Music Streaming Industry Analysis: Revenue, Subscribers, and Consumption Trends, Schemes and Mind Maps of Labour Law

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COMPANIES & PRODUCTS

Spotify

Table of Contents

1

• Music streaming revenue worldwide 2005-2023 01 Overview
• Music streaming revenue growth worldwide 2013-2023
• Streaming music subscribers worldwide 2019-2023
• Streaming music revenue in the U.S. by source 2015-2024
• Spotify revenue 2013-2023 02 Financials
• Spotify's segment revenue 2012-2023
• Spotify's operating income 2013-2023
• Spotify's gross profit 2015-2023, by segment
• Spotify's R&D costs 2013-2023
• Spotify: cost of revenue 2012-2023
• Spotify: cost of revenue share 2011-2023
• Spotify's quarterly revenue 2016-2024, by segment
• Spotify's employees 2018-2023, by region
• Largest media companies worldwide 03 Benchmarks & competitors
• Number of active subscribers of online music services Q3
• Subscriber share of music streaming services worldwide Q3
  • Share of WMG revenue generated by Apple and Spotify 2017-2024
  • Tencent Music's annual revenue 2016-2023
  • Pandora's annual revenue 2019-2023
  • Spotify's monthly active users 2015-2024 04 Users
  • Spotify's premium subscribers 2015-2024
  • Spotify's premium ARPU 2015-2023
  • Spotify's global share of premium subscribers Q3 2024, by region
  • Spotify's ad-supported monthly active users 2015-2024
  • Music streaming penetration in the U.S. 2022, by generation 05 Consumption habits
  • Consumers enjoying music or podcast streaming in the U.S. 2023, by age
  • Time spent with audio streaming apps in the background in the U.S. 2023, by gender
  • Podcast listening worldwide 2020-2022, by ethnicity
  • Number of podcast listeners on Spotify & Apple Podcasts U.S.
  • Ad-supported audio time in the U.S. 2024, by format
  • Spotify's most streamed albums 06 Content

Overview

CHAPTER 01

Description: In 2023, streaming revenues reached 19.3 billion U.S. dollars worldwide, the highest ever recorded and more than seven times the figure given for 2015, when music streaming revenue amounted to 2.6 billion. Streaming revenues now account for over 67

percent of total global recorded music revenue. Read more

Note(s): Worldwide; 2005 to 2023

Source(s): IFPI

Revenue in billion U.S. dollars

0.1 0.1 0.^

0.3 0.4^ 0.^

4

Music streaming revenue worldwide from 2005 to 2023 (in billion U.S.

dollars)

Music streaming revenue worldwide 2005-

Description: In the third quarter of 2023, the number of music streaming subscribers worldwide amounted to 713 million, up from 616 million at the end of the second quarter of 2022. Paid music streaming subscriptions have become the norm for many music fans,

and the market has seen consistently impressive increases in subscriber numbers over the last few years. Recent forecasts show however that whilst both subscriber numbers and revenue are expected to continue to rise, growth will slow [...] Read more

Note(s): Worldwide; 2019 to Q3 2023

Source(s): MIDiA Research; Music Business Worldwide

Number of subscribers in millions

H1 2019 Q1 2020 Q1 2021 Q2 2021 Q2 2022 Q3 2023

6

Number of music streaming subscribers worldwide from the 1st half of

2019 to 3rd quarter 2023 (in millions)

Streaming music subscribers worldwide 2019-

Description: Streaming music revenue in the United States has been increasing dramatically on an annual basis for several years now, and in the first half of 2024 amounted to around 6.5 billion U.S. dollars. According to the source, paid subscription revenues were

the industry's main revenue source, accounting for 5.2 billion dollars of the total. Read more

Note(s): United States; H1 2015 to H1 2024

Source(s): RIAA

Revenue in million U.S. dollars

H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024

Paid subscription Ad-supported on-demand Digital and customized radio

7

Streaming music revenue in the United States from 1st half 2015 to 1st

half 2024, by source (in million U.S. dollars)

Streaming music revenue in the U.S. by source 2015-

Description: In 2023, music streaming service Spotify generated a revenue of over 13.2 billion euros, up from 11 billion in the previous year. The majority of Spotify's revenues came from its premium subscribers rather than ad placements. Founded in Stockholm in

2005, the former start-up is now a market leader in the digital music streaming sector, competing alongside established companies such as Apple and their streaming service Apple Music. Read more

Note(s): 2013 to 2023

Source(s): Spotify

Revenue in million euros

9

Spotify's revenue worldwide from 2013 to 2023 (in million euros)

Spotify revenue 2013-

Description: In the most recent reported fiscal year, Spotify generated about 11.5 billion euros in premium revenue and 1681 million in ad-supported revenue. Both figures were the highest reported to date, with premium revenue having grown by more than two

billion euros since 2017. Contributing to Spotify’s success was its strong global subscriber base – as of the first quarter of 2020, the music streaming platform had 100 million subscribers worldwide. Spotify has proved popular in multiple markets [...] Read more

Note(s): Worldwide; 2009 to 2023

Source(s): Spotify

Revenue in million euros

Premium Ad-Supported

10

Spotify's revenues from 2012 to 2023, by segment (in million euros)

Spotify's segment revenue 2012-

Description: Spotify's gross profit worldwide amounted to 3.33 billion euros in 2023, of which the vast majority was generated by its premium segment. The ad-supported segment generated 62 million euros, showing a significant rise compared to the previous year.

Read more

Note(s): Worldwide; 2015 to 2023

Source(s): Spotify

Gross profit in million euros

Premium Ad-Supported

12

Gross profit of Spotify worldwide from 2015 to 2023, by segment (in

million euros)

Spotify's gross profit 2015-2023, by segment

Description: In 2023, global music streaming service Spotify had research and development costs of 1.73 billion euros, up from 1.39 million in the previous year. Costs have been rising for years, and the 2023 figure was more than 22 times higher than the 73 million

recorded in 2013. Read more

Note(s): Worldwide; 2013 to 2023

Source(s): Spotify

R&D costs in million euros

13

Research and development costs of Spotify worldwide from 2013 to 2023

(in million euros)

Spotify's R&D costs 2013-

Description: In 2023, 74 percent of Spotify's revenues went mainly towards royalty payments towards music rightsholders and other fees. Read more

Note(s): Worldwide; 2011 to 2023

Source(s): Spotify; Statista

Share of costs in revenue

74.27% 74.54%^ 74.43%

15

Share of Spotify's cost of revenue from 2011 to 2023

Spotify: cost of revenue share 2011-

Description: Spotify's global revenue in the third quarter of 2024 was mostly derived from the premium business, which amounted to 3.51 billion euros in that period. The decline in ad-supported revenue at the start of 2020 was attributed by the company to the

negative impact of the COVID-19 pandemic. However, ad-supported revenue started to increase again in Q4 2020, and reached 472 million euros in the third quarter of 2024. Read more

Note(s): Worldwide; Q1 2016 to Q3 2024

Source(s): Spotify

Revenue in million euros

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024

Premium Ad-Supported

16

Revenue of Spotify worldwide from 1st quarter 2016 to 3rd quarter 2024,

by segment (in million euros)

Spotify's quarterly revenue 2016-2024, by segment

Benchmarks & competitors

CHAPTER 03

Description: In 2023, the leading media company worldwide based on revenue was Alphabet Inc., with revenue of 284 billion euros. In second place was Meta Platforms Inc, followed by Comcast Corporation, Bytedance, and Walt Disney. Read more

Note(s): Worldwide; 2023

Source(s): Institut für Medien- und Kommunikationspolitik

Alphabet Inc. (Mountain View / USA)

Meta Platforms, Inc. (Facebook) (Palo Alto/ USA)

Comcast Corporation (Philadelphia / USA)

Bytedance (Peking/China)

The Walt Disney Company (Burbank / USA)

Amazon.com, Inc. (Seattle / USA)

Tencent Holdings Ltd. (Shenzen / China)

Apple Inc. (Cupertino / USA)

Charter Communications Inc. (Stanford / USA)

Sony Corporation (Tokyo / JP )

Microsoft Corporation (Redmond / USA)

Warner Bros. Discovery (New York / USA)

Netflix (Los Gatos/ USA)

Paramount Global (New York / USA)

Altice Europe N.V./Altice USA, Inc. (Amsterdam / NL)

Revenues in billion euros

19

Leading media companies worldwide in 2023, by revenue (in billion euros)

Largest media companies worldwide 2023