The new crown epidemic has caused many people to stay at home to work or study, and it has also increased consumers’ demand for digital entertainment, which is of course indispensable to listening to music. According to the “Annual Streaming Music Subscriber Market Share Report” released by market research firm MIDiA Research, the global streaming music subscriber base continues to grow. As of the end of the second quarter of 2021, there were 523.9 million subscribers, an increase of 109.5 million subscribers from a year ago. , an increase of 26.4% year-on-year.
Spotify’s market share continues to erode
As in the previous year, Spotify remains the digital service provider (DSP) with the highest market share at 31%, up from 33% in Q2 2020 and Q2 2019’s 33%. 34% has declined. However, Spotify is still far ahead of No. 2 Apple Music with a 15% market share.
The report argues that while Spotify added more users than any other DSP in the 12 months leading up to the second quarter of 2021, reflecting that Spotify should not lose its market leadership anytime soon, its market share has been eroded. It is stable and continuous.
In terms of growth rate, Amazon Music’s 25% growth rate once again surpassed Spotify’s 20% growth rate, but the most prominent performer is YouTube Music, which has the highest growth rate for the second consecutive year and the second highest growth rate in 2021. It was up more than 50% in the 12 months leading up to the quarter.
YouTube Music was the only Western DSP to increase global market share over the past quarter. The report argues that YouTube Music resonates among Gen Z and younger Millennials, a wake-up call to Spotify, whose core millennial audience is now aging.
The largest number of user growth came from emerging markets. Tencent Music Entertainment (TME) and NetEase Cloud Music added a combined 35.7 million users in the 12 months to the second quarter of 2021, accounting for 18% of the global market share. Russia’s Yandex was another winner, doubling its user base to 2% of the global market share. Yandex, TME and NetEase together account for 20% of the user market share, but they drove 37% of user growth in the 12 months leading up to the second quarter of 2021.
The report notes that the surge in non-DSP streaming in 2021 means that the streaming market is no longer dependent on revenue contributions from mature Western user markets (and indeed from emerging markets that dilute ARPU). They expect non-DSP streaming revenue to contribute a few 25% to 33.3% of streaming revenue growth in 2021, and its revenue is expected to deliver strong growth even if streaming subscriber growth slows.