Over the Past Two Years, Streaming Subscriptions Have Quadrupled In the US…

Actually, more than quadrupled. Which is quite astounding considering that most Americans had no idea that Spotify or Muve even existed two years ago.  Muve Music was just getting started in early 2011, and Spotify crossed the Atlantic in July of the same year.  Fast-forward to 2013, and both have a collective subscriber group of about 2.3 million, with Rhapsody tossing an extra million into the pot.

Which means that paid subscribers have more than quadrupled over the past 24 months, a growth rate of roughly 340%.  Which looks like this, according to public disclosures by the companies.

Of course, paid downloads from places like iTunes and Amazon are also increasing, though the idea that one is feeding the other is looking increasingly misguided.

10 Responses

  1. Muve Music is #1?

    Muve Music will be at around 2 million paying subscribers in 12 months.

    It has bundled Muve Music with Android phones. As more people switch to Android from feature phones on Cricket, they will get Muve Music automatically.

    Cricket Wireless is small though with only 5-6 million users. (about 5% of AT&T). So their potential is limited.

    However, 2 million in 12 months, 3 million in 24 months are very doable as Cricket move more and more of their user base onto Android.

  2. Billboard put streaming at 30%

    In an Billboard Biz article today, Billboard said streaming is now around 30% of a label recorded music revenue.

    Tracks: 41.9%

    Albums: 30.7%

    Subscription: 13.1%

    Digital Performance (Pandora, SiriusXM, iheart radio etc..): 14.3%

    This is without Youtube/VEVO revenue. Add in Youtube/VEVO, streaming should be at around 30% right now.

    On the same article, Beggars Music Group treats streaming as licensing so they pay 50% royalties on it. And the majority of Beggars Music Group artists are earning more from STREAMING than from DOWNLOADS.

    • Ooohlya

      Billboard? It’s just the label cheerleader and pom squad in one. First of all they use all percentages in the article and mention not one thing about revenues tanking from everything else — so duh, streaming means more obviously in that case.

  3. jw

    All of this info is super encouraging.

    A growth of ~160m digital downloads over two years when the industry is quickly maturing isn’t anything to shake a stick at. I think the growth percentage comparison is misleading… there’s nothing to suggest that Spotify’s 20m or however many free users who haven’t transitioned away from a music ownership & use the service as a discovery tool aren’t making up a portion of the digital downloads growth, nevermind making up for the millions of (presumably more active than average) consumers who have abandoned ownership in favor of the subscription model. I don’t see what’s misguided about that. Subscribers are consumers who are ditching the ownership model, that growth shouldn’t correlate to more digital downloads.

  4. Diana_at_Work

    A recent report by DigitalMusicNews has shown that Deezer‘s paid subscriber rate is growing faster than that of Spotify.

  5. Danny

    Shouldnt that that final statement read “though the idea that one is CANABALISING the other is looking increasingly misguided”. A 14% increase in a-la-carte sitting with a 340% increase in subs surely kiils that argument. The overall market is growing, and without doubt, streaming is spearheading that growth.

    • Visitor

      Downloads went up by over 150 million.

      Streaming subscribers went up by ~3 million.

      Don’t think the argument is as killed as you think. But I do think some folks play percentage games when they fit their desired outcome. Small numbers rising lead to bigger percentage increases than large numbers rising!

  6. Andy

    Not surprising that there are many new companies setting up in the music streaming space, trying and succeeding in taking business from Spotify. There’s Rdio, Rara.com and Deezer. Lots of choice now.