YouTube Music has claimed the top spot as the “most adopted music streaming service” in the second quarter of 2024, according to new research from marketing data and analytics company Kantar.
The firm’s latest Entertainment on Demand (EoD) report, published August 14, highlighted a surge in music streaming adoption, boosted by increasing appetite for non-music audio formats like podcasts and audiobooks.
The data was collected from streamers in the UK, US, Australia, Germany, Spain, and France between April and June 2024.
“There’s a significant opportunity to engage older demographics who are less involved but show considerable potential. The challenge lies in convincing these audiences of the value of paid subscriptions,” said Craig Armer, Global Strategic Insight Director at Kantar.
While Kantar’s research indicated that 85% of non-streamers expressed interest in listening to music, concerns about subscription costs remain a major barrier to consumers subscribing.
“With many non-streamers interested in music but hesitant due to costs, services should focus on harnessing recommendations from satisfied users to attract this untapped audience,” added Armer.
In an EoD report in 2023, Kantar attributed YouTube Music’s strength to its focus on music discovery. The firm says this has translated to strong growth in 2024 for both YouTube Music and YouTube Music Premium.
Meanwhile, Spotify also maintained its momentum, achieving a two percentage point increase in penetration year on year, Kantar said.
Kantar’s research revealed that Spotify is the preferred platform for new users aged 55 and older, mainly due to recommendations from friends and family. While older listeners are typically more challenging to engage and tend to favor traditional formats like radio, they often become loyal subscribers when convinced, typically through recommendations and free trials.
“half of Spotify’s premium subscribers are likely to recommend the service to friends and family. This indicates that once a service can persuade non-users that their offer is worth paying for, they can be converted into satisfied subscribers.”
Craig Armer, Kantar
“Satisfaction, as measured through likeliness to recommend the service by users, is continuously high for premium services, seemingly unaffected by price rises over the last year,” said Armer.
“For example, half of Spotify’s premium subscribers are likely to recommend the service to friends and family. This indicates that once a service can persuade non-users that their offer is worth paying for, they can be converted into satisfied subscribers.”
Spotify ended the second quarter with 246 million paying subscribers, adding 7 million Premium subs in Q2 alone, while YouTube Music surpassed the milestone of 100 million paid YouTube Music and Premium subscribers worldwide as of February.
The Kantar study also showed that across all markets studied by the firm, people are signing up for multiple streaming services, particularly in the US.
Music Business Worldwide
