Over the past decade, music streaming services have turned from a minor revenue stream into the driving force of the music industry, counting more users and grossing more revenue than ever. According to data presented by OnlyAccounts.io, streaming services made a whopping $17.bn or 67% of global music revenue last year.
Music Streaming Revenue Share Has Increased Tenfold in the Past Decade
The music industry is far from where it was ten years ago, thanks to streaming platforms like Spotify, YouTube Music, and Apple Music. Their huge popularity among Gen Zers and Millenials, who prefer the subscription economy, has helped these services reach hundreds of millions of users worldwide and become the largest revenue stream in the music industry.
According to IFPI’s Global Music Report, back in 2012, streaming made only 6% of the total music industry revenue, or roughly $900 million. Three years later, its revenue share more than tripled and hit 19%, with streaming services grossing $2.7bn that year.
But that was nothing compared to the growth rates seen in the next three years. Statistics show that in 2018, streaming generated $8.8bn in revenue or 50% of the global music revenue. The strong growth has continued ever since, with streaming services doubling their revenue share and making a whopping 67% of global music revenue last year. This means that streaming revenue share has increased tenfold in the past decade, while revenue skyrocketed by more than 1,800%, jumping from $900 million in 2012 to $17.5bn in 2022.
Analyzed by platforms, Spotify remained the absolute king in the music streaming industry, with a 28% market share last year. YouTube Music ranked as the second-most-popular platform with a 14% share. Amazon Music, Apple Music and Soundcloud followed, with 13% and 8% shares, respectively.
Music Streaming Platforms to Hit One Billion Users in 2024
Although streaming services already have a lion`s share in the music industry revenue, their market share will continue growing as they reach more users than ever.
According to a Statista survey, since 2018, music streaming platforms have added 450 million subscribers, pushing the total user count to 920 million in 2023. Subscriptions grew by an average of 80 million per year in this period, with 2020 and 2021 seeing the biggest growth rates.
In 2020 alone, around 140 million people started paying music streaming subscriptions, and another 100 million in 2021. The user penetration rate practically doubled in this period, rising from 6.5% in 2018 to 12%.
Statista expects the entire market to hit a massive milestone next year, with streaming services reaching one billion subscribers for the first time.
