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Streaming 2020: Spotify still #1, Apple loses market share, Amazon gains

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  • Streaming 2020: Spotify still #1, Apple loses market share, Amazon gains



    Music Subscriber Market Shares Q1 2020

    (...)

    Overall there were 400 million music subscribers in Q1 2020, up 30% from Q1 2019, with 93 million net new subscribers added. This compares to the 77 million added one year earlier.

    Spotify remains the standout leader in terms of subscribers with 32% market share. Spotify’s market share has remained between 32% and 34% every quarter since 2015. This is some achievement given how much more competitive the market has become in that time, and the stellar growth of Amazon. Spotify’s growth is both an extension of the wider market and a driver of it.

    Despite Apple Music’s strong showing in second with 18%, this market share is down from 21% in Q1 2019 and contrasts with Amazon Music which finished Q1 2020 with 14% share, up from 13% one year earlier. Apple Music is making ground in absolute terms, Amazon is making ground in both absolute and relative terms.

    Tencent Music Entertainment takes fourth spot with 11%, all the more impressive given that this number almost entirely refers to China and that it is accelerating growth, adding 14 million subscribers by Q2 2020 compared to 6 million on the year earlier.

    Google is fifth with a more modest 6% but this represents a turnaround, with YouTube Music finally making Google a genuine contender in the subscription space. In Q1 2018, Google’s market share was just 3%. Google is outperforming the overall market.

    What is particularly interesting about the state of the global market now compared to a couple of years ago is that we are starting to see some genuine segmentation taking place, which is a real achievement given that most of the services have to operate with the same catalogue and pricing:
    • YouTube Music is resonating with Gen Z and younger Millennials
    • Amazon Music is bringing older audiences to subscriptions
    • Spotify and Apple Music are the mainstream options
    • Deezer is enjoying success in emerging markets – Brazil especially – with pre-pay mobile bundles
    (...)

    https://musicindustryblog.wordpress....hares-q1-2020/



    2019 Year End Charts: The 20/20 Experience

  • #2
    Apple iTunes used to be the barometer of popular music sales. The company really dropped the ball with streaming.

    Comment


    • #3
      Originally posted by SpyVsSpy View Post
      Apple iTunes used to be the barometer of popular music sales. The company really dropped the ball with streaming.
      Did they though? iTunes was a special case as there was never a proper competition for it.

      In the case of Apple Music - it wasn't the first streaming service - others had a big headstart (Spotify especially), it basically relied on Apple's users and its eco-system for a rapid expansion at first and now that it seems to be over, the service is struggling to attract non Apple users, which is something they should've expected anyway.

      I don't know about other markets, but they didn't really do much promo when AM was made available here in Croatia. Basically a couple of music sites said - AM is here. And that was it. Their pricing is competitive at first glance, but Deezer offers promotional subscription on multiple mobile operators (it has a cheaper subscription on pre-paid and even comes for "free" in upper tier mobile plans). Google Play is always offering some kind of promotion. Spotify and TIDAL are not available here, so despite having only 2 competitors here, they're not even bothering to do any kind of promotion to establish themselves.

      It seems to me that they might be happy just having that stable base of Apple users.
      I have received many gifts from God,
      but this is the first time I have ever received a gift from a goddess
      .

      Don McLean on Madonna's version of American Pie

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      • #4
        I’m not sure Apple or their shareholders are ever happy if they not in a leading spot. Especially now that iTunes music sales are down. What you’ve described basically says that Apple is struggling to catch up in this category. Looks like their movie/TV streaming service isn’t doing well either but that another topic.
        Im a big Apple user here btw.

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        • #5
          I don't think they even bother branching out outside Apple eco system though (for now at least).

          In the Play Store their app is easily the worst rated one.

          Spotify / Deezer 4.5
          TIDAL / Play Music / Pandora 4.2
          Apple Music 3.8

          They're clearly not being bothered by a lot of usability problems based on the reviews. I can see a lot of people being very negative about the last few updates.
          I have received many gifts from God,
          but this is the first time I have ever received a gift from a goddess
          .

          Don McLean on Madonna's version of American Pie

          Comment


          • #6
            Spotify has just always been the most user-friendly, Apple Music was a complete no-go for me when they wiped out my iTunes library labels and artwork.

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            • #7
              Looks like investing in podcasts has turn out well for Spotify

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              • #8
                Looks like Spotify is working on some kind of video capability on their app. YouTube ought to be worried...

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                • #9
                  Great for Spotify - I've stayed loyal since I first started with streaming.

                  Trialled Apple Music - I liked that it was brighter in terms of appearance but otherwise, less friendly than Spotify.

                  Amazing that 400m worldwide have streaming accounts. Assuming one quarter of that are paid account users at $10 per month, that's $1 billion per month - it's just ginormous.

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                  • #10
                    I love Spotify. I've never tried another streaming service. Spotify has my heart and soul.
                    My Chart

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                    • #11
                      I hate streaming and especially Spotify for killing CD market.
                      My celebrity crushes : Monika Sedziuviene, Kristina Ivanova (YVA).
                      In my head I like to imagine LastDreamer in the land of Lithuania right now with a suitcase of simcards, a box of chocolates and a wedding ring. It would be a great base for an epic Eurovision fan fiction.

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                      • #12
                        Originally posted by stevyy View Post
                        I love Spotify. I've never tried another streaming service. Spotify has my heart and soul.
                        I have tried Amazon music and Apple play, it’s just not as good as Spotify.
                        nekoo.cz - follow me

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                        • #13
                          Originally posted by LastDreamer View Post
                          I hate streaming and especially Spotify for killing CD market.
                          But more artists can live off music today than in the 2000s, when the whole industry broke down ...
                          2019 Year End Charts: The 20/20 Experience

                          Comment


                          • #14
                            Originally posted by LOVE+FEAR View Post

                            But more artists can live off music today than in the 2000s, when the whole industry broke down ...
                            I would still say that streaming is not that significant for smaller acts... who rely on sales via their website.
                            My Chart

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                            • #15
                              Originally posted by stevyy View Post

                              I would still say that streaming is not that significant for smaller acts... who rely on sales via their website.
                              Absolutely and touring, but people discover them through YouTube, Spotify playlists, algorithmic playlists, recommendations from friends on streaming, etc.
                              2019 Year End Charts: The 20/20 Experience

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                              • #16
                                Yeah, Spotify is doing great. I am not even surprised. Their service is pretty good tho.
                                thesis writing help

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                                • #17
                                  Spotify always.

                                  ​​​​​​Although there's tons of albums and singles missing

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