The music on demand market size is estimated to grow at a CAGR of 13.41% between 2022 and 2027. The music on demand market size is forecast to increase by USD 38,775.66 million, according to Technavio The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market’s competitive landscape and offers information on several market vendors including – Alphabet Inc., Amazon.com Inc., Apple Inc., Aspiro AB, Auracle Sound Ltd., Bennett Coleman and Co. Ltd., Bharti Enterprises Ltd., Canadian Broadcasting Corp., Deezer SA, Hungama Digital Media Entertainment Pvt. Ltd., iHeartMedia Inc., Mixcloud Ltd., Modern Streaming Solutions Pvt. Ltd., Mood Media Corp., Reliance Industries Ltd., Rhapsody International Inc., SoundCloud Global Ltd. and Co. KG, Spotify Technology SA, Tencent Holdings Ltd., and Viant Technology LLC.
Music on Demand Market Insights –
- Vendors: 15+, Including Alphabet Inc., Amazon.com Inc., Apple Inc., Aspiro AB, Auracle Sound Ltd., Bennett Coleman and Co. Ltd., Bharti Enterprises Ltd., Canadian Broadcasting Corp., Deezer SA, Hungama Digital Media Entertainment Pvt. Ltd., iHeartMedia Inc., Mixcloud Ltd., Modern Streaming Solutions Pvt. Ltd., Mood Media Corp., Reliance Industries Ltd., Rhapsody International Inc., SoundCloud Global Ltd. and Co. KG, Spotify Technology SA, Tencent Holdings Ltd., and Viant Technology LLC, among others
- Coverage: Parent market analysis; key drivers, major trends, and challenges; customer and vendor landscape; vendor product insights and recent developments; key vendors; and market positioning of vendors
- Segments: Type (music streaming and radio on demand), End-user (individual users and commercial users), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)
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Key Drivers
The growth in mobile advertisement spending is one of the key factors driving the market growth. Mobile advertising is considered a popular promotion method due to the widespread usage of tablets and smartphones, the expansion of the internet, and the development of numerous mobile apps. Furthermore, service providers design user-friendly mobile applications to cater to their customers’ needs. In addition, with the increasing adoption of mobile devices and subsequent growth in mobile app downloads, songs and albums are now accessible within apps for streaming and downloading. Moreover, to enhance targeted advertising, users are requested to provide their personal information, enabling vendors to retain a larger customer base. However, it is important to balance the benefits of personalized advertising with user privacy concerns, ensuring that data collection and usage are conducted ethically and transparently. Hence, these factors are expected to drive market growth during the forecast period.
Major Trends
The increase in the adoption of cloud services is a major trend in the music-on-demand market. The popularity of mobile advertising in the music industry is attributed to its ability to offer consumers legal access to online music, and it is being widely adopted by music companies because of its enhanced portability. In addition, subscribers can conveniently access digital content stored on remote servers. Major companies such as Apple, Google, and Amazon place significant emphasis on cloud services, utilizing them as remote lockers to store and manage downloaded music tracks for their users. Numerous vendors in the market are now focusing on integrating lyrics and sing-along features into audio files, providing a unique selling proposition (USP) and setting themselves apart from other competitors. Therefore, this trend among vendors is expected to drive market growth during the forecast period.
Significant Challenges
Free music access to users through modified apps will be a significant challenge restricting the market growth. The modified app allows rooted Android and jailbroken iOS devices to access multiple streaming services for free, which is illegal. These cracked apps can be installed on such devices, enabling users to access paid services without making any payments. As a result, the revenue in the music on-demand market, which largely comes from paid-for services, is impacted negatively. This illegal use of cracked apps affects the sales and profit margins of music streaming service providers. Hence, these illegal apps are expected to restrict market growth during the forecast period.
