🎧🔊▶What's fuelling the growth in the Audio Streaming Industry ? 🕵️ 👀

Hello,

You are reading Leeds1888 - Issue 47. Every week, we take a look at news, issues, and topics that matter in the world of media and entertainment, and this week we are focusing on the positive news from the Audio Streaming Industry. Spotify has reported a healthy third-quarter profit, and we will examine the factors contributing to the growth in this sector.

Did you check out last week's newsletter on Disney's plans to sell the India Streaming business? If not, you can read it here.

This newsletter will cover the following sections:-

• Top OTT Shows & Movies (don’t miss the new entrants)

• Whats triggering growth in the Audio Streaming Industry?

• Weekly Box Office Figures.

• News Buzz

Top watched OTT Shows this week

Top Releases this week

What's fuelling the growth in the Audio Streaming Industry ?

This week, Spotify reported better-than-expected numbers in terms of its subscriber additions and third-quarter revenues. While video streaming companies like Amazon, Disney, and Netflix are locked in a tight battle to capture a larger share of the ever-growing subscriber base, they often face financial challenges due to higher subscriber acquisition costs and content development expenses. In contrast, music and audio streaming companies have shown healthy growth. Let's delve into the factors contributing to this momentum.

Top Audio Streaming Companies and their growth figures

The Music Streaming Market was valued at USD 29.45 billion in 2021 and is expected to experience substantial growth, reaching USD 103.07 billion by 2030, up from USD 35.53 billion in 2022. This growth is anticipated to be at a CAGR of 14.7% throughout the forecast period from 2023 to 2030.

There has been a substantial increase in the follower base of all the top streaming companies with Spotify leading the pack.

Spotify Financial Report

Spotify experienced a 16% year-on-year growth in its premium subscribers, with the total number reaching 226 million by the end of the third quarter of 2023. The platform reported an active monthly user base of 574 million, adding 23 million users to its previous quarter's total of 551 million. These figures reflect substantial growth and have enabled Spotify to generate $3.6 billion USD in revenue from ad sales, marking an 11 percent increase on a year-on-quarter basis.

The Big Gain - This explosive growth has enabled Spotify to post its first quarterly profit of $32 million USD, compared to the previous year's loss of $241 million USD in the same quarter.

Factors contributing to the growth of Audio/Music Streaming:

Music Concerts: Over the past year, the world has witnessed some of the largest and most prolific worldwide music tours featuring stars like Taylor Swift, Beyonce, Madonna, and many more. This surge in music events has generated tremendous interest among Gen Z and younger audiences, leading to an overall growth in streaming platforms.

Multi-Format Audio Content: Previously, audio streamers primarily featured songs, albums, and independent music on their platforms. However, the rising popularity of Podcasts, Audiobooks, and Audio Stories is attracting a diverse audience, including those who may not be music enthusiasts.

AI in Streaming: AI is revolutionising the audio streaming industry by analysing user content consumption patterns and suggesting content that aligns with their preferences. This includes AI-generated playlists and customised content libraries tailored to each subscriber's listening habits. Not only does this enhance user retention, but it also attracts more subscribers through positive word-of-mouth publicity.

Technical Advancements: Advancements in high-speed internet, improved audio compression, and streaming technology, as well as smart applications, have collectively contributed to an enhanced overall user experience.

Viewpoint

While the video streaming industry grapples with challenges, including resistance from content creators such as writers and actors regarding wages, the use of AI, and intellectual property issues, and competes fiercely with their rivals for content libraries and user acquisition, the audio streaming industry appears to be in a better position. With all the factors mentioned above contributing to the robust growth of the sector, it is projected to reach a $125 billion USD mark by the year 2033. For audio content creators, these streaming platforms offer a promising opportunity to showcase their work, as the barriers to entry and listing are lower compared to video streaming platforms.

Box Office Collection Report

News Buzz!

• Netflix does not want to rush with the online video games business. We did cover this topic in our 40th Issue of Leeds1888. To know the reasons begins the slow pace of Netflix in the gaming business , read here.

• To counter the Apple Vision Pro and Meta’s AR/VR glasses , Chinese firm XReal has launched its own AR/VR headset. As tech giants bet big on this technology, Xreal is launching the glasses in the U.S., U.K. and in some markets in Europe. The XReal Air 2 starts at $399 while the Pro version starts at $449. Read here.

That's all for this week, keep reading and share the newsletter in your network. Also do enrol for the referral programme to win Amazon Vouchers !

Vipul