{"id":104626,"date":"2025-06-02T13:25:33","date_gmt":"2025-06-02T12:25:33","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=104626"},"modified":"2025-06-02T13:25:36","modified_gmt":"2025-06-02T12:25:36","slug":"whats-next-for-music-streaming-subscribers-know","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/whats-next-for-music-streaming-subscribers-know\/","title":{"rendered":"What’s next for music streaming? Subscribers know"},"content":{"rendered":"\n

Image credit: Dushawn Jovic<\/a><\/em><\/p>\n\n\n\n

Music streaming has taken over the world as the number one way to listen to music, but as new users slow down where do services go from here?<\/span><\/h2>\n\n\n\n

Music streaming saved the music industry. At least, it has helped to boost music revenues higher nearly every year for over 10 years. They saved plummeting music revenues in the face of music piracy.<\/p>\n\n\n\n

\"Infographic:
Image credit: Statista<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n

Last year, global streaming revenue surpassed $20 billion<\/a>, making up 69% of global music revenues. The influence of music streaming services on the modern music industry cannot be understated. But is it reaching a plateau?<\/p>\n\n\n\n

Has music streaming topped out?<\/h3>\n\n\n\n

Some, like Hypebot<\/a>, argue that we are reaching peak streaming, as most of the audiences who would subscribe to music streaming services already are. Mark Mulligan of MIDiA would argue against it, citing the 85 million net new music streaming subscribers in 2024.<\/p>\n\n\n\n

As emerging markets adopt music streaming, there are still new users to be found. But there is a question of where streaming goes once the world’s music lovers are all largely off or on board.<\/p>\n\n\n\n

What’s more, is some emerging markets like China are so largely dominated by local players that it is hard to impossible for other services to break into them. For example, Tencent Music Entertainment<\/a> (TME) has a huge influence in China, with 120 million subscribers.<\/p>\n\n\n\n

But Tencent isn’t just dominating in a large market with very little competition to become a successful music service. Tencent are looking beyond the basic music streaming services to grow their revenues, and it’s working.<\/p>\n\n\n\n

Super tiers are the next step for music streaming services<\/h3>\n\n\n\n

Tencent’s lucrative Q1 2025 was aided by 16.6% in music subscription revenue growth. But there’s more to it than that. Tencent managed to increase their Average Revenue Per Paying User (ARPPU) by 7.5% on last year.<\/p>\n\n\n\n

This should grab the attention of other music streaming services. Adding new users is a surefire way to increase revenue, but how can you capitalise on those same users? Price rises are one way, and streaming prices are rising.<\/p>\n\n\n\n

However, Tencent are doing something more that is allowing users to choose to pay more for their service. And users are <\/strong>choosing to pay more for their subscriptions with Tencent.<\/p>\n\n\n\n

Tencent’s Super VIP subscriptions cost just over three times the price of a basic, premium subscription. That may seem pricey, but TME had over 10 million Super VIP subscribers as of September 2024.<\/p>\n\n\n\n

Tencent’s Super VIP offers its subscribers premium audio quality, special badges, early access to merch and live events, and opportunities to meet artists. All for three times the price, and all to the actual uptake and desire of a large number of users.<\/p>\n\n\n\n

Spotify<\/a> has been teasing a supremium tier<\/a> for over 4 years now. For a variety of reasons, Spotify Supremium still isn’t available. Whilst some services offer high fidelity audio at a higher cost, Western streaming services are largely devoid of a fan package style offering.<\/p>\n\n\n\n

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Spotify Supremium – What is it and when is it coming?<\/a><\/blockquote>