Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now


Despite Shifts in Freemium Model, Ad-Based Music Streaming to Grow

Juniper: “The potential of the streaming industry will revolve around the levels of which providers can convert free customers to paying customers”

The music download market is now in decline, while ad-based music streaming will continue to grow, even with fewer �freemium� services available. So says Juniper Research.

�Revenue generated through ad-based music streaming is set to exceed $1 billion by 2017, up from $782 million in 2015 �,� the UK-based company wrote in a summary of its latest report on digital music. �Many key players are opting to exclude full-featured freemium services, with offerings restricted to, at most, basic radio style features, as exemplified by Apple Music and Amazon Prime Music.� Still, it said, ad-based revenues are expected to see �strong growth� as consumers migrate to streaming.

It said that although freemium services will continue to draw more people, �the model will enjoy a greater influence in funneling consumers towards the more profitable subscription options. Hence, with the drive of ad-based services coupled with the growing impact of key players, streaming is expected to be brought to the forefront of the market with a significant global growth in user numbers.�

It said Apple Music, with its 11 million trial subscribers, will act as a �major catalyst� in driving expansion of subscription streaming.

Meanwhile, subscription streaming revenues will overtake download revenues in 2018, Juniper predicts; the digital music industry will �continue consistent growth despite the declining download market�; and new investment in music discovery is �rapidly gaining importance in provider differentiation and equally gaining traction in promoting the appeal of digital music.�