Executives at music streaming companies such as Spotify, Tidal and Pandora were probably left with mixed emotions after yesterday’s events at Apple’s Worldwide Developers Conference. On the one hand the already crowded music streaming market just got even more competitive, but on the other hand it seems clearer than ever that streaming is the future of music consumption now that Apple decided to throw its hat into the ring.
So why does everyone want a piece of the streaming pie? Well besides vinyl, which continues to do well in a niche of its own, streaming is the only segment of the music market that is not shrinking right now. In fact, worldwide streaming revenues increased by almost 40 percent last year as the number of subscribers grew from 28 million in 2013 to 41 million by the end of last year. According to IFPI, ad-supported and subscription-based streaming accounted for 32 percent of digital music revenues in 2014, up from just 9 percent in 2008.
In Apple’s case however, the decision to join the subscription-streaming market is probably less about getting a piece of the $2 to $3 billion streaming market and more about tying customers to its own devices. If streaming is what people want and Apple can deliver a compelling service that works seamlessly across all of its devices, it might help Apple not only to protect its core hardware business but to grow it.
The Statista "Chart of the Day", made available
under the Creative Commons License CC BY-ND 3.0, may be used
and displayed without charge by all commercial and
non-commercial websites. Use is, however, only permitted with
proper attribution to Statista. When publishing one of these graphics,
please include a backlink to the respective infographic URL.
The Statista "Chart of the Day" currently focuses
on two sectors: "Media and Technology", updated
daily and featuring the latest statistics from the media,
internet, telecommunications and consumer electronics
industries; and "Economy and Society", which
current data from the United States and around the
world relating to economic and political issues as well as
sports and entertainment.
For individual content and infographics in your Corporate Design,
please visit our agency website
Any more questions?
Get in touch with us quickly and easily. We are happy to help!