Market Trends of Music Industry Landscape
Music Streaming to Witness the Largest Revenue Generation
- With the rapidly growing internet penetration across the globe, the music industry has gracefully adopted the digital trend. Physical music revenue is continuously declining, and online streaming platforms like Spotify, Apple Music, Youtube Premium, and Tindle have gained traction over the years. For instance, the world's largest music streaming service, Spotify, claimed 195 million paid users in the third quarter of this year, exceeding forecasts and up from 188 million paid or premium customers in the previous quarter.
- Shortly, it is projected that the growing use of smart devices and the widespread acclaim of several cutting-edge digital platforms will benefit the sales of music and streaming services. The podcast genre is growing in popularity among millennials, which is good for the market. This is because more podcasters now talk about unresolved global problems.
- Companies in the music industry are forming extensive strategic alliances with music recording players and advanced online music streaming services. For instance, a wide variety of PTZ camera series, video switchers, and wireless video transmitters have all been introduced, according to Sky Wire Broadcast. The new selection is an addition to Sky Wire Broadcast's current offerings for the current year. This streaming platform, Powered, will offer the companies a suite of solutions for music and media streaming, download infrastructure, applications, rights management, customer billing, royalty administration, and business intelligence.
- Youtube is the second-most-visited website worldwide. One of the major reasons for this is music streaming. After the song Despacito by Latin American artist Luis Fonsi (Despacito) received the most views on YouTube, it boosted the region's music market's growth and investments. According to YouTube, the song has gained 7.85 billion views this year, followed by Ed Sheeran's Shape of You at 5.72 billion views.
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United States to Dominate the Market
- The increased revenue of recorded music has driven the music market in the United States in the last year due to an increasing number of paid subscriptions. According to the report by the music association in the country - RIAA, Thirty-two percent of all music streaming customers had a Spotify subscription in the first quarter of this year, which is nearly twice as many as those who had an Amazon Music subscription.
- One of the important elements expected to fuel demand for music markets and streaming services in this region is the existence of numerous well-known businesses there, including Pandora Media, Inc., Google LLC, Apple, Inc., and Amazon.com, Inc.
- Other elements likely to encourage growth in this area are the accessibility of connected devices, fixed broadband speeds and coverage, and an established digital payment system. Many service providers likewise make sizable investments in creating cutting-edge platforms for use in automobiles.
- Additionally, the regional companies are setting examples by achieving continuous revenue growth. For instance, Universal Music Group reported strong profitability for the second quarter with almost USD 2.7 billion in revenue, an increase of 17.3% year over year in constant currency, and a percentage gain that lasts for the whole first half of the current year.
- Moreover, the streaming music service providers in the country are strategically competing by launching bundle packs. Financial Times has mentioned that Apple may merge its Apple Music and Apple TV with its video streaming services launch and offer a bundle pack at USD 13 per month. With this launch, Apple has planned to generate over USD 50 billion in revenue annually by the last year, giving heavy competition to its rival Spotify.
- Such competition and investment by music recording companies are expected to continue in the forecast period, boosting the country's music market.
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