New study predicts the rise of music streaming services

Juniper Research recently completed a new study that projects revenues from ad-based music streaming services will exceed $1 billion by 2017. According to researcher Joe Crabtree, “With convenience, accessibility and curation having become the defining elements of the music landscape, the potential of the streaming industry will revolve around the levels of which providers can convert free customers to paying customers.”

Juniper noted in the study that many platforms are moving away from a “freemium” model and instead are using feature-restricted services as a way to entice consumers to upgrade to paid subscriptions. Despite these changes to the use of the freemium model, the growth of users migrating to streaming services will drive revenue growth.

Juniper Research also found that the music industry will need to adjust to this new streaming service landscape as downloaded music starts to decline in popularity. Juniper noted that in 2014 digital downloads of music decline for the first time. That trend is expected to continue and by 2018 subscription streaming service revenues are expected to exceed revenues from downloaded music.

For streaming service platforms, Juniper says a key to success will be differentiation in how they present music discovery to end users.

source: Juniper Research

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