When comparing the music consumption patterns of nowadays and those of only one decade ago, it is astonishing how deeply technological progress has influenced the (digital) music market. The disruptive impact of music streaming services like Spotify or Apple Music also broke down all frontiers and made access to all kinds of music easier than ever.
Music streaming services, e.g. Spotify, Deezer or Apple Music, offer unlimited access to their content libraries for a monthly subscription fee (the following data is relative only to paid subscriptions, without any advertising, ad-supported services, with forced commercial breaks between the tracks, internet radio or video streams – e.g. YouTube).
Worldwide data _ 2020
•Revenue in the Music Streaming segment amounts to US$ 12,435M in 2020.
•Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 5.7%, resulting in a market volume of US$ 15,520M by 2024.
•User penetration is 14.6% in 2020 and is expected to hit 16.5% by 2024.
•The average revenue per user (ARPU) currently amounts to US$ 11,45.
At a global level, most revenue is generated in the United States (US$4,522m in 2020).
Europe data _ 2020
•Revenue in the Music Streaming segment amounts to US$ 3,234M in 2020.
•Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 5.2%, resulting in a market volume of US$ 3,966M by 2024.
•User penetration is 19.8% in 2020 and is expected to hit 22.0% by 2024.
•The average revenue per user (ARPU) currently amounts to US$ 21,56.
Music streaming services are still growing, and they will continue to do so up to 2024.
But musicians still aren’t getting a fair share; they need to be paid more for their content.
These days, millions of listeners flock to streaming services to enjoy music. Americans listened to an average of 40 hours per week, and that number is rising.
Spotify, Apple Music, and other streaming services could raise rates considerably, so that artists can make more money from their art. No doubt this is a difficult proposition, because the streaming business model isn’t currently profitable.
Let’s launch a motion to get streaming services to take advantage of their place as the main playing field for musicians and songwriters and fund musicians, maybe by increasing their charges.
Most-streamed weekly tracks on Spotify worldwide as of January 9, 2020