Enterprise Information Digital
By Chris Cooke | Printed on Thursday 8 December 2022
Leisure business consultancy MIDiA has printed its annual report on music subscriber market shares, which estimates premium subscriber numbers for music streaming providers world wide.
In an accompanying weblog submit, MD Mark Mulligan writes: “Because the world edges in the direction of a recession, the music streaming market continues to face robust. Regardless of indications of slowdown in some markets, the worldwide music subscriber market stays buoyant. Progress, although, is uneven, with a lot of main streaming providers outpacing the remaining, particularly the Chinese language ones, which are actually setting the worldwide tempo”.
In the identical means that many residence leisure providers really benefited from the lockdowns throughout the COVID pandemic, the identical may very well be true of a recession, the place individuals spend much less cash on going out. “House leisure tends to carry out effectively throughout recessions”, Mulligan notes, “not least as a result of individuals are inclined to chop down on leisure spend (consuming out, bars, golf equipment, and so forth) and thus spend extra time at residence”.
“In earlier recessions lipstick gross sales boomed, reflecting their function as an reasonably priced luxurious that customers flip to after they can not afford the dearer luxuries”, he provides. “Music subscriptions have a superb probability of taking part in the same function within the coming recession”.
Stressing once more that, when it comes to premium progress, the Chinese language streaming providers are doing notably effectively, Mulligan writes: “The evolution of the worldwide music subscriber market is starting to fork between the main Western digital service suppliers and people in Asia – China particularly so. Practically all of the main DSPs proceed to expertise robust subscriber progress, however none extra so than Chinese language DSPs Tencent Music Leisure and NetEase Cloud Music”.
When it comes to general market share, Spotify continues to be by far the market chief, though – as has been the development in recent times – that lead is slowly declining. MIDiA reckons that its market share within the second quarter of 2022 was 30.5%, down from round 31% in 2021. Although a variety of the present decline in Spotify’s dominance is due to progress within the Chinese language market, the place it doesn’t function.
That progress in China additionally implies that the assorted providers run there by Tencent collectively are actually the third largest participant when it comes to market share. So, after Spotify, it goes Apple Music (13.7%), Tencent (13.4%), Amazon Music (13.3%) and YouTube Music (8.9%).
You possibly can purchase the brand new MIDiA report right here and learn Mulligan’s weblog submit right here.
