Music now has over 616 million paid streaming subscribers worldwide
MBW’s Stat Of The Week is a series in which we highlight a single data point that deserves the attention of the global music industry. Stat of the week is powered by Cinq music groupa technology-focused record label, distribution and rights management company.
There was 616.2 million Subscribers to music streaming services at the end of the first half of 2022, according to new estimates from Midia Research.
That was over 17.6% – or from 92.3 million – on the 523.9 million Subscribers worldwide that Midia counted in the same half of 2021 (see chart below).
And although this growth range compared to the previous year is not reached (+92.3 million) slowed compared to the same increase in the previous year (H1 2020 to H1 2021, +109.5m), it may not have slowed quite as much as many feared…especially given the broader macroeconomic pressures this year.
According to Midia, one reason for this is China: In the fourth quarter of 2021, the research company estimates, Tencent Music Entertainment (TME) overtook Amazon Music to become the third largest DSP in the world.
In the second quarter of 2022, says Midia, TME had 82.7 million Subscribers who a 13.4% world market share.
Midia, in his new Music subscriber market shares reportnotes that Total additions to net music subscribers in the first six months from 2022 (+42.1 million) were down on that +53.8 million in the same period last year (ie the first six months of 2021).
Midia says this slowdown is “indicative of the slowdown in the global economy,” but also notes it More music subscribers were added worldwide in 2021 than in 2020.
Prior to the release (on Thursday 7th December) of Midia’s latest estimate, the previous figure available for global music subscriptions came from the global recorded music organization IFPI in its Global Music Report March.
IFPI reported that this is the case 523 million Paid subscription account users through the end of 2021.
Other trends highlighted by Midia for the first half of 2022 were that Spotify, wwith what Midia values 187.8 million subscribers in Q2 22, remained by far the largest DSP, but the “its market share has steadily declined since Q4 20.
Midia adds that SPOT’s global share of music streaming subscriptions in Q2 2022 (30.5%) was from a high from below 33.2% in the second quarter of 2018.
Spotify confirmed at the end of the second quarter that it had added 6 million net premium subscribers to its user base this quarter, bringing the total number of global subscribers to up to 188 million (as of the end of June). Total paid subscribers to SPOT worldwide reached 195 million at the end of the third quarter (the three months ended September).
Among Spotify’s competitors in the music streaming market, Midia estimates Amazon Music as the fourth largest DSP globally with 82.2 million subscribers, while YouTube Music is estimated as the fifth largest with 55.1 million subscribers.
(YouTube announced last month that it had surpassed the milestone of 80 million paid YouTube Music and Premium subscribers worldwide).
For Apple Music, Midia says the service “continues its long-term trend of underperforming the market,” with an estimated 84.7 million subscribers capturing a 13.8% market share, up 1.2% from Q2’21 % has decreased.
Midia argues that Spotify’s decline in market share “has a lot to do with the growth of the Chinese market (which Spotify doesn’t operate in)”..
“The global music subscription market is nearing an inflection point, with slowdowns in mature Western markets offset by more dynamic growth in other regions.”
Mark Mulligan, Midia
“The global music subscription market is nearing an inflection point, with slowdown in mature Western markets offset by more dynamic growth in other regions,” writes Midia’s Mark Mulligan in a blog post.
“It is realistic to assume that the global recession and the organic maturation of the global subscriber market will result in some deceleration in growth in 2023, even if the sector otherwise remains resilient.”
He added: “Slowing growth should be the catalyst for what needs to come next, particularly in developed markets: unlocking pockets of growth through differentiation.
“Western DSPs have managed to grow with largely undifferentiated product offerings. Music rights owners should explore creative ways to provide their DSP partners with differentiated content so they can super serve specific consumer segments and thereby unlock additional growth within them.”
Cinq Music Group’s repertoire has won Grammy Awards, dozens of Gold and Platinum RIAA certifications, and numerous #1 chart positions on a variety of Billboard charts. His repertoire includes heavyweights like Bad Bunny, Janet Jackson, Daddy Yankee, TI, Sean Kingston, Anuel and hundreds more.music business worldwide
https://www.musicbusinessworldwide.com/music-now-has-over-616-million-paying-streaming-subscribers-globally/ Music now has over 616 million paid streaming subscribers worldwide