The increasing number of both Internet and smartphone users has led to growth in music streaming services, as well. In addition, increasing the production of wearables and smart speakers, enabling synchronization with music streaming apps, is contributing to the demand for such mobile apps. According to the ResearchandMarkets report, the worldwide global music streaming platform projects a CAGR of 16% from 2019 to 2023.
In a separate report from Statista, according to a report from Statista via zacks.com, the music streaming market is projected to earn roughly $11.1 billion in revenue this year. Relatively, tech firms, including Amazon, Apple, Alphabet's Google, and conventional media firms such as Sirius XM or Siri, have all taken notice of the prospects, and are attempting to strengthen their presence in the space.
Amazon has made every initiative to strengthen its presence in the worldwide music streaming service, which Spotify presently dominates, through the strengthening of Amazon Music service. The company's release of the ad-supported free version of its music streaming service on Android, Fire TV, and iPhone, is as the proof to the same. Remarkably, formerly, Amazon Music was offered for free only on the Echo speakers.
With this initiative, Amazon can already reach the audience, who are not too keen about paying monthly subscription fees to listen to their favorite songs. As a result, Amazon can already gain further in the music streaming market. Moreover, this free music from Amazon is likely to offer tough competition to Apple, Spotify, Sirius XM, and Google, which, as described in the tech world, are all leaving "no stone unturned to capitalize on the opportunities."
Competitors in Trouble?
Following Amazon Music's launch, reports have it that "shares of Spotify plunged shares of Spotify fell 4.9% early this week." Notably, Spotify, which is said to be riding on strong promotions in Canada and the United States, offers free music service along with its premium (paid) service. In addition, Amazon is benefiting from its music streaming service's synchronization with the smart speakers of Google.
Additionally, the company is getting a lot of benefits from the synchronization of its music streaming service with Google intelligent speakers. Reportedly, Spotify currently has 248 million users every month, and this includes subscribers of both the paid and free services. Moreover, the user base is projected to be from 255 to 270 million in the present quarter. Apple, for its part, has gained steam in the market along with its expanding Apple Music subscriber base, currently with over 60 million paying subscribers.