Music subscriber market shares 2023: New momentum

With UMG leading the charge to reshape the music industry into a more label-friendly form, 2023 may, with hindsight, go down as the year before everything changed. Whatever lies ahead though, new models will take time to deliver benefits. Music subscriptions are therefore going to remain the bedrock of music rightsholder revenues for the foreseeable future. So, it is a good thing that music subscriptions had such a good year in 2023.

As of Q3 2023, there were 713.4 million music subscribers globally, which was 90 million up on the 623.4 million one year earlier in Q3 2022. This matters for two reasons:

1. We are already nearly three quarters of the way to having one billion music subscribers globally. That is no small achievement. For context, as recently as five years ago, we had only just passed the quarter of a billion subscriber mark
   
2. The 90 million subscribers added in the 12 months to Q3 2023 was more, yes more(!), than the 83.5 million added one year earlier. In fact, the number added was nearly as many as those added in 2020. Not bad for a maturing category with key markets hitting near-saturation

However, there is a bit of a problem with looking at the global market: it is increasingly no longer a global market, but instead, one of two halves: the West and the Global South, with each region throwing off dramatically different metrics and growth narratives.

Nowhere is this better illustrated than in the market share rankings:

• Spotify dominated the global music subscriber base in Q3 2023 with 31.7% market share. More than that, it actually increased its share from 0.4 points from Q3 2022. So, for all the flak Spotify has thrown at it, it outgrew the market in 2023. Newer, emerging market territories were central to this growth, but it was Spotify’s traditional heartland (North America and Europe) that drove the majority (59%) of its subscriber growth. Compare and contrast this with the all-DSP picture, where North America and Europe drove just 29% of subscriber growth, with Asia Pacific accounting for nearly two thirds of all non-Western subscriber growth
  
• China, a market in which only Apple of the Western DSP operates, underpins this non-Western growth, and the clearest manifestation of this is Tencent Music Entertainment (TME). With 102.7 million subscribers in Q3 2023, TME represents 14.4% of all global subscribers, despite this being an effectively China-only number. NetEase Cloud Music (6.1% share and China-only) and Yandex (3.4% share and Russia-only), further represent the dynamic growth from regions where Western DSPs largely do not operate. This is the new, bifurcated nature of the global music subscriber market
  
• Apple Music (12.6%), Amazon Music (11.1%) and YouTube Music (9.7%) represent the remainder of the leading Western DSP pack. Along with Spotify, these three DSPs represent 65% of the global market, but only 59% of 2023 growth. Western DSPs are still the core of the market, but they are collectively losing share. But, even within these four, there is a diverging picture, with YouTube Music and Spotify gaining share in 2023 while Amazon and Apple lost share. Between Q3 2022 and Q3 2023, Spotify added more subscribers than all three other leading Western DSPs combined

2023 was a strong year for music subscriptions, delivering more growth than perhaps had been expected in such challenging macro-economic and geo-political circumstances. Even North America and Europe grew slightly faster in 2023 than in 2022. But, as commendable as squeezing more growth out of otherwise mature markets is, the inescapable paradigm shift is the emergence of the Global South as the growth driver of tomorrow’s music subscriber base.

Want even more detail? Check out the full music subscriber market shares report and data set, with data for more than 20 DSPs across more than 40 territories, with data for every quarter from Q4 2015 to Q3 2023.

For more info email stephen@midiaresearch.com

Announcing MIDiA’s Streaming Services Market Shares Report

As the streaming music market matures, the bar is continually raised for the quality of data required, both in terms of granularity and accuracy. At MIDiA we have worked hard to earn a reputation for high-quality, reliable datasets that go far beyond what is available elsewhere. This gives our clients a competitive edge. We are now taking this approach a major step forward with the launch of MIDiA’s Streaming Services Market Shares report. This is our most comprehensive streaming dataset yet, and there is, quite simply, nothing else like it out there. Knowing the size of streaming revenues, or the global subscriber counts of music services is useful, but it isn’t enough. Nor even, is knowing country level streaming revenue figures. So, we built a global market shares model that breaks out subscription revenues (trade and retail), subscribers, and subscription market shares for more than 30 music services at country level, across 30 countries and regions. You want to know how much subscription revenue Spotify is generating in Canada? How many subscribers Apple Music has in Germany? How much subscription revenue QQ Music is generating China? This is the report for you. Here are some highlights:

 

• At the end of 2016 there were 132.6 million music subscribers, up from 76.8 million in 2015
• In Q4 2016 Spotify’s subscriber market share was 35% and it had $2,766 million in retail revenue
• Apple Music was second with 21 million subscribers at the end of 2016, a 15.6% market share and it had $912 million in retail revenue
• In 2016 Apple was the largest driver of digital music revenue across Apple Music and iTunes
• The US is the largest music subscription market, which Spotify leads with 38% subscriber market share
• The UK is Europe’s largest streaming market, which Spotify also leads
• China’s subscriber base is the second largest globally, but it ranks just 13th in revenue terms
• Japan is the world’s third largest subscription market, in which Amazon has the largest subscriber market share
• Brazil is Latin America’s largest music subscription market

The report contains 23 pages and 13 charts with full country detail as well as audience engagement metrics. The dataset includes four worksheets and a comprehensive methodology statement.

Streaming Services Market Shares is available right now to MIDiA premium subscribers. If you would like to learn more about how to access MIDiA’s analysis and data, email Stephen@midiaresearch.com.

The report and data is also available as a standalone purchase on MIDiA’s report store as part of our ‘Streaming Music Metrics Bundle’. This bundle additionally includes MIDiA’s ‘State of The Streaming Nation 2.1’. This is our mid-year 2017 update to the exhaustive assessment of the streaming music market first published in May. It includes data on revenue, forecasts, consumer attitudes and behaviour, YouTube, app usage and audience trends.

Examples of country graphics (data labels removed in this preview)