The global online music streaming revenues have declined 2 percent quarter on quarter but grew by 13 percent over last year at 6.7 billion US Dollars. The fall in music streaming arrives after the sudden surge that occurred earlier this year due to the Coronavirus pandemic.
According to a Counterpoint Research report, the paid subscriptions for online music streaming grew by 29 percent year on year over 35 percent in the previous quarter. Research Analyst Abhilash Kumar stated that “The growth slowed down in the second quarter and, for the first time, the revenues declined sequentially. There are a couple of reasons for the same. Also, the advertisement revenues saw a dip since many companies opted to cut expenditure in view of the COVID-19 pandemic. However, podcasts related to different genres were able to keep people glued, offsetting some of the decline.”
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In terms of overall monthly active users, Tencent Music, along with its subsidiaries QQ Music, Kuwo, and Kugoi, led the charts in Q2 2020 with a 26 percent share, followed by Spotify and YouTube Music with 12 to 10 percent shares respectively. However, Spotify led the paid subscriptions numbers, with a 34 percent market share followed by Apple Music at 21 percent and Amazon Music at 15 percent.
For those unaware, while various nations, economies, and industries faced the impacts of the pandemic and the subsequent lockdowns, the online streaming market remained unaffected. Rather, the industry saw a boom during this time in both paid subscribers and overall userbase as people stayed indoors. Although, this surge has already started to decline quarter on quarter and is expected to reach pre COVID-19 levels by Q4 2020.
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