Apple Music took 21% of the market share for paid music subscriptions in Q220, Counterpoint research finds. Global online music streaming revenue declined by 2% QoQ, but increased by 13% YoY in Q2 2020 to $ 6.7 billion dollars, according to the latest Counterpoint Research findings. This is the very first QoQ decline in revenue as music streaming has gained strength with each passing quarter. Paid subscriptions increased by 29% compared to 35% in the first quarter.
Research analyst Abhilash Kumar said in a statement: “Growth slowed in the second quarter, and for the first time revenues fell sequentially. There are a couple of reasons for this. The music streaming platforms provided discounts and lowered prices for paid subscriptions to keep consumers or to prevent them from switching to a free plan. Advertising revenues also declined since many companies reduced expenses with COVID-1
In terms of monthly active users, Tencent Music (with subsidiaries QQ Music, Kuwo and Kugou) led the chart in the second quarter of 2020 with a 26% share, followed by Spotify and YouTube Music with 12% and 10% shares, respectively. However, in terms of paid subscriptions, Spotify continued to lead with a 34% share, followed by Apple Music (21%) and Amazon Music (15%).
Kumar added: “The social media platform and the free availability of music help Tencent Music to maintain No. 1 spot when it comes to MAU. For similar reasons, YouTube Music is also among the top three. Strong brand presence, attractive offers, continuous product improvisation and a focus on podcasts have helped Spotify. Apple Music’s free six-month subscription offer in 52 countries helped maintain its share. ”
The music streaming industry was almost immune to the ill effects of COVID-19 in Q1. In fact, streaming hours increased as people stayed home. From the second quarter, the market experienced a decline in growth, driven by a sequential decline in both paid and advertising-based revenues. From the end of June, growth will slowly return to normal. We believe growth will return to levels before COVID-19 by Q4 2020.
Our thorough ‘Global Online Music Streaming Market Tracker, Q2 2020’ can be downloaded here.
MacDailyNews Take: Compared to Counterpoint’s calendar year 2019, you can see that Apple Music is growing and the fastest as well:
Apple Music has made Spotify’s future clearly weaker.
The best customers are those who pay. As can be seen from many years of data, from various sources, paying customers are also significantly more likely to be iPhone owners than those who have settled for bad iPhone faxes. A healthy portion of these sought-after customers will turn to Apple’s comprehensive offering that offers better family rates, more music, probably exclusives and seamless integration on all Apple devices. It will even work with crappy Windows PCs and Android phones in the end (not that it will probably be Spotify’s paying customers, but whatever, some of them will join Apple Music and maybe even upgrade to Apple devices because of it).
Spotify can quickly be left with an unprofitable system, with a declining music library because they can not afford to pay music fees. – MacDailyNews, June 9, 2015