Music Streaming Market Analysis

Platform Segment Analysis

The music streaming market is witnessing the strong dominance of the app sub-segment based on platform, capturing the largest revenue share of 89.5% during the forecast period. The booming adoption of smartphones and the convenience enabled by the mobile-first platforms are the key factors behind this dominance.  In June 2022, Spotify announced its strong evolution from just a music-streaming service into a broad audio and creator platform, influenced by ubiquity, personalization, and a strong freemium model. In this investor day, executives emphasized expanding content verticals such as podcasts, video, Live, and now audiobooks within a unified, personalized user experience that fuels massive discovery and audience growth.  Furthermore, the company reinforced its long-term vision to empower over 50 million creators to reach more than a billion users through the Spotify machine, a platform of integrated tools.

Service Type Segment Analysis

By the conclusion of 2035, the subscription-based subtype based on service type is expected to attain a significant revenue share in the music streaming market. The increasing consumer demand for high quality listening experience, wherein the platforms can monetize more effectively when compared to ad-supported models, is propelling this growth. As per an article published by UNESCO in December 2022, the music streaming sector has grown at an extensive rate in the 21^st century, owing to the emergence of digital platforms that are offering vast catalogues. The report also highlighted that by the end of 2021, the subscribers were 523 million, and streaming represented 65% of global recorded music revenues, which reflects its dominance in the industrial growth. Its expansion accelerated during the COVID-19 pandemic, as restrictions on live performances pushed audiences toward digital cultural consumption, hence denoting a wider segment scope.

Content Type Segment Analysis

In terms of content type audio streaming segment is expected to garner a lucrative share in the music streaming market by the end of the forecast duration.  This leading share is effectively propelled by its integration into daily life through smartphones, connected cars, and smart speakers. On the other hand, its utility for background listening during activities such as commuting or work makes it indispensable. In addition, the continuous improvements in terms of audio recommendations and personalization are readily enhancing the user engagement in this sector. Also, the ever-increasing availability of exclusive audio content along with artist releases is amplifying the market outlook, wherein streaming continues to be dominant in the digital music ecosystem.

Our in-depth analysis of the music streaming market includes the following segments: