Market Trends of Media Streaming Industry
Music Streaming Segment is Expected to Witness Significant Growth
- Music streaming providers are offering exclusive content with podcasts and original content, which first attracts people towards the platform and eventually turns them as subscribers. Moreover, promotional activities like price cuts in subscriptions in growing markets and bundled offers from telecommunications players are expected to boost the growth further.
- For instance, according to the data from Spotify, in the third quarter of 2023, the music streaming service Spotify reached an all-time high with 574 million active users worldwide. Moreover, according to the data, the number of active users worldwide on the Spotify platform grew to 574 million active users in the third quarter of 2023 from 456 million active users in the third quarter of 2022.
- One of the most well-liked trends in the global market is the expanding use of 5G connections. Amazon has taken advantage of this chance by launching a new music HD service that will give music lovers in the United States, the United Kingdom, Germany, and Japan access to lossless music streams and downloads. As 5G becomes more commonly used, businesses will be able to provide high-fidelity music streams because of its ability to transport data multiple times quicker than 4G. Virtual Reality (VR), Augmented Reality (AR), and hologram concerts are anticipated to become quite popular for live-streaming music videos. These new developments are accelerating the market's expansion.
- Players in the market are offering new features such as curated playlists, night mode, and lossless music for improved targeting, which is also providing companies with a competitive edge over others, thus making the market competition stronger. This is also done to improve customer retention as the number of options in the market increase continually. For instance, between December 25, 2021, and January 31, 2022, about 82,000 New Year's Eve playlists were made; on New Year's Eve itself, almost 40,000 playlists were made.
- Although global players are strongly penetrating their music streaming platforms by adopting various strategies, regional players still have a stronghold in their respective regions, owing to regional exposure and a high focus on local content. For instance, Gaana continues to be the number 1 player in the Indian market, whereas Yandex Music is leading in Russia. Similarly, Tencent Music Group is one of the leading players in China market because of its apps QQ Music, Kugou, and Kuwo.
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Asia Pacific to Witness Significant Growth
- Rising investment in content creation has led to the creation of new content offerings. Increasingly, India is becoming one of the content hubs, with a wealth of material being created for consumption locally and around the world. Further, the video streaming segment is gaining significant traction among users in countries like China, Japan, South Korea, Indonesia and Thailand, thus positively impacting the growth of the market.
- Although North America still dominates the media streaming market, Asia Pacific is showing a rapid increase in the growth rate. The significantly high penetration of mobile phones and internet in Asia Pacific region is positively impacting the growth of streaming market vendors in the region. Giants such as Disney and Apple Inc. are leveraging growing mobile usage and rapidly improving access to faster-speed Internet.
- According to IFPI Music Report 2022, Engaging with Music 2022 is a global report on how people all around the world enjoy and engage with music. It was published today by IFPI, which represents the recording business globally. The survey, which is based on responses from more than 44,000 people in 22 countries, is the biggest music study ever conducted. More than 45% of customers choose paid membership services, and 46% of respondents use audio streaming subscription services, which provide continuous and on-demand access to millions of licensed songs.
- Moreover, 97% of the population listens to music using a smartphone; 62% use social media sites or apps to listen to music or watch music videos. This shows the ongoing transformation towards digital media in the region is further expected to grow the market for media streaming.
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