Apple Music commands a fifth of UK music streaming market

The strange concept of a pie chart with ranges for each slice explains how 20+30+60=100% 🤣

AppleInsider said:

A new UK government report claims that Spotify has about 60% of the country's music streaming market, with Amazon holding up to 30%, and Apple Music in third place at around 20%.

An independent study recently claimed that financial hardship has meant one million UK subscribers cancelling their streaming music accounts. Now a new UK government study makes no reference to this, but instead attempts to examine the overall music market in the country.

Presented as a "Research and analysis" of the industry by the Competition and Markets Authority (CMA), the full report is a summary with only rather broad figures. It says that the UK music streaming market comprises:

1. Spotify 50% to 60%


2. Amazon 20% to 30%


3. Apple Music 10% to 20%


4. SoundCloud 5% to 10%


5. YouTube Music, Deezer and Tidal each on 0% to 5%

The data comes from the CMA's own analysis of data apparently from the music streaming services themselves. It's a percentage share of UK monthly active users recorded in December 2021, though there is no explanation of why it is presented in such wide ranges.

Source: CMA

CMA also does not discuss the specific prices of music streaming services. However, it does note that overall "the monthly price of music streaming services is either free (ad-funded) or is falling in real terms," as prices have not increased with inflation.

It also shows what it describes as "a rising trend for both average earnings and average royalty rates" for musicians in the UK. The "average UK artist earned (GBP) 2,000 from streaming from majors in 2021 with an average royalty rate of around 26%."

Given the rising earnings, the effectively lowering cost of the services, plus the competition in the market, the CMA proposes no further investigation. It is, however, consulting both on the current findings and whether it should continue. Responses are due by August 19, 2022, via the CMA site.

Read on AppleInsider

What's not clearly stated is that these numbers includes all music streaming "subscribers", including the ones streaming for free. Spotify has over 450M subscribers but only about 180M are paying subscribers. Which explains their 50-60% marketshare. Amazon also have a lot of free "subscribers" with a limited free music streaming service for Prime members. Apple have no free streaming service. 

If one were to leave out free music streaming and only include paid subscriptions, Spotify would not come close to having 50% of the UK market, even if the Europe is Spotify biggest market. And Apple and Amazon would have about the same percent marketshare. 

Here's a little more detail article

https://techcrunch.com/2022/07/26/u-k-antitrust-authority-sees-no-competition-concerns-in-music-streaming-industry/ 

I bet if it was Apple that had 50-60% of the UK music streaming market, the UK government would find Apple being anti-competitive and will try to do something about it. But there's nothing anti-competitive about Spotify owning 50-60% of the music streaming market. And why not? Repeat after me ....... because Spotify is NOT a "gatekeeper". (Even though the UK no longer have to abide by any EU rulings.) 

But it seems this research came about because music artists in the UK were complaining about their low rate of compensation for streamed music and not because of any complaint by the usual suspect .... the CEO of Spotify. 

Just quit Apple Music after a year? not going back streaming, reinforces the rental you own nothing mentally, owned the original iPod and have about 17,000 songs, bought all of them, except for about 1,500 songs?

If you have old CD’s, Laser discs, or DVD’s keep them your going to need them in the future.