peaking. Spotify also owes its success to its usage of AI in optimizing the listening experience and in retaining customers on its platform. The Swedish music streaming giant developed multiple AI-powered features, such as “Discover Weekly” and other playlists full of AI-created recommendations, that help the users in the (re-)discovery of their old and new favorite music. We also owe the company’s most popular gimmick ”Spotify Wrapped” to AI. This annual musical retrospective is not only a fun feature for Spotify’s users, but also an effective marketing strategy for the brand that has also been copied by companies beyond the music streaming industry.Has music streaming reached its saturation point?
Streaming will undoubtedly remain the key driver of growth for the global music industry. Over the next few years, both new and established audio streaming services are expected to add millions of subscribers but considering that markets such as the United States have already reached a certain level of subscriber maturity, there will likely be some shifts in regional focus. This trend is already visible today, as most major players are vividly expanding operations in previously untapped regions with potential for subscriber and revenue growth. And even though the overall growth in music streaming revenue has slowed since the mid-2010s, the figure is still climbing at a double-digit rate each year.Music fans are streaming more music and other digital audio content than ever and judging by the most recent developments in other parts of the media and entertainment landscape, the streaming wave is unlikely to recede any time soon.
