Global Cloud Music Services Market Outlook to 2023 by Service Type, Platform and Geography - ResearchAndMarkets.com

The global cloud music services market is expected to register a CAGR of 10.56% from 2018 to 2023.

The report’s scope is limited to the types of services offered by major players, which involve download, subscription, and ad-based streaming. On the other hand, the platforms considered in the scope of the report include smartphones, laptops, tablets, cars, and cloud-enabled stereo systems.

Article Summary show

Back Office Outsourcing Services Market growing Rapidly with top key Drivers: Accenture, Aon Hewitt, Capgemini, Xerox Corporation Infosys BPO Ltd., Syntel, TCS Limited, IBM Corporation, Wipro Limited, Goodyear

Post Office Internet Banking Facility: How To Register, Services Offered, Key Details

Cloud music services are primarily used to increase access to music by overcoming limitations imposed by the device storing capacity or lack of ownership. Streaming, subscription, and other cloud services provide listeners with service agreements to rent music out for a certain fee or under certain conditions.

The increasing integration of analytics in the music industry is expected to be a key trend gaining traction in the cloud music services market. The backing from curators, editors, and data analytics systems enables record companies to provide customers with customized music experiences. Data analytics systems in the music industry allow streaming service providers to identify customers’ music preferences. This allows the service providers to make intelligent/smart music recommendations for their customers, increasing the hours a user spends listening to music.

Increasing Penetration of Smartphones & Tablets drives the Market for Cloud Music Services

In 2016, the number of smartphones sold to consumers was around 1.5 billion, a significant increase from the 680 million units sold in 2012. Thus, over 28% of the global population owned a smart device in 2016, and this is expected to increase to 37% by 2020. With the growing number of smartphones and tablets, music listener’s behavior is changing.

Smartphones give listeners more portability; users can listen to any music anytime and anywhere. This is expected to drive the demand for cloud music owing to unlimited storage, accessibility, connectivity, and affordability. As smartphones have more scope for data connectivity than laptops (laptops can be connected only through a wired network or Wi-Fi), they support better accessibility to the need for on-demand cloud music services.

Ad-based Streaming Services has Been Growing as a Service Type

Advertisement-based music streaming generated about USD 782 million worth of revenue in 2015, and the figure is expected to increase to around USD 1 billion by the end of 2017. This growth is attributed to an accelerating shift in consumer behavior, with listeners increasingly choosing streaming over downloading and several new players entering the world of music streaming. Ad-based streaming services are expected to receive backing from music firms, as the services have helped the music industry battle piracy.

Apps like Spotify and Apple Music almost swiped out Napster and LimeWire from the market through complete convenience. Customers have to listen to a couple of ads, and they can get most of the songs at a faster rate and in better quality. In 2015, Spotify’s advertising revenue grew by 380% in the first quarter compared to last year’s period. The growing numbers of users augmented the increase in the revenue toward the end of last year, which brought its user base to around 60 million, 45 million of whom were on the freemium services that include ads.

Asia-Pacific has High Growth Potential

In APAC, over 50% of digital music revenue is generated from music streaming. This growth has been reinforced by the advent of a generation of dirty, more localized, and personalized curation. Moreover, connectivity, a prerequisite for digital music consumption in general and cloud music services in particular, has improved significantly.

This results from the mobile network operators’ big investment in infrastructure (about USD 600 billion), which is expected to provide about 90% 3G coverage and about 70% 4G network coverage for Asian consumers by 2020. About 50% of the revenue from Asian music streaming in 2015 was generated from the population group under 35 years of age. Nearly half the media consumption by the millennial population is digital. Thus, a huge youth population provides the region’s cloud music service provider an opportunity.

Notable Developments in the Market

March 2018—NetEase Cloud Music entered into a cross-licensing agreement with AllMusic. These services provide custom recommendations that enable users to discover and share music.
October 2017—Apple and GE p need to deliver powerful industrial apps designed for predictive data and analytics from Predix, GE’s industrial Internet of Things (IoT) platform, to iPhone and iPad.
Key Topics Covered

1. Introduction

1.1 Key Study Deliverables

1.2 Market Definition

1.3 Study Assumptions

2. Research Methodology

3. Executive Summary

4. Market Insights

4.1 Market Overview

4.2 Industry Attractiveness – Porter’s Five Forces Analysis

5. Market Dynamics

5.1 Market drivers

5.1.1 Increasing Penetration of Smartphones and Tablets