Purchasing and downloading music is no longer as popular or prevalent as it used to be. In today’s fast-paced, tech-driven world, consumers need on-the-go options for listening to music, anywhere and at any time. The demand for convenience and affordability, combined with high-speed internet and the emergence of cloud technology, have led to the rise of music streaming service providers. There are many benefits to music streaming, including continuous, ad-free listening, customization, and affordability. Users can access these services either for free or for a small fee, and have the ability to select songs, create playlists, and even get recommendations for songs they might enjoy based on their listening habits. The global music streaming market, which was valued at $3.3 billion in 2015, will reach $6.22 billion by 2020, growing at a CAGR of 13.3%.
While there is concern over the fact that music streaming can negatively impact artists, it does have a very important benefit: reduction in piracy. Before streaming, the easiest way to obtain free music was through illegal downloading or mp3 conversion sites. Streaming services essentially eliminate the need for pirating with such low fees and massive music libraries.
Key vendors in the global music streaming market
Apple
Apple Music is a music-streaming service, developed by Apple Inc. Users select music to stream to their device on-demand, or they can listen to existing, curated playlists. The service also includes the Internet radio station Beats 1, that broadcasts live to over 100 countries 24 hours a day, and the blog platform Connect, that allows artists to share their posts, photos, videos, and tracks with subscribers. Apple Music provides music recommendations based on a user’s taste, and the iOS application is integrated with Siri voice commands.
Deezer
Deezer is a web-based music streaming service. It allows users to listen to music content from record labels including EMI, Sony, Universal Music Group, and Warner Music Group on various devices online or offline. Created in Paris, France, Deezer currently has 40 million licensed tracks in its library, over 30,000 radio channels, 16 million monthly active users, and 5 million paid subscribers as of 6 November 2013. The service is available for Web, Android, Kindle Fire HDX, OS X, BlackBerry, iOS, Windows Phone and Symbian.
Google Play Music is a music streaming service and online music locker operated by Google. An “All Access” subscription, sold in combination with YouTube Red for US$9.99 per month, entitles users to on-demand streaming of any song in the Google Play Music catalogue for their geographical region and the ability to create custom radio stations. In addition to offering music streaming for Internet-connected devices, the Google Play Music mobile app allows music to be stored and listened to offline.
iHeartMedia
iHeartMedia, Inc. is an American mass media company headquartered in San Antonio, Texas. iHeartMedia, Inc. specializes in radio broadcasting through division iHeartMedia (formerly Clear Channel Media and Entertainment, Clear Channel Radio, et al.) and subsidiary iHeartMedia and Entertainment, Inc. (formerly Clear Channel Broadcasting, Inc.); the company owns more than 850 full-power AM and FM radio stations in the U.S., making it the nation’s largest owner of radio stations. Additionally, the company leases two channels on Sirius XM Satellite Radio, and has expanded its online presence through the iHeartRadio platform.
Pandora
Pandora Internet Radio (also known as Pandora Radio or simply Pandora) is a music streaming and automated music recommendation service powered by the Music Genome Project. The service, operated by Pandora Media, Inc., is available only in Australia, New Zealand, and the United States. The service plays musical selections of a certain genre based on the user’s artist selection. The service can be accessed either through a web browser or by downloading and installing application software on the user’s device such as a personal computer or mobile phone.
Spotify
Spotify is a Swedish commercial music streaming, podcast, and video service that provides digital rights management–protected content from record labels and media companies. It is available in most of the Americas, Western Europe, and Oceania. Music can be browsed or searched by artist, album, genre, playlist, or record label. Spotify operates under a freemium business model, with two music streaming tiers: Spotify Free and Spotify Premium.
Other prominent vendors
CBS
In 2007, CBS Interactive acquired Last.fm, a music website founded in the United Kingdom in 2002. Using a music recommender system called “Audioscrobbler”, Last.fm builds a detailed profile of each user’s musical taste by recording details of the tracks the user listens to, either from Internet radio stations, or the user’s computer or many portable music devices. This information is transferred (“scrobbled”) to Last.fm’s database either via the music player itself (Spotify, Clementine, Amarok, MusicBee) or via a plugin installed into the user’s music player.
Gaana.com
Gaana.com is a commercial music streaming service providing free and licensed music. It was launched in April 2010 by Times Internet and provides both Indian and international music content. The entire Indian music catalog is available to users worldwide, but only users in India have access to international music. Gaana.com features music from 21 languages including the major languages such as Hindi, English, Bengali, Marathi, Punjabi, Tamil, Telugu, Malayalam and other Indian regional languages.
Guvera
Guvera is an online music streaming service founded in 2008 in Australia. Guvera is available on web browsers, iOS, Android and the Windows Phone. Guvera has agreements with the music labels in the regions where the product is available, which allows for legal free music streams.
Line
Line Music is a subscription-based music streaming service by Line Corporation that combines existing Line Messenger app with the entertainment system that users not only can stream the music on-demand, but users can share the music directly to Line messenger.
Mixcloud
Mixcloud is a British online music streaming service that allows for the listening and distribution of radio shows, DJ mixes and podcasts, which are crowdsourced by its registered users. Mixcloud allows all users to browse and stream audio content uploaded on its site. Registered users can upload content such as radio shows, DJ mixes, and podcasts, as well as promote and distribute their content through Mixcloud’s own social networking widget
Rhapsody
Rhapsody is an online music store subscription service based in Seattle, Washington. On April 6, 2010, Rhapsody relaunched as a standalone company, separate from former parent RealNetworks. Downloaded files come with restrictions on their use, enforced by Helix, Rhapsody’s version of digital rights management enforced on AAC+ or WMA files.
Saavn
Saavn, LLC is an American digital distributor of English, Bollywood and regional Indian music in over 200 countries. Since it was founded in 2007, the company has acquired rights to over 7 million music tracks. Saavn’s signature products are Saavn.com, Saavn Pro, Saavn Music for iPhone, Saavn Music for Android, Saavn music and radio for Windows Phone and PC and Saavn Radio. Saavn offers free music search and streaming supported by display advertisements.
Soundcloud
SoundCloud is a global online audio distribution platform based in Berlin, Germany, that enables its users to upload, record, promote, and share their originally-created sounds. Among SoundCloud’s key features is the ability to allow artists to upload their music with a distinctive URL.
