Despite the recent music streaming decline and the far-reaching economic impact of the coronavirus (COVID-19) crisis, market-research company Counterpoint is anticipating a sizable uptick in streaming-service subscriptions this year.
Counterpoint voiced the sunny prediction in a press release, which also highlighted the stellar commercial performance of music streaming in 2019. The research brand cited exclusive podcasts, bundled offers, and lessened pricing in developed markets as the chief contributors to a 32 percent year-over-year increase in the total number of music streaming subscriptions in 2019.
And based upon this solid growth, Counterpoint stated that they expect music streaming platforms’ subscription count to hike by approximately 25 percent in 2020, to roughly 450 million by the start of 2021.
This expectation is seemingly at odds with other analyses and predictions, which maintain that the financial strain of the coronavirus will prompt many subscribers to cancel their streaming services first, if push comes to shove. Additionally, music streaming’s relative decline—and video streaming’s relative increase—amid the coronavirus pandemic has been well documented.
Counterpoint’s report provided other interesting statistics and information, too.
Spotify secured 35 percent of total paid subscriptions in 2019, according to the study, while Apple nabbed about 19 percent of paid subscriptions. Significantly, despite this relative discrepancy in subscription numbers (16 percent), Spotify boasted a 31 percent share of total music streaming revenue, whereas Apple’s portion of earnings came in at 24 percent—a difference of just seven percent.
Next, the report reiterated the continued dominance of regional music-streaming services, even as brands like Spotify are attempting to increase their international prevalence. Gaana is the clear-cut leader in India, for instance, as is Anghami in Arab nations and Tencent in China.
Finally, Counterpoint’s analysis indicated that Amazon Music is quickly catching up to Apple Music in terms of paid subscriptions. Apple Music’s share of overall paid subscriptions stands at about 19 percent, once again, while Amazon Music’s premium subs comprise 15 percent of the market, up from 10 percent in 2018.
Financial professionals recently signaled that the coronavirus crisis could inflict a $2.7 trillion blow to the world’s economy, purely in terms of lost output. That’s obviously dragging broader markets, though Spotify’s stock (SPOT) has proven relatively resilient despite broader fears of softening listening hours and subscriber growth.