CR research on music streaming services

Apple Music was the second largest streaming service in 2019

New research published by Counterpoint Research shows that the number of new subscribers to the streaming of music grew 32% in 2019 – reaching about 358 million of signatures.

As we can imagine, the Spotify continues to be the segment leader, accounting for approximately 31% of the revenue in this market and 35% of total subscriptions. The Apple Music appears shortly thereafter, with 24% of general revenue and 19% of the number of subscribers.

CR research on music streaming services

According to the survey, the Apple subscriber base grew 36% compared to the previous year. This number was not higher, according to CR, Apple does not have a “two-step approach” to attract consumers – such as Spotify, which has the free version (with display of advertisements) to encourage users to pay for service.

With regard to total revenue, the firm explains that more than 80% of revenue comes from subscriptions, while the rest comes from advertisements and partnerships with brands and other companies. In addition, CR believes that subscriptions will grow more than 25% this year and may exceed 450 million.

The forecast is positive even with the pandemic of the Coronavirus (COVID-19). According to analyst Abhilash Kumar, the fact that people are at home will increase the number of subscriptions, but not necessarily the consumption of music, due to a “shift” in the focus of consumers towards radio and TV.

We hope that the OTT sector will increase, as people stay at home actively looking for news. During this pandemic, consumption of audio OTT went from streaming music to the radio. People in highly affected areas are concerned about the outbreak and are therefore attuned to news on TV and radio. The attraction of news channels and podcasts has increased, while music streaming has fallen.

Last June, Apple Music had 60 million subscribers and probably that number is much higher now – however, since then, the company has not updated the information.

via Patently Apple