Thu, 27 Mar 2025

Thu, 27 Mar 2025 As streaming subscriptions stall, are price rises inevitable?

After years of growth, the music streaming market is levelling off, so what will labels do next?
The UK music streaming market has reached a plateau after years of rapid growth, according to new research by MIDiA Research. With 32.4 million people subscribed to services like Spotify and Apple Music, the number of new subscribers has slowed down significantly. In 2020, there were 9% more new subscribers than in 2021, but this year it's only 4%. The industry is now expected to increase prices to compensate for the lack of growth. Spotify recently increased its premium plan price from £10.99 to £11.99 in May, and Amazon Music also raised its prices in January. Industry experts predict that more price hikes are on the way. One option is to introduce a cheaper entry-level subscription, but this idea has been met with skepticism by Sony Music's president of global digital business. The market outside of the UK is growing rapidly, particularly in emerging markets like Africa and India. China now leads the world as the biggest streaming market, with 190 million subscribers. MIDiA Research predicts that the growth of streaming services in these countries will change the way we listen to music, leading to a cultural shift. The global south is already having an impact on the music industry. Sub-Saharan Africa was the fastest-growing music market last year, with revenues surpassing $100 million for the first time. Genres like Afrobeats and Amapiano are gaining popularity worldwide, and African artists like Burna Boy are breaking into the international scene. The UK's historic musical dominance is waning, as British musicians failed to appear in the Top 10 of the world's bestselling singles or albums last year for the first time in two decades. The head of the IFPI says that the democratization of music through streaming has created a crowded space, but also opportunities for new artists to break through.
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