Streaming is the most popular way to consume music. Since 2016, it has become a bigger source of revenue than downloads, CDs and vinyl combined. But just how much is the streaming market really worth?
According to a 2021 estimate, about $29.5 billion. This includes revenue from a number of different music streaming platforms – the biggest one being Spotify, which had a 31% market share in 2021.
Music streaming platforms typically make their money from subscription fees and advertising. Users typically choose between using a free service paid for by ads, or they pay a subscription to listen to music without ads. Subscription fees and advertising fees vary from platform to platform. Most of this revenue goes towards paying the artists on these platforms, however the streaming services themselves still take a sizable cut.
Just how much is each streaming platform making? Billions in many cases. In 2021, Spotify’s revenue totalled $11.4 billion. SiriusXM meanwhile took in $6.6 billion, while Apple Music generated $5 billion. These figures are likely to go up in the future as more people around the world embrace streaming.
For those who are curious, the infographic below provides more data on each platform’s market share and revenue, and where each platform ranks.