Advancements in technology over the past two decades have fostered growth for new industries. One of which is the music streaming industry, which disrupted and forever changed the music industry as we once knew it. The days of vinyl and CDs have been replaced by streaming platforms, which enable users to have thousands of songs at their fingertips.
Not only has the shift towards music streaming changed the way we listen to music, but also the way the music industry makes money. The majority of revenue now comes from streaming music, and only a handful of companies dominate this market.
Streaming revenues
The International Federation of the Phonographic Industry (IFPI) releases global music reports on an annual basis. The 2019 report indicated that streaming, including subscription audio streams and ad-supported streams, accounted for 56.1% of global recorded music revenues. This percentage represents $11.4 billion, a 22.9% increase from 2018.
Leaders in music streaming
While there are many free music streaming options, we are zooming in on platforms with paid subscriptions. Tencent Music, which includes QQ Music, Kuwo and Kugou, led the pack in terms of monthly active users (MUAs), however, in terms of paid subscriptions, Spotify led with a 34% share. Below are the platforms with the biggest market share in Q2 2020:
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