Music Subscription Market

Global Music Subscription Market Size (2024 to 2029)

The size of the global music subscription market is estimated to be worth USD 31.58 billion by 2029 from USD 14.48 billion in 2024, registering a CAGR of 16.88% during the forecast period.

The music industry has witnessed a paradigm shift in consumer behavior due to the growing adoption of digital streaming platforms. Music subscription services offer unlimited access to vast libraries of songs for a monthly fee and have become increasingly popular among consumers worldwide. The global music subscription market is anticipated to witness robust growth in the coming years owing to the growing popularity worldwide and rapid adoption of these services by consumers. Due to the intense competition, the major market participants have been continuously striving for innovation to introduce new features and engaging in partnerships to attract and retain subscribers.

Global Music Subscription Market Drivers:

The growing smartphone penetration and convenience of streaming on the go are majorly propelling the music subscription market worldwide. Consumers now have unparalleled access to music streaming services at their fingertips due to the increasing ubiquity of smartphones, which has revolutionized the way they consume music. The ease of accessing music libraries via smartphones has led to a notable shift in consumer behavior from purchasing individual songs or albums to subscribing to platforms and this trend is likely to accelerate during the forecast period and propel the global market growth. For instance, as per a report by the International Federation of the Phonographic Industry (IFPI), revenue from subscription streaming increased by 18.5% in 2020, beating physical sales and digital downloads combined. On the other hand, the major market participants have optimized their platforms for mobile use to offer intuitive mobile applications with user-friendly interfaces to provide a seamless streaming experience and gain subscription retention. For instance, in a study conducted by App Annie, it was revealed that mobile users spent an average of 4.2 hours per day on apps in 2020 and music streaming apps being among the top categories. Furthermore, the convenience of streaming music on the go has significantly contributed to the rise of music subscription services, and this trend is expected to fuel the market’s growth rate in the coming years due to the growing number of smartphone users worldwide.

Expansion into emerging markets and rapid adoption of subscription-based models are further promoting the growth rate of the global music subscription market.  The major market participants have considered entering the emerging markets as a strategic approach to tap new demographics and unlock substantial growth opportunities. Emerging markets such as India have been experiencing increasing affordability of smartphones and improving internet infrastructure, which is a lucrative opportunity for music subscription services. According to a Deloitte report, smartphone penetration is expected to reach 80% by 2025 in emerging markets such as India, Brazil, and Indonesia. The adoption of subscription-based models for music services is on the rise and has become a major revenue stream for service providers. The service providers of music subscriptions often offer freemium models to allow users to access limited features or content for free while encouraging them to upgrade to premium subscriptions for enhanced benefits. For instance, the conversion rate from free to paid subscribers reached 13.5% in 2020, as per the data of MIDiA research.

Factors such as access to vast music libraries with subscriptions, personalized playlists and recommendations, multi-device compatibility, and growing internet connectivity are driving the global market growth. The growing number of partnerships between service providers and telecom companies, integration with smart home devices, expansion into podcasts and audiobooks, offline listening capabilities and integration with social media applications are further favoring the growth of the global music subscription market.

Global Music Subscription Market Restraints:

High subscription fees are a major restraint to the global music subscription market. Limited availability in certain regions, piracy and illegal downloading are further impeding the global market growth. Competition from free ad-supported platforms, device compatibility issues and concerns over data privacy and security are showing negative impact on the growth of the global music subscription market.

REPORT COVERAGE:

This research report on the global music subscription market has been segmented and sub-segmented based on service type, platform, end-user and region.

Global Music Subscription Market – By Service Type:

• On-Demand
• Live

Based on service type, the on-demand segment dominated the music subscription market in 2023, holding 74.2% of the worldwide market share and the domination of the on-demand segment in the global market is estimated to continue throughout the forecast period. The growth of the on-demand segment is primarily attributed to the increasing demand from consumers for access to vast libraries of music content anytime, anywhere. On-demand service offers convenience, personalized playlists, offline listening, and exclusive content offerings, which is fueling the segmental expansion. Spotify is the leader in on-demand music streaming and has over 165 million premium subscribers. The United States is the largest market for on-demand music subscriptions and accounts for nearly 35% share of the worldwide market share.

The live segment is projected to register prominent growth during the forecast period. Factors such as the rising popularity of live-streaming concerts and an increasing number of collaborations between artists and streaming platforms to host exclusive live events, concerts, and virtual music festivals are propelling the expansion of the live segment in the global market.

Global Music Subscription Market – By Platform:

• Applications
• Web

Based on the platform, the application segment led the market and accounted for 81.9% of the global market share in 2023. The lead of the application segment in the global market is mostly likely to continue throughout the forecast period owing to the proliferation of smartphones and mobile devices that offer convenience and portability. The offline listening capabilities and push notifications for personalized recommendations that are possible via applications are further contributing to the expansion of the application segment in the global market. The growing consumer base for music streaming is supporting the growth rate of the application segment. For instance, leading music streaming apps such as Spotify, Apple Music and Amazon Music have a combined user base of over 600 million.

Global Music Subscription Market – By End User:

• Individual
• Commercial

Based on end-users, the individual segment dominated the market and held 88.4% of the global market share in 2023 and is estimated to grow at a CAGR of 18.6% during the forecast period. The growth of the individual segment is primarily driven by the increasing adoption of streaming services among consumers for personal entertainment. The growing willingness from consumers to pay the premium to offer an ad-free experience and gain access to paid features is contributing to the segmental expansion. For instance, Spotify has over 345 million active users, and 155 million are premium subscribers in the individual segment.

The commercial segment is predicted to register a healthy CAGR during the forecast period. The rising demand for licensed music for business establishments, such as restaurants, bars, and retail stores, is propelling the growth of the commercial segment in the global market.

Global Music Subscription Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

North America outperformed all the other regions and dominated the music subscription market worldwide market in 2023, with 40.7% of the global market share. The domination of North America is attributed to the high smartphone penetration, strong internet infrastructure, and the presence of major streaming platforms. The U.S. is expected to play the dominating role in the North American market during the forecast period. The rapid adoption of family plans and student discounts boosts subscriber numbers in the U.S., which is one of the key factors propelling the U.S. market growth. Service providers such as Spotify and Apple Music dominate the music subscription market in the North American region, with over 250 million subscribers combined.

Europe stood as the second largest regional segment in the global market in 2023 and held 28.4% of the worldwide market share in 2023. In Europe, streaming platforms such as Spotify and Deezer offer multilingual content to cater to diverse audiences, and these platforms have been trying to enter emerging markets like Eastern Europe to drive subscriber growth, which promotes European market growth. Factors such as increasing digitalization, strong regulatory support for copyright protection, and diverse music preferences are promoting the music subscription market in Europe. The UK is expected to hold the major share of the European market during the forecast period. The launch of exclusive content collaborations between European artists and streaming platforms is promoting the music subscription market growth in Europe. For instance, Spotify initiated a series called "Spotify Singles" featuring European artists.

The Asia-Pacific region is estimated to showcase the highest CAGR of 25.9% in the global market during the forecast period. The growth of the Asia-Pacific market is majorly driven by the rise of smartphone usage, increasing disposable incomes, and a growing music-streaming culture. The introduction of localized content and partnerships with regional artists to attract more subscribers, such as Spotify's collaboration with K-pop labels, is promoting regional market growth. China is expected to play a big role in the Asia-Pacific market during the forecast period and witness a CAGR of 26.1% during the forecast period.

Latin America is anticipated to account for a considerable share of the worldwide market during the forecast period. Factors such as growing internet penetration, increasing young demographic and rising popularity of regional music genres are driving the growth of the Latin American market. Brazil is leading the music subscription market in Latin America. The expansion of platforms into Spanish-speaking markets such as Mexico and Argentina and the launch of music-focused social media features by platforms like Instagram and TikTok to engage Latin American audiences are boosting the growth rate of the Latin American market.

The music subscription market in the Middle East and Africa is predicted to showcase a healthy CAGR during the forecast period. Regional platforms such as Anghami and Boomplay cater to local music preferences and languages. Factors such as improving internet infrastructure, increasing smartphone adoption, and rising urbanization rates are contributing to the MEA market growth.

KEY MARKET PLAYERS:

Companies that play a leading role in the global music subscription market include Spotify, Apple Music, Amazon Music, YouTube Music, Deezer, Tencent Music, Block Inc., Pandora, Tidal, Google Play Music, Anghami, SoundCloud Go, Xandrie S.A., QQ Music and NetEase Cloud Music.