Mobile Music Market To Reach $12 Billion
BOSTON, Sept. 29, 2016 /PRNewswire/ -- Share of value from streaming will grow from 76% in 2015 to 95% in 2022 in the total mobile music market, while the number of users will more than double to reach 950 Million, according to the latest forecast by Strategy Analytics.
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The report "Global Mobile Music Forecast 2010-2022" finds that despite a decline in full-track downloading segment, overall growth in streaming music, both paid and ad-funded free services, are driving the market growth. The full report can be accessed by clients here: http://sa-link.cc/1gv
"Streaming music services are proving a better fit for mobile music than music download stores," says Nitesh Patel, Director, Wireless Media Strategies from Strategy Analysis. "On the demand-side the growth in mobile streaming is being driven by increasing consumer demand for anywhere and anytime access to tens of millions of tracks via streaming music services, like Apple Music, Google Play Music, Spotify, and YouTube, instead of downloading or side-loading. On the supply-side higher smartphone penetration, as well as competitive data plans offered by operators, including zero-rated and unlimited data plans, are removing consumers' concern for data overage when listening to music on the move. Furthermore, the ability to store tracks for listening in offline mode has become an option that appeals to consumers in markets where networks may be patchy, or data cost high, or data allowance low."
"Important markets like Japan, which transitioned late from consumption of physical music to digital music, have largely bypassed download and gone directly to streaming. We have seen competition between services driving prices downwards. For example, when Apple Music was launched, being a late comer to the market, it applied a more flexible pricing policy in selected markets to challenge incumbents like Spotify. For example, Apple Music's individual subscription priced $0.20 lower than Spotify in Hong Kong, while its family package is more competitive than Spotify's in all the markets served by both," adds Wei Shi, a Wireless Media Strategies analyst and author of the forecast.
The report also notes that the majority of streamers use free, ad-funded offers, and will remain so until the end of the forecast period. In markets like Eastern Europe and Latin America, advertising income is already comparable to premium payment. However, much to the chagrin of the music industry, in most advanced markets, e.g. Western Europe, North America and advanced APAC, the advertising income is still very small. This discrepancy will continue to drive music labels and other right owners to go for higher licensing fees from OTT services. The battle between paid subscription and ad funded will keep everyone in the mobile music industry on the edge of his seat.
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com
European Contact: Wei Shi, +44 1908 423627, wshi@strategyanalytics.com
US Contact: David Kerr, +1 617 614 0720, dkerr@strategyanalytics.com
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SOURCE Strategy Analytics
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