They’ve also got the most user-friendly embeddable players on the internet, making them the go-to choice for bloggers, who can write about a song and insert a clean, customizable SoundCloud stream into a post. They’ve been focused on building a user base, fostering community, and being an artist-friendly tool where musicians and creators can upload their music directly and share it easily. Up until now, SoundCloud hasn’t attempted to monetize their platform beyond minimal advertisements. The bottom line: the major players in music streaming are all gaining users, but none of them are turning this $9.99/month deal into a profitable business model. Plus competition is more intense than ever before. The bottom line: the major players in music streaming are all gaining users, but none of them are turning this $9.99/month deal into a profitable business model, and it looks like they’ve all got a long way to go. On March 29, TIDAL reported that it has just over three million paid subscribers. At the beginning of 2016, a source revealed to the Financial Times that Apple Music had passed 10 million subscribers. The other streaming competitors have much smaller user bases. The most impressive numbers come after dollar signs: in 2014 Spotify generated over $1.2 billion in revenue, a 45% increase from 2013.Īnd still, Spotify lost money in 2014-over $180 million. On top of that, artist royalties paid per stream have gone down, even as revenue and user base grows. In March, Spotify announced that 30 million of those users were paid subscribers. The company was founded in April of 2006, almost 10 years ago. In January of 2016, leaked stats revealed that Spotify’s overall user base had passed 100 million. Take Spotify for example, the largest music streaming service in existence right now, based on subscribers. Even though millions of people are now regular music streamers, none of the major streaming companies have found a viable business model that yields income and also allows artists to be paid fairly. No matter how much they sugarcoat it, the business surrounding music streaming is unsustainable. Instead of downloading tens of thousands of MP3s, we can now simply pay $9.99 a month on the streaming service of our choice and hear all the music we could possibly want. From the consumer perspective, streaming is an enormous step forward in the way we consume music.
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