About this Market
The music subscription market includes online services which are either available for free (normally ad-supported) or via a premium monthly subscription. Users can stream music to a number of companion devices and can benefit from a range of value-added features, such as music recommendation functions, playlist publishing & sharing and download and synch between multiple devices.

If we look at the period from 2013 to 2017, then the total revenue earned by all record companies worldwide will increase from USD 16,749 million to USD 17,286 million, or by 3.2%. Revenues from physical formats will fall by USD 2,090 million and revenues from digital download sales will fall by USD 663 million. Revenues generated from publishing rights will increase, but only by USD 322 million. But music subscription revenues will increase by USD 2,969 million – by far the largest growth segment and the engine that will drive the music industry’s growth for the next 5 years.

Report Content
This report offers a detailed analysis of the worldwide music subscription market. You will be able to read detailed reviews of 13 leading music subscription services, including Apple, Pandora, Spotify, Deezer and Google. The report also analyzes the music subscription services market in the 5 largest digital music markets worldwide (USA, Japan, United Kingdom, Germany and Australia).

This report also contains a very detailed analysis of the business model that underpins all music subscriptions services. Contained in this detailed report you will also find comprehensive 5-year market forecasts, a roadmap for upcoming features and and a clear set of action points for how existing music subscription service providers can further develop their businesses.



This report contains the following main sections:

Executive Summary

Profiles of 13 Leading Music Subscription Service Providers

Company information

Service descriptions

Market data

Analysis

Music Subscription Around the Globe

United States

Japan

United Kingdom

Germany

Australia

Market Analysis

Conclusion and Recommendations

Market Forecasts

Appendix

Including a representative sample of activity across the entire music subscription market, worldwide, this report includes detailed profiles and analysis for the following 13 music subscription services:

  • Amazon: Cloud Player
  • Apple iTunes Radio
  • Apple: iTunes Match
  • Baidu: Baidu Music (China)
  • Deezer
  • Google: Google Play Music
  • JB Hi-Fi (Australia)
  • Microsoft: Xbox Music
  • Pandora
  • Rhapsody
  • Simfy
  • Sony: Music Unlimited
  • Spotify

This report contains 5 country-level profiles detailing the music subscription market in the world’s 5 largest music markets:

  • United States
  • Japan
  • United Kingdom
  • Germany
  • Australia

This report contains the following market forecasts:

Aspect of Market  Geographic Coverage Period
Recorded Music Market: Worldwide (Trade Value) Shown Separately for Physical formats, Digital Formats, Performance Rights and Synchronisation Rights Worldwide 2013 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) (USD, Billions) Worldwide 2005 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) (USD, Billions) Worldwide 2013 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) (USD, Billions) Worldwide 2013 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions (USD, Billions) Worldwide 2008 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions (USD, Billions) Worldwide 2013 to 2017
     
Figure 30: Digital Music Subscription Market – All Registered Users Shown Split into Non-paying and Paying Users, Millions and Percent. Worldwide 2013 to 2017
     
Digital Music Subscription Market – Paying Users and Industry Revenues, Millions and USD, Millions. Worldwide 2013 to 2017
     
Digital Music Subscription Market – All Users and Industry Revenues from, Millions. Worldwide 2013 to 2017
     
Digital Music Subscription Revenue USD, Millions) Worldwide and Regional 2013 to 2017
     
Digital Music Subscription Services – All Registered Users (Millions) Worldwide and Regional 2013 to 2017
     
Digital Music Subscription Services – Paying Users (Millions) Worldwide and Regional 2013 to 2017
     
Pandora Media Comparison of Operating Cash Flow with Google, Yahooo, Sirius XM Radio, ITV Worldwide 2008 to 2013
     
Recorded Music Market: Worldwide (Trade Value) Shown Separately for Physical formats, Digital Formats, Performance Rights and Synchronisation Rights - USD, Billions Worldwide 2013 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) (USD, Billions) Worldwide 2005 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions (USD, Billions) Worldwide 2013 to 2017
     
Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions (USD, Millions) Worldwide 2013 to 2017
     
Digital Music Subscription Market – Percentage of Registered Users who Pay, Percent Worldwide 2012 to 2017
     
Digital Music Subscription Market – All Registered Users Shown Split into Non-paying and Paying Users, Millions and Percent. Worldwide 2013 to 2017
     
Digital Music Subscription Market – Average Trade Revenue User, USD Worldwide 2013 to 2017
     
Digital Music Subscription Revenue  (USD, Millions) Worldwide and Regional 2013 to 2017
     
Digital Music Subscription Services – All Registered Users (Millions) Worldwide and Regional 2013 to 2017
Digital Music Subscription Services – Paying Users (Millions) Worldwide and Regional 2013 to 2017

 

 

This report contains 43 figures and tables:

 

FIGURES
Figure 1: Pandora Media - Comparison of Operating Cash Flow with Google, Yahooo, Sirius XM Radio, ITV from 2008 to 2013
Figure 2: Pandora Media – Stock Price from June 2011 to November 2013 (USD)
Figure 3: iTunes Radio Interface for iPad
Figure 4: iTunes Station Editing Options for iPad and iPhone
Figure 5: iTunes Radio Social Sharing
Figure 6: Deezer Interface for Android Mobile
Figure 7: Deezer Offline Track Selection
Figure 8: Deezer Livebar Feature
Figure 9: Pandora Interfface
Figure 10: Pandora Mobile Interface for iPhone
Figure 11: Simfy Interface for PC/Mac and Mobile
Figure 12: Simfy Africa Interface
Figure 13: Music Unlimited Interface
Figure 14: Music Unlimited Premium and Access Subscription Plans
Figure 15: Music Unlimited Sharing Features (Facebook and Twitter)
Figure 16: Spotify Interface and Spotify for Mobile
Figure 17: Spotify Follow Artist Feature
Figure 18: Spotify on Connected Devices
Figure 19: Percentage of Digital Music that is Subscriptions
Figure 20: Evolution of Music Subscription Services – 2003 to 2013
Figure 21: Pandora Media - Comparison of Operating Cash Flow with Google, Yahooo, Sirius XM Radio, ITV from 2008 to 2013
Figure 22: Pandora Media Percentage of Listening Hours that is Mobile from 2008 to 2013
Figure 23: Pandora Media – Stock Price from June 2011 to November 2013 (USD)
Figure 24: Recorded Music Market: Worldwide (Trade Value) Shown Separately for Physical formats, Digital Formats, Performance Rights and Synchronisation Rights - USD, Billions
Figure 25: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2005 to 2017 (USD, Billions)
Figure 26: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (USD, Billions)
Figure 27: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (USD, Billions)
Figure 28: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions from 2008 to 2017 (USD, Billions)
Figure 29: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions from 2013 to 2017 (USD, Billions)
Figure 30: Digital Music Subscription Market – All Registered Users Shown Split into Non-paying and Paying Users, from 2013 to 2017, Millions and Percent.
Figure 31: Digital Music Subscription Market – Paying Users and Industry Revenues from 2012 to 2017, Millions and USD, Millions.
Figure 32: Digital Music Subscription Market – All Users and Industry Revenues from 2012 to 2017, Millions and USD, Millions.
Figure 33: Digital Music Subscription Revenue Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (USD, Millions)
Figure 34: Digital Music Subscription Services – All Registered Users, Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (Millions)
Figure 35: Digital Music Subscription Services – Paying Users, Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (Millions)
 
 
 
TABLES
Table 1: Deezer User Growth
Table 2: Pandora User Growth
Table 3: Pandora Revenue Analysis
Table 4: Spotify User Growth
Table 5: Spotify Revenue and Net Loss
Table 6: Internet Access in Australia
Table 7: Leading Music Subscription Services in Australia
Table 8: Internet Access in Germany
Table 9: Leading Music Subscription Services in Germany
Table 10: Internet Access in Japan
Table 11: Leading Music Subscription Services in Japan
Table 12: Internet Access in United Kingdom
Table 13: Recorded Music Sales in United Kingdom
Table 14: Leading Music Subscription Services in United Kingdom
Table 15: Internet Access in United States
Table 16: Leading Music Subscription Services in United States
Table 17: Pandora: Total Data Streamed per Hour
Table 18: Pandora Media Comparison of Operating Cash Flow with Google, Yahooo, Sirius XM Radio, ITV from 2008 to 2013
Table 19: Recorded Music Market: Worldwide (Trade Value) Shown Separately for Physical formats, Digital Formats, Performance Rights and Synchronisation Rights - USD, Billions
Table 20: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2005 to 2017 (USD, Billions)
Table 21: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions from 2008 to 2017 (USD, Billions)
Table 22: Value of Worldwide Digital Music Market (Trade Value) Shown Separately for Downloads and Subscriptions from 2013 to 2017 (USD, Millions)
Table 23: Digital Music Subscription Market – Percentage of Registered Users who Pay from 2012 to 2017, Percent
Table 24: Digital Music Subscription Market – All Registered Users Shown Split into Non-paying and Paying Users, from 2013 to 2017, Millions and Percent.
Table 25: Digital Music Subscription Market – Average Trade Revenue User, from 2013 to 2017, USD
Table 26: Digital Music Subscription Revenue Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (USD, Millions)
Table 27: Digital Music Subscription Services – All Registered Users, Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (Millions)
Table 28: Digital Music Subscription Services – Paying Users, Shown Separately for North America; Western Europe; Central, Eastern & Southern Europe; Asia Pacific; Latin America & Caribbean and Middle East & Africa from 2013 to 2017 (Millions)

 

Table of Contents3

Executive Summary8

Profiles of Selected Music Subscription Services14

Apple: iTunes Radio14

Outline14

Service Features14

Launch and International Rollout16

Subscription Options16

Revenue Model17

User Growth17

Social Media Integration18

Key Competitors19

Analysis19

Deezer22

Outline22

Company Information22

Deezer Service Features22

Revenue Model25

User Growth and Revenues25

Social Media Integration26

Key Competitors27

Analysis27

Pandora30

Outline30

Company Background31

Pandora Service Features31

Service Options33

Usage on Mobile and Other Connected Devices33

Growth in Pandora’s User Base34

US vs. International34

Pandora’s Revenue Model36

Revenue and Net Income/Loss37

Social Media Integration39

Key Competitors39

Analysis39

Simfy42

Outline42

Company Information42

Simfy Service Features43

User Growth44

Revenues45

International45

Social Media Integration46

Key Competitors47

Analysis47

Sony: Music Unlimited48

Outline48

Company Information48

Music Unlimited: Service Features49

Music Unlimited: Service Options49

Sony Music Unlimited: Service Features51

Launch Date and Availability52

Revenue Model52

User Growth and Revenues52

Social Media Integration53

Key Competitors53

Analysis54

Spotify56

Outline56

Company Information56

Spotify Service Features57

Spotify Subscription Options59

Worldwide Availability60

Access via Connected Devices60

Revenue Model61

User Growth and Revenues61

Business Aspects64

Summary of Recent Product & Service Announcements for Spotify64

Social Media Integration65

Key Competitors65

Analysis66

Apple: iTunes Match67

Google: Google Play Music All Access68

Rhapsody69

Amazon: Cloud Player70

JB Hi-Fi: NOW (Australia)71

Microsoft: Xbox Music72

Baidu: Baidu Music (China)73

Music Subscription Services Around the Globe74

Australia74

Overview74

Recorded Music Market in Australia75

Digital Music Market in Australia76

Music Subscription Services77

Market Size in Australia78

Music Piracy in Australia79

Germany80

Overview80

Recorded Music Market in Germany81

Music Subscription Services82

Music Downloads84

Market Size in Germany84

Music Piracy in Germany85

Japan86

Overview86

Recorded Music Market in Japan87

Digital Music Market in Japan88

Music Subscription Services89

Music Downloads91

Market Size in Japan91

Music Piracy in Japan91

United Kingdom93

Overview93

Recorded Music Market in the UK94

Music Subscription Services96

Digital Music Market in the United Kingdom97

Market Size in the United Kingdom98

Music Piracy in the United Kingdom98

United States100

Overview100

Recorded Music Market in the United States101

Music Subscription Services102

Music Downloads104

Market Size in the United States104

Music Piracy in the United States104

Market Analysis106

The Music Subscription Proposition: History, Current Status & Evolution106

Where we’ve come from106

Where we are now106

Where we’re going: the future107

Business Model for Subscription Music Services110

Royalty Payments to Music Publishers and Record Labels110

Analysis: Ad-supported Subscription Music Services111

Analysis: Premium Subscription Music Services119

Financial Viability of the Music Subscription Market120

Royalty payments121

Financing growth122

Apple, Google and Amazon122

Market Anomaly123

Conclusion & Recommendations125

Market Status125

Further Innovation127

Arrival of ‘Super Bundles’127

Self-service Ad Platforms128

B2B Opportunities: Behavioural Data128

Reverse Bundling: Affiliate Model128

Market Forecasts129

Recorded Music Market129

Digital Music Market131

Market Value, Worldwide by Region131

Market Value, Downloads and Subscriptions135

Digital Music Subscriptions140

Users: Paying and Non-Paying140

Average Revenue per User144

Service Revenue: Regional Breakdown145

All Registered Users: Regional Breakdown147

Paying Users: Regional Breakdown149

Appendix  151