Spotify still leads other music services, but its market share has fallen – TechCrunch
Music streaming continues to grow around the world. According to a new MIDiA report, an entertainment research company, 523.9 million people subscribed to a music streaming service worldwide in the second quarter of 2021. This represents an increase of 109.5 million (26.4%) compared to the ‘last year.
Although Spotify remains the most subscribed streaming service, holding 31% of the market, its dominance is very slowly diminishing – it held 33% of the market in 2020 and 34% in 2019. Spotify has added more total subscribers in the year before in Q2 2021 than its competitors, but while Spotify was up 20%, Amazon Music was up 25%. Meanwhile, Google’s YouTube Music grew by more than 50% in the year leading up to the second quarter of 2021, making it the only Western streamer to have increased its overall global market share. Chinese gaming giant Tencent, which operates Tencent Music, has the same percentage market share as Amazon Music.
Market share of Amazon Music and Apple Music may continue to grow – as this report only covers through Q2 2021, it will not show the impact of lossless audio on Amazon and Apple in May . Nearly a year ago, Spotify announced that it would launch a premium subscription called Spotify Hi-Fi, which would give subscribers their music in a “lossless CD-quality audio format”. But Spotify still hasn’t said when this product might be available.
And then there’s Tidal, which has always targeted consumers looking for a higher quality audio experience. Although Tidal’s lossless audio costs $9.99 per month – the same cost as Apple Music, and only two dollars per month more than Amazon Music – Tidal has less than 2% global market share, according to the MIDiA report. Founded by Jay-Z and later acquired by Block, Tidal bills itself as a service that helps artists share their music “precisely the way the artist intended” (i.e. in very high quality sound).
But under Block’s ownership, the idea of an artist-friendly streaming service isn’t just about sound — now the company is experimenting with ways to make music streaming more profitable for artists. Earlier this year, Tidal introduced fan-centric royalties to its top tier HiFi Plus ($19.99/month), which means 10% of a user’s subscription will go directly to their artists. more listened to.
Will this move help Tidal gain new subscribers who care about paying artists more than premium audio? It’s a worthy try – after all, user-centric payment streamer Deezer has 2% of the pie, which is more than Tidal.