Online music streaming subscriptions witnessed a 32 percent growth last year, expected to grow even more in 2020, according to Counterpoint Research.
The rise is attributed to exclusive content like podcasts, promotional activities and bundle offers from telcos. By the end of 2020, paid subscriptions are estimated to grow more than 25 percent to surpass 450 million.
Research analyst Abhilash Kumar said people are “ready” to spend money for music streaming without the interruption of ads, like the data suggests. A total of 358 million subscriptions are estimated to grow more than 25 percent to surpass 450 million. He clarified by stating: “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.”
Talking about the platforms, the go to for the most of users is Spotify, with 31 percent of the total revenue accumulated and a 35 percent share of total paid subscriptions. Apple Music follows at second with a 24 percent share in total revenue and a 19 percent share of total paid subscription, along with a 36 percent year-on-year growth in 2019 thanks to its services segment. Amazon Music places third with a 15 percent share.