The State of Streaming in 2016
For the first time in 20 years, the music business is enjoying economic growth. It’s predicted that industry revenue will double in the next 10 years, with success fueled by paid streaming subscribers and the competition between platforms to get them.
A recent report from the Recording Industry Association of America (RIAA) showed 112% year-over-year revenue growth from over 100M music streaming subscribers. Paid streaming users generated $1.01B for the industry in the first half of 2016, and Spotify UK was profitable by $1.8M, with subscriptions being the biggest income channel.
There’s never been more ways to make money, but it’s hard to keep up with everything. We broke it down for you.
Here are some of the biggest milestones this year:
Spotify: 100M users, 40M paid, 60 countries
January - buys Cord Project and Soundwave to expand social features and messaging.
March - Releases new discovery playlist series called “Fresh Finds,” featuring five different genres playlists and one that’s all-encompassing.
April - Billboard partners exclusively for new chart information and Spotify buys CrowdAlbum to create new marketing tools for artists.
May - announces 12 original video shows and expands it’s $14.99 family plan to six users
July - Releases two radio shows called AM/PM and Secret Genius, which feature artist-hosted content.
August - Launches ‘Release Radar,’ an personalized Friday playlist that features personalized new releases.
September - Launches in Japan, reaches 40M paid subscribers, a huge leap from the 30M reported in March, releases new algorithmic personalized playlists, “Daily Mix.”
November - Acquires Preact, a cloud based platform and service.
Notable Partnerships: Headspace, Sonos, Tinder, Headcount.org, ACE Media, Sonos, ATTN, Bumble, Playstation, Capitol Hill, Amazon Echo, Genius, Runkeeper App, Google Cloud Platform, Council of Chief State School Officers’ (CCSSO) National Teacher of the Year Program.
Apple Music: 20M paid users, 115 countries
January - Incorporates iTunes Radio into Apple Music and makes Beats 1 a lone free-to-stream offer.
February - Apple Music's first scripted TV series, featuring Dr. Dre, announced and the 1975 teamed up with Beats 1 for a live streamed performance.
April - Android phones get music video support and family membership option.
May - Drake’s album Views hits 1M downloads in less than 5 days of Apple exclusivity.
June - New design launches. The service includes lyrics, a daily curated playlist, and a downgrade of the social feed Connect.
August - 10th anniversary Apple Music Festival made available live and on demand. It featured Alicia Keys, Elton John, Calvin Harris, Britney Spears, and more.
November - Invests in assets from cloud music provider Omnifone.
September - Offers gift cards + annual rate of $99 and updates design.
December - Surpasses 20M subscribers 17 months after launch.
Notable Partnerships: Sonos, Dubset Media Holdings, NBC Sports, NASA, T-Mobile, Carpool Karaoke, Bloomberg Radio, Cash Money Records, Deutsch Telekom.
Notable Artist Exclusives: Future, Drake, Chance the Rapper, Dreezy, Katy Perry (single,) Travi$ Scott, Frank Ocean, Taylor Swift film.
Amazon Music Unlimited: Paid user # unknown, 4 countries
October - launches in US with several price tiers and Garth Brooks on streaming services for the first time.
November - Expands to UK, Germany, and Austria.
Their offering is slanted to appeal to the 350M Amazon accounts open in 180 countries, including an estimated 69M Amazon Prime subscribers.
Deezer: 16M users, 6M+ paid users, 180 countries
January - Raises $109M in funding
June - Livestreamed PJ Harvey, Hellfest, and more.
October - partners with Feature.fm to allow artists to pay for play.
August - launches new TV app.
September - $14.99 family plan announced.
Soundcloud (Go): 175M users, paid user # unknown, 7 countries
March - Soundcloud Go launches, offering more music ad-free and offline.
May - launches in UK and Ireland.
June - ‘Suggested Tracks’ launches.
September - launches in Australia, rumors that Spotify might purchase, and 3-month for $0.99 promotion.
Notable Partnerships: Sonos, LANDR, Stagelight.
Tidal: 3M paid users, 52 countries
February - tops the app store after exclusively releasing Kanye West’s The Life of Pablo.
March - Celebrates 3M+ users on one year anniversary
May - Beyoncé’s Lemonade brought 1.2M new subscribers.
October - Livestreamed Robin Hood Foundation benefit event featuring Jay Z, Beyonce, Nicki Minaj, TI, and more. This was one of many events available live.
Notable Exclusives (video or album:) Rihanna, Kanye West, Beyoncé, Lil Wayne, Meek Mill, Bon Jovi, Nick Jonas.
Google Play: Paid user # unknown, 62 countries
March - new desktop player released and “last song you Shazamed” radio station integration.
April - launches podcasts within player, including Radiolab, The Nerdist, and more.
November - redesign launches with a focus on personalized playlists and recommendations.
Notable Partnerships: Trip Advisor, Runtastic, LyricFind, Shazam, YouTube Red (overlapping memberships.)
YouTube Red: Subscriber number unknown, 4 countries, 1B monthly users on YouTube
February - original programming launches.
July - extended promo trial of Google Play + YouTube Red free for four months.
August - YouTube Red support added to the YouTube Kids app.
That being said, it is still estimated that 820M people use YouTube to listen to music for free.
Napster: 3.5M paid users, 34 countries
May - launches Rhapsody VR app.
June - Rhapsody re-brands as Napster.
November - Sprint integrates with subscription option in overall wireless bill and Napster posts 1.6M profit for the past quarter.
December - Announced partnership with iHeartRadio to power their All Access tier.
Pandora re-branded with premium option and launched a new web platform this year. Following their 2015 acquisition of Ticketfly, Rdio, and Next Big Sound, they also teased images of their on-demand streaming platform, Pandora Premium, due to launch in 2017.
Sirius XM’s third quarter revenue climbed to $1.3B from their nearly 29M users.
iHeart Radio announced 90M registered users and launched beta versions of iHeart All Access in partnership with Napster, as well as iHeartRadio Plus. v