Global online music streaming subscriptions witnessed 32 per cent jump year-on-year (YoY), reaching 358 million subscriptions in 2019, according to a new report.
Spotify topped with 31 per cent share of the total revenue and a 35 per cent share of the total paid subscriptions.
Apple Music followed with 24 per cent share of total revenues in the industry and 19 per cent share of the total paid subscriptions, according to the report from Counterpoint Research.
At third place, Amazon Music subscriptions reached 15 per cent share in 2019, compared to 10 per cent in 2018.
“Paid subscriptions grew 32 per cent YoY compared to 23 per cent YoY growth of total monthly active users (MAUs). This suggests people are ready to pay for music streaming for a hassle-free experience,” Research Analyst Abhilash Kumar said in a statement.
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,” Kumar elaborated.
Due to Apple’s high focus on its services segment which includes Apple Music, its subscription base grew 36 per cent YoY in 2019.
Despite global players strongly pushing their music streaming platforms, regional players stand strong in their respective regions, said the report.
Gaana continues to be the top player in the Indian market while Yandex Music is leading in Russia.
Similarly, Anghami leads the Arab world and Tencent Music Group leads the China market with the help of its apps QQ Music, Kugou and Kuwo.
On the impact of the COVID-19 pandemic on the OTT industry, Kumar said: “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 online music streaming subscription is expected to grow more than 25 per cent (YoY) to exceed 450 million subscriptions by the end of 2020.
Meanwhile, more than 80 per cent 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, said the report.