A music subscription service is a type of streaming media service that mainly focuses on music, and sometimes other forms of digital audio content such as podcasts. These services are usually BASED ON subscription that allows users to stream digital copyright-restricted songs on-demand from a centralized library. Some services may offer free tiers with limitations, such as advertising and limits on use. They incorporate a recommendation engine to help users discover new songs they may enjoy based on their browsing history and other factors, as well as the ability to create and share playlists with other users.
The Music Subscription Market showcased growth at a CAGR of 12.32% during 2018-2021. The market was valued at USD 28254.01 Million in 2021 which is expected to reach USD 73570.21 Million in 2028. The increasing internet connectivity across the globe is contributing to the increasing consumer interest in taking the music subscription to enjoy uninterrupted ad-free music.
The Music Subscription Market is expected to grow in the forecast period and register a market value of USD 73570.21 Million in 2028 at a CAGR of 14.94% during the forecast period. The increase in internet penetration and the Increasing interest of big conglomerates are major driving factors that are accelerating the overall market growth of the Music Subscription Market.
The Music Subscription Market is a rapidly growing industry that provides users with access to music through various digital platforms, including streaming services, downloads, and personalized playlists. This market is being driven by the increasing availability of high-speed internet and mobile devices, which has made it easier for consumers to access music content from anywhere at any time.
The increasing number of smart devices such as smartphones, tablets, smart speakers, and wearable technology has had a significant impact on the Music Subscription Market. These devices have made it easier for consumers to access music content from anywhere at any time, leading to a surge in demand for online music subscription services.
One of the most significant impacts of smart devices on the Music Subscription Market is the shift toward mobile consumption. With more people accessing music on their smartphones and tablets, music streaming services have had to adapt their offerings to provide a seamless mobile experience. This has led to the development of mobile apps that allow users to stream music, create playlists, and discover new music on the go.
Another impact of smart devices on the Music Subscription Market is the rise of smart speakers such as Amazon Echo and Google Home. These devices are designed to provide a hands-free experience, allowing users to control their music with voice commands. Music streaming services have had to adapt their offerings to integrate with these devices, providing users with a seamless listening experience across all their devices.
The high usage of the free version of music streaming services has impacted the revenue of these services. As most users opt for the free version, the revenue generated through advertising is often insufficient to cover the costs of licensing music content and maintaining the service.
Moreover, the high usage of the free version of music streaming services has led to a perception that music should be free. This has made it difficult for music streaming services to convince users to pay for a subscription, as many users feel that they can access music content for free elsewhere.
In order to address these challenges, many music streaming services have introduced a range of incentives to encourage users to upgrade to a paid subscription. These incentives include ad-free listening, higher-quality audio, exclusive content, and access to additional features. By offering these incentives, music streaming services hope to increase the conversion rate from free users to paid subscribers and generate more revenue to sustain their operations.
The On-Demand service accounts for USD 18023.67 Million in 2021.
The users that prefer on-demand service music over live streaming are driving the market expansion because of the different types of membership that are offered by the companies such as Spotify, Amazon Prime, etc these services have differentiated themselves by offering unique features such as personalized playlists, algorithm-driven recommendations, and exclusive content from artists.
Overall, the Music Subscription Market is a dynamic and rapidly evolving industry that offers both opportunities and challenges for companies operating within it. As technology continues to advance and consumer preferences shift, companies must remain agile and adapt to stay relevant in this highly competitive landscape.
According to Azoth Analytics Estimates, the Americas accounts for the largest revenue share in 2022. The increasing internet connectivity worldwide is among the key drivers of the market along with the increasing demand for personalized playlists, which are expected to drive the Music Subscription Market over the forecast period.
Also, improvements in the standard of living in developing countries as users make their playlists according to their frame of mind, owing to increasing disposable income and rising tourism are the major factors supplementing the growth of the Americas Music Subscription Market.
The music Subscription Market is fragmented with the top 7 companies accounting for a significant revenue share in the year 2022. Leading companies and brands in the market are executing different strategies and partnerships to strengthen their foothold and increase their competitiveness and product offerings in the market.
Spotify, Apple Inc., Amazon.com Inc., Alphabet Inc., Tencent Music Entertainment Group, Deezer S.A., Sirius XM Holdings Inc.
Leading companies in the Music Subscription Market include:
• December 2022: NetEase Cloud Music has announced that it has entered into a licensing agreement for digital music distribution with B'in Music International Co., Ltd. ("B'in Music"), a leading C-pop music production company, granting NetEase Cloud Music the right to distribute B'in Music's music catalog, including one of the most influential C-pop bands Mayday.
• April 2023: – Sirius XM Holdings Inc. has announced that it has appointed Thomas D. Barry, who currently serves as Senior Vice President and Controller, as the Company's next Chief Financial Officer. Effective April 28th, Mr. Barry will succeed Sean Sullivan, who is stepping down from the role of CFO to pursue another opportunity at a publicly traded company outside the industry.
• On Demand
By End Use
• Middle East & Africa
1. What is the expected market value of the Music Subscription Market in 2028?
Ans: Global online music subscription is expected to be valued at USD 73570.21 Million in 2028.
2. At what growth rate is Music Subscription Market expected to grow in the forecast period?
Ans: During 2023-2028, Music Subscription Market is expected to grow at a CAGR of 14.94%.
3. Which Region dominates the Music Subscription Market?
Ans: Americas contributes the largest revenue share in the Music Subscription Market and is expected to continue in the forecast period as well.
4. Which are the leading companies in the Music Subscription Market?
Ans: The leading companies in Music Subscription Market are Spotify, Apple Inc., Deezer S.A., Alphabet Inc., Tencent Music Entertainment Group, Sirius XM Holdings Inc., Amazaon.com Inc., NetEase Inc., Block Inc., Xandrie S.A.
5. At what rate will China’s Music Subscription Market Grow?
Ans: During 2023-2028, China Music Subscription Market is expected to grow at a CAGR of 15.11%
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