Shifts in Music Industry Revenue Model Leading to Growth in Global Music on Demand Market

LONDON - June 11, 2014 - PRLog -- Access to new music, anytime, anywhere is boosting the popularity of services like Rdio and Spotify and driving overall growth in the Global Music on Demand Market, according to TechNavio.

The independent tech-focused global research firm has released their market research report on the topic, which shows that the market is growing at a CAGR of 20.64 percent from 2013-2018.

Subscription services are currently witnessing an increasing number of subscribers for digital music streaming services, thanks to a variety of choices for consumers and increased integration with social media.

“The integration of music streaming applications with social media platforms such as Facebook has increased music subscriptions significantly around the world,” says Faisal Ghaus, Vice President of TechNavio.

Additionally, the freemium business model is aimed at migrating free users to premium paid services while ensuring sustainability. Hence, the growing number of premium subscribers is helping the Global Music on Demand Market to gain momentum.

Major music recording firms such as Universal Music Group (UMG), Warner Music Group, and Sony Music Entertainment have undertaken some strategic mergers and acquisitions to revitalize their market presence in this segment.

Recently, UMG partnered with the social crowd-sourcing platform, Talenthouse, to create a variety of campaigns for its roster of chart-topping artists. The company has also partnered with Free All Music, a digital music download service that provides customers with free and legal downloads from UMG's wide-ranging digital catalogue. This upsurge in market consolidation activities is increasing global music firms' market presence and reach, and will have positive effects on the market size over the projected period, says Ghaus.

To determine these market scenarios over the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.

If you are interested in more information on this topic and our upcoming research on the Global Music on Demand Market (http://www.technavio.com/report/global-music-on-demand-ma...) please send an e-mail to media@TechNavio.com.

About TechNavio

TechNavio is a leading global technology research and advisory company. Founded in 2003, TechNavio has about 200 analysts globally and develops over 2000 pieces of research every year. We cover more than 500 technologies across 80 countries.

We focus on emerging trends that can shape a market, and model these trends using a mix of quantitative and qualitative tools in our proprietary research methodologies in order to build forecasts across market segments and geographies. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a constantly changing technology market scenario.

TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Our analysts obtain the information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

Our large and growing base of happy customers include technology suppliers, end users, consulting companies, investment firms, research institutes and media worldwide.

Follow us on Twitter @TechNavio
Like us on Facebook
Follow us on LinkedIn
Connect with us on Google+