Report predicts over 450 million music streaming subscriptions by end of 2020

This is according to a recent report published by Hong Kong company Counterpoint Research. The report also indicates that in 2019 music streaming subscriptions around the world grew by 32% year-on-year to reach 359 million subscribers.

Spotify led the pack with a 31% share of the music streaming sector’s total revenue as well as 35% of the total paying subscribers. Last year, the world’s biggest music streaming platform reported more than 124 million Premium subscribers and 271 million monthly active users globally, according to the company’s fourth quarter financials.

Apple Music is not far behind with a 24% share of total industry revenue and a 19% share of total paid subscriptions, which were up 36% year-on-year in 2019. Amazon Music claimed 15% of subscriptions last year, a 5% jump from 2018. YouTube Music now has a 6% market share.

Chinese giant Tencent Music boasts 11% of the global music streaming market share. The company runs music streaming services such as QQ Music, Kugou and Kuwo in China as well as Joox in a number of Asian markets like Malaysia, Thailand and Hong Kong, among others.

Tencent’s market share could potentially rise in the near future after the company recently announced that it was eyeing the music streaming market in Africa. Joox was launched as a pilot in South Africa in 2017.

“Music streaming platforms are following a two-step approach to gain subscribers, Counterpoint Research analyst Abhilash Kumar said. “First registering them to their platform as free users by means of excellent advertising campaigns and secondly pitching them with attractive offers to transfer them to become paying subscribers. Tech giants like Amazon, Apple and Google have started focusing on music streaming and have sufficient cash at their disposal to give stiff competition to Spotify.”

Meanwhile, a decline in music streaming amid the coronavirus (COVID-19) pandemic has contributed to Spotify’s rating downgrade from 'Strong Buy' to ‘Market Perform’ by US investment banking company Raymond James. The financial service indicated that widespread lockdowns, quarantines and closure of non-essential businesses were negatively impacting music streaming. Many listeners streamed music at the gym, in the car and at work, for instance.

In addition, Spotify’s streaming rates have decreased by double digits in the US. After a dramatic increase in the company’s share price from October ($113) to November ($155), the share price significantly dropped in mid-March. It is now at about $127 per share.