London, 09 June 2014: Access to new music, anytime, anywhere is boosting the popularity of services like Rdio and Spotify and driving overall growth in the Global Music on Demand Market, according to TechNavio.
The independent tech-focused global research firm has released their market research report on the topic, which shows that the market is growing at a CAGR of 20.64 percent from 2013-2018.
Upsurge in Subscription Services
Subscription services are currently witnessing an increasing number of subscribers for digital music streaming services, thanks to a variety of choices for consumers and increased integration with social media.
“The integration of music streaming applications with social media platforms such as Facebook has increased music subscriptions significantly around the world,” says Faisal Ghaus, Vice President of TechNavio.
Additionally, the freemium business model is aimed at migrating free users to premium paid services while ensuring sustainability. Hence, the growing number of premium subscribers is helping the Global Music on Demand Market to gain momentum.
Strategic Acquisitions Helping Lead Vendors Maintain Market Presence
Major music recording firms such as Universal Music Group (UMG), Warner Music Group, and Sony Music Entertainment have undertaken some strategic mergers and acquisitions to revitalize their market presence in this segment.
Recently, UMG partnered with the social crowd-sourcing platform, Talenthouse, to create a variety of campaigns for its roster of chart-topping artists. The company has also partnered with Free All Music, a digital music download service that provides customers with free and legal downloads from UMG’s wide-ranging digital catalogue. This upsurge in market consolidation activities is increasing global music firms’ market presence and reach, and will have positive effects on the market size over the projected period, says Ghaus.
Key vendors include:
- Amazon.com Inc.
- Apple Inc.
- Google Inc.
- Microsoft Corp.
- Pandora Media Inc.
- Rdio Inc.
- Sony Corp.
- Spotify AB
To determine these market scenarios over the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on the Global Music on Demand Market please send an e-mail to media@TechNavio.com.
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