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Q2 2021 music subscriber market share

MIDiA’s annual Music Subscriber Market Share Report is now available here (see below for report details). Here are some of the key findings.

The global music subscriber base continues to grow strongly with 523.9 million music subscribers at the end of the second quarter of 2021, an increase of 109.5 million (26.4%) compared to last year. ‘last year. Above all, it is a faster growth than the previous year. There is a difference between revenue and subscribers – with ARPU deflators, such as the rise of multi-user packages and the growth of low-spend emerging markets – but the growth of monetized users represents the lifeblood of streaming of the digital service provider (DSP). Marlet. So the acceleration in growth at this relatively late stage in the evolution of the streaming market is clearly positive.

Spotify remains the DSP with the highest market share (31%), but this was down from 33% in the second quarter of 2020 and 34% in the second quarter of 2019. Apple Music trailed far behind with 15% of market share, and Spotify adding more subscribers in the 12 months to Q2 2021 than any other single DSP, there’s no risk that Spotify will lose its leadership position any time soon – but the erosion of its part is regular and persistent. Amazon Music once again outperformed Spotify in terms of growth (25% vs. 20%), but the most notable achievement among Western DSPs was YouTube Music, for the second year in a row. Google was once the laggard of the space, but the launch of YouTube Music transformed its fortunes, growing more than 50% in the 12 months to Q2 2021. YouTube Music was the only western DSP to increase its share global market during this period. the period. YouTube Music is particularly resonating with Gen Z and younger millennials, which should ring alarm bells for Spotify as their 2010s millennial subscriber base in the West is now starting to age.

But the strongest subscriber growth has come from emerging markets. Between them, Tencent Music Entertainment (TME) and NetEase Cloud Music added 35.7 million subscribers in the 12 months to Q2 2021. Together they accounted for 18% of global market share, although they did not are only available in China. Yandex in Russia was the other big winner, doubling its subscriber base to 2% global market share.

Combined, Yandex, TME and NetEase account for 20% of subscriber market share, but they drive 37% of total subscriber growth in the 12 months to Q2 2021.

Strong subscriber growth has additional significance through 2022. The surge in non-DSP streaming in 2021 means that the streaming market is no longer reliant on revenue contribution from maturing Western subscriber markets ( or even emerging markets that dilute ARPU). Non-DSP streaming revenue is expected to have contributed between a quarter and a third of streaming revenue growth in 2021, streaming revenue is expected to see strong growth, even as subscriber growth declines. This is called a diversified market.

A little more detail on the Subscriber Market Share report:

The report has 23 pages and 13 figures showing country-level subscriber counts, revenue, and demographics by DSP. The attached dataset contains quarterly subscriber counts and annual revenue figures from Q4 2015 through Q2 2016 by DSP by country, with 33 markets and 27 DSPs. The report and the dataset is available for MIDiA subscribers hereand also available for individual purchase through the same link.

E-mail stephen@midiaresearch.com for more details.