Tuesday, May 26, 2015

Spotify Still Gaining Steam

Spotify headphones image
It's easy to look at the upcoming streaming music launches from Apple and Google and think that they'll automatically take the lions share of that end of the business, but that underestimates just how important Spotify is the current music industry.

Spotify is now responsible for 10% of the industry's total revenue as of the first quarter of 2015, if you can believe their Director of Economics Will Page. That's a number that few thought would ever be reached, at least from Spotify.

Considering that according to the IFPI, all streaming services combined equaled about 10.2% last year, that means that the company is a juggernaut in the space. Of course, it also means that the 10.2% mark has grown considerably in just 3 months.

Last year subscription music brought in about $1.5 billion, and Spotify accounted for about half that. According to Page, it also accounted for more than 90% of subscription music growth last year.

Granted, these numbers are coming from Spotify, so they're most likely biased, but it does show that the service has a real hold on the market that might be tougher to dislodge than any of the potential upstarts realize, regardless of how deep their pockets might be.

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