Music streaming: Key market research findings
- The Americas to dominate the market geographically
- Increasing popularity of cloud-based streaming services
- Key vendors – Apple, Deezer, Google, iHeartMedia, Pandora, and Spotify
Technavio’s market research analysts predict the global music streaming market to grow at a CAGR of more than 13% between 2016 and 2020. Growth in this market is spurred by the rising usage of smart devices such as smartphones and tablets. Users mostly access music on their personal devices while traveling. The growing penetration of smart devices is triggering a sizeable growth in online music streaming rates. In 2015, the Americas accounted for around 61% of the overall market share to dominate the global music streaming market. The availability of superior music storage and streaming services with applications like Pandora, Beats, and Spotify in the region will contribute to the growth of the music streaming market in the Americas during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Cloud-based music streaming services are gaining a lot of traction in the market currently. Users are transitioning from iPods and music systems to cloud-based music, which also allows them to store, stream, download, and share content. This recent shift is prompting streaming service providers to adopt cloud computing technology as it provides legal access to online music, even from remote servers, irrespective of the device used. Companies such as Amazon, Apple, and Google are dependent on the cloud for features including storage and act as a remote locker for downloaded tracks,” says Ujjwal P. Doshi, Lead Analyst, Media & Entertainment, Technavio Research.
The number of people availing music streaming subscriptions in the market is currently witnessing an upsurge. Music streaming applications are providing social media integration services that allow users to personalize preferences and content. For instance, Spotify, Soundcloud, and Wynk are integrated with Facebook to allow easy sharing of music and playlists with friends. Such an integration with social media gives users access to a better music selection and is triggering an increase in music streaming subscriptions around the globe.
The prominent players in the global music streaming market include Apple, Deezer, Google, iHeartMedia, Pandora, and Spotify. This market is dominated by a few vendors who compete on the basis of online and offline streaming, song collection portfolio, and subscription fee. To gain a competitive edge over their peers, several vendors are focusing on developing new technologies. The level of competition in the market is expected to intensify during the forecast period with the increase in product extensions. Vendors are also expected to grow inorganically with the entry of new players in the market. Moreover, several vendors are resorting to mergers and acquisitions and strategic alliances to expand their geographic presence in the market.
A more detailed analysis is available in the Technavio report, Global Music Streaming Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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