Music Streaming is a way of delivering sound, including music, that does not require downloading files from the Internet. Music streaming is music online playback service. Music data is stored on the server of the music platform. Most streaming music services have some underlying commonalities, such as allowing anyone to create customizable channels. These platforms are rapidly changing from streaming music services to overall streaming audio services. Streaming media has formed an integrated music communication system with other internet services such as social networks, allowing listeners to form a global real-time-wide linkage for the first time.
The global music streaming market anticipated to grow at a CAGR of 17.57% during the forecast period, 2020-2027. The significant factors are the rising trend for linking music apps with social media apps. Additionally, the surge in digitalization and growth in the adoption of digital music will spur the global music streaming market size in the upcoming periods. The swelling up-gradation in the technology is projected to raise the demand for music streaming among smartphone users.
The growing penetration of the Internet and swelling adoption of smartphones and laptops complemented by the increasing volume of the millennial population will boom the growth of the music streaming market in the forecast span. Moreover, the increased penetration of smartphones and tablets across the world will complement the global music streaming industry growth in the analysis timeframe. The growth in mobile advertising and the popularity of subscription services will bolster the robust growth in the global music streaming market in the estimated periods. Additionally, technological developments such as voice recognition technologies’ evolution to enhance consumer experience will influence the growth of the global music streaming market in the coming years. The streaming of songs through audio and video platforms across the globe will boost industry growth.
Digital music refers to music stored in a digital format and transmitted on the Internet. The development is mainly driven by the trend of the genuine nation and the awareness that users can pay for music content. The establishment of streaming music is still in its infancy, and users are still used to downloading music locally for listening. From the perspective of users’ use of digital music platforms, the sharing of music and personalized recommendation functions have improved. Simultaneously, with the popularization of streaming media, users’ behavior to download music will be further reduced, which helps stimulate users to continue to pay for music.
In the outbreak of COVID-19 pandemic, physical sales of music, which represent a quarter of recorded music revenues, are down by about one-third while digital sales have fallen around 11%. The growing consumption and spending habits have changed. While some consumers take on more subscription services at home, others have opted to subscribe under financial pressure. The services are offering a free-to-consumer, ad-funded model until the economy recovers.
By type of streaming, the global online music streaming market segregated into live streaming and on-demand streaming. The on-demand streaming segment estimated to witness the highest growth over the analysis timeframe due to the growing introduction of audio music streaming applications and offering advanced features with its subscription-based music streaming applications.
The live streaming will grow at a significant rate during the forecast period due to the introduction of the subscription-based music streaming option by music providers companies.
Based on the content type, the global music streaming market categorized into audio streaming and video streaming. The video streaming segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to the low cost associated with the advertisements showcased over free video music streaming applications.
The audio streaming segment is poised to witness significant growth over the forecast period. Due to the growing volume of audio music streaming service subscribers, the rising trend of listening to music has fueled the music enthusiasts’ ability to opt for music streaming services.
Based on the end-user, the global music streaming market classified into residential and commercial. The residential segment is expected to be the highest revenue share for music streaming during the forecast period. The segment’s growth is primarily attributed to the increasing consumer disposable income and swelling adoption of advanced consumer electronic devices, including smartphones and laptops.
By geography, the global music streaming market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to project considerable growth over 2020-2026. It is due to the availability of resources for offering advanced music streaming experience to the end-users, high adoption of digital music in the U.S., and the surge in disposable income of the end-users.
The Asia Pacific will capture a prominent share of the Music Streaming market by 2027. Due to the increasing adoption of free music streaming applications such as JOOX, Saavn, Gaana, etc., across various countries in the region.
Companies such as Alphabet Inc., Apple Inc., Comcast Corp., Deezer SA, IHEARTMEDIA, INC., Microsoft Corp., Samsung Electronics Co. Ltd., Sirius XM Holdings Inc., Sony Corp., Spotify Technology SA, Pandora, SoundCloud, JOOX, and Amazon Music are the key players in the global music streaming market.
By Type of Streaming
By Content Type