While album sales continue to drop, music streaming is only growing. Millennials and teens are fuelling the growth of existing services that provide them the curated and varied music collections they want, when they want them, and soon there will be even more competitors vying for their attention.
Millennials are at the forefront of the mobile revolution, and it’s that revolution that has fuelled the biggest shift in music consumption: streaming. At this point, streaming is not news, but the industry continues to grow. On demand streaming was up 54% in 2014, while album sales continued to decline. A 2014 Ypulse monthly survey found that 69% of 13-32-year-olds say they use Pandora, 40% say they use Spotify, and 20% use iHeartRadio. For Millennials, who want to listen to whatever music they want, wherever they are, without the burden of ownership, streaming is the solution to their music needs. As was made clear at the Grammys this weekend, streaming is not the solution the music industry was hoping for. Streaming is disruptive. Issues with artist compensation and the perceived threat that streaming poses to album sales makes it a contentious space. But at the same time Millennials and teens continue to bolster the growth of streaming services, and our data indicates that many are using more than one streaming source. Just as the online video world is fragmenting as new players vie for young consumers’ attention, the streaming world is in for some shakeups this year. Major players and smaller innovators alike are jumping into the streaming game to challenge current favorites. Here are three that could heat up the competition for Millennials’ ears:
77% of 13-32-year-olds tell us that they listen to music on YouTube, more than those who use Pandora or even iTunes, but YouTube…