Music Streaming Market Size and Trends

Global Music Streaming Market is estimated to be valued at USD 40.12 Bn in 2024 and is expected to reach USD 121.43 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.1% from 2024 to 2031.

Key Takeaways from the Music Streaming Market Report:

On-demand Streaming is expected to contribute the highest market share of 51.3% in 2024.
Audio is expected to contribute the highest market share of 49.3% in 2024.
Individual user segment is expected to contribute the highest market share of 56.3% in 2024.
North America is a leading market with a projected growth of 44.1% market share in 2024.

Market Overview:

The music streaming market is expected to witness significant growth during the forecast period. Factors such as growing adoption of smartphones and smart gadgets, increasing internet penetration across the globe, and changing consumer preference towards streaming music online rather than owning physical copies are expected to drive the growth of the market. Additionally, ongoing technological advancements in streaming services allowing users to access music on the go through their mobile apps along with feature enhancements like improved audio quality, personalized playlists, and offline listening are further propelling the demand for music streaming. Major players in the market are focusing on expanding their music libraries and constantly updating their catalogs to provide users with access to a large volume and variety of songs in different genres and languages.

Music Streaming Market Concentration By Players

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Key Developments:

In July 2024, UMG experienced a significant market valuation drop, losing over USD 16 billion due to weaker-than-expected streaming revenue growth, highlighting the industry's sensitivity to streaming performance metrics.
In January 2024, UMG removed its music from TikTok after failing to reach a licensing agreement, citing concerns over fair compensation for artists.
In September 2023, UMG and Deezer launched an artist-centric streaming model aimed at better remunerating artists and enhancing the value of music that fans engage with the most.
In October 2023, UMG partnered with BandLab Technologies to protect artists' rights and ensure the ethical use of Artificial Intelligence (AI) in music creation and distribution.

Top Strategies Followed by Music Streaming Market Players

Established Players: Established Players heavily invest in research and development to deliver innovative products and services. Industry leaders like Spotify, Apple Music and Amazon Music spend 5-10% of their annual revenues on R&D. Their extensive R&D efforts are focused on enhancing audio quality, developing personalized playlists and improving recommendation algorithms. Several strategic partnerships have also helped big players expand their ecosystems. For example, Spotify's partnership with Samsung allows music streaming directly from Galaxy devices.
Mid-level Players: Mid-sized players compete through cost-effective solutions. Services like Deezer and SoundCloud have simplified subscription plans starting at USD 5 per month to attract price-sensitive users. They also cut costs through collaborations. For instance, SoundCloud partners with labels and publishers to obtain licenses for a large catalog at low rates.
Small Players: Small players find success through niche specialization. Musical apps focused on specific genres or interests have built loyal fan bases. Platforms targeting indie artists provide exposure through specialized playlists and promotions. New entrants also leverage latest technologies like VR and AR through early adoption. Local partnerships help relatively unknown names gain traction in specific regions.

Emerging Startups - Music Streaming Industry Ecosystem

Innovation: Several startups are pioneering innovative technologies. Companies like Anthropic develop artificial intelligence solutions to automatically generate personalized playlists and concert recommendations. Others focus on immersive audio, with startups building VR/AR platforms to simulate live concerts.
Sustainable Solutions: Sustainability is a priority for many startups. Platforms like SoundBetter offer services for musicians to record and distribute songs with near-zero carbon footprint. EcoSongs helps independent artists promote environmental messages through music. Their initiatives set examples for larger entities to reduce industry's ecological impact.
Niche Specialization: Startups also meet niche demands through collaborations. Platforms partnering with local music schools and colleges give new talents exposure. Some work directly with independent labels to promote underground artists ignored by big players.