Market shares for music subscribers Q2 2021

MIDiA’s annual report on market shares for music subscribers is now available here (see below for more details on the report). Here are some of the key results.

The global base of music subscribers continues to grow strongly with 523.9 million music subscribers by the end of 2. quarter of 2021, which was an increase of 109.5 million (26.4%) from a year earlier. It was crucial that growth was faster than the year before. There is a difference in revenue and subscribers – with ARPU deflators, such as the rise in multi-user plans and the growth of new markets with lower consumption – but the growth in revenue-generating users represents the cornerstone of digital services streaming (DSP) market. So accelerating growth at this relatively late stage of streaming market development is clearly positive.

Spotify remains the DSP with the highest market share (31%), but this dropped from 33% in Q2 2020 and 34% in Q2 2019. With Apple Music as a distant second place with 15% market share, and Spotify added more subscribers in the 12 months up to Q2 2021 than any other single DSP, there is no risk of Spotify losing its leading position right now – but the erosion of their share is steady and sustained. Amazon Music once again outperformed Spotify in terms of growth (25% compared to 20%), but the notable success story among Western DSPs was YouTube Music, for the second year in a row. Google was once the laggard of the space, but the launch of YouTube Music has changed its fortunes and grown by more than 50% in the 12 months leading up to Q2 2021. YouTube Music was the only Western DSP to increase its global market share over of this period. YouTube Music is particularly resonant among Gen Z and younger Millennials, who should have alarm bells ringing for Spotify as their core base of 2010s Millennial subscribers in the West now begins to grow older.

But the biggest subscriber growth came from new markets. Together, Tencent Music Entertainment (TME) and NetEase Cloud Music added 35.7 million subscribers in the 12 months up to Q2 2021. Together, they accounted for 18% of global market share, despite being only available in China. Yandex, in Russia, was the second big winner, doubling its subscriber base to reach 2% of the global market share.

Together, Yandex, TME and NetEase account for 20% of subscribers’ market share, but they drive 37% of all subscriber growth in the 12 months up to Q2 2021.

The strong growth in subscribers has an extra significance into 2022. The increase in non-DSP streaming in 2021 means that the streaming market is no longer dependent on the revenue contribution from maturing western subscriber markets (nor ARPU-diluting emerging markets). With non-DSP streaming revenues appearing to have contributed between a quarter and a third of the increase in streaming revenue in 2021, streaming revenues appear to be strong growth as subscriber growth slows. This is what is called a diversified market.

A little more details about the subscriber market share report:

The report has 23 pages and 13 figures with subscriber numbers at country level, revenue and demographics according to DSP. The accompanying data set has quarterly subscriber figures and annual turnover figures from Q4 2015 to Q2 2016 by DSP by country, with 33 markets and 27 DSPs. The report and the dataset is available to MIDiA subscribers hereand can also be purchased individually via the same link.

Email stephen@midiaresearch.com for more details.

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