Lately, music streaming services have been taking off. Even though Jay-Z’s Tidal brand struggles to find an audiences, others like Spotify and Pandora continue to do well — and with Apple getting involved with its own music brand, it isn’t likely to slow down any time soon, if at all.
So what is it about the streaming music that’s so popular Felix Richter, media relations manager for Statista, recently broke down some new findings that indicate just why everyone’s hopping onboard the stream train.
“Besides vinyl, which continues to do well in a niche of its own, streaming is the only segment of the music market that is not shrinking right now,” he explained. “in fact, worldwide streaming revenues increased by almost 40 percent last year as the same number of subscribers grew from 28 million in 2013 to 41 million by the end of last year.
“According to IFP, ad-supported and subscription-based streaming accounted for 32 percent of digital music revenue in 2014, up from just nine percent in 2008”
He also addressed Apple’s recent introduction of its forthcoming Music service, which will launch later this month. “The decision to join the subscription-streaming market is probably less about getting a piece of the $2 to $3 billion streaming market and more about tying customers to its own devices,” he said. “If streaming is what people want and Apple can deliver a compelling service that works seamlessly across all of its devices, it might help Apple not only to protect its core hardware business, but to grow it.”
The chart above, supplied by Statista, shows just how much streaming has grown. Even though permanent downloads have shrunken in percentage over the years (from 63 percent to 52 percent), the pie is much bigger, going from $4 billion to $6.9 billion in the same time frame. In addition, subscription streaming has seen tremendous growth, from six percent to 23 percent, and ad-supported streaming is on the rise as well.
One thing’s for sure — with Apple in the picture, music streaming is going to get way more interesting. Let’s see how many consumers hop on board.