A new report underlines the scale of the streaming-powered music business.
Based on new research, the US has reached 99 million streaming subscribers and 117 million users of advertising-supported services, and more than $10 billion in revenues generated for the broader music industry.
According to the new Streaming Forward report commissioned by the Digital Media Association (DiMA), the music industry is on track to achieve all-time highs for growth and revenue over the next five years as the streaming revolution continues to drive the industry forward.
Total US music streams reached the one trillion mark in 2019.
“This report illustrates the enduring appeal of streaming to fans and its larger contributions to the music economy,” said Garrett Levin, CEO of the Digital Media Association (DiMA).“The connection between fan, artist, song and platform is powerful. At the same time, I firmly believe we must recognise these are uncertain times and we should approach the future with caution and humility, and an understanding that our collective futures are intertwined.”
According to the report by MIDiA Research, streaming generates $28.2 million every day, accounting for 80% of the music industry’s revenue
At the end of 2019, there were 87.2 million streaming music subscriptions in the US (up almost 20% year-on-year) and 99 million authorised subscribers within those accounts.
US streaming revenue makes up 77.4% of total recorded music industry revenue, up from 72% in 2018. In 2019, overall streaming revenues in the US increased by 21% over 2018 totals to $10.3 billion
The US had 71 million smart speaker users in 2019, which quadrupled in just two years. In the second quarter of 2020, 43% of smart speaker listeners exceeded six hours of music listening each week.
Two-thirds of fans listen to music in the car on a monthly basis – more than twice the proportion who listen to music at home on speakers, and significantly higher than the 58% who listen to music regularly on their phones.
“Today’s music fan wants to listen to whatever music they want, wherever and whenever they want it, and thanks to the continuous innovations of streaming services, artists and songwriters can deliver that music directly to listeners whether it be in person, on the go, or wherever they are at that moment,” said Levin.
“The result: a music industry that has returned to strong annual growth that benefits everyone, buoyed by the continued growth of consumer-friendly streaming choices that now account for more than three-quarters of total industry revenue.”