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Which Music Streaming Service is the Best Right Now?
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Over the past decade or so, the music industry has changed drastically. With the advent of portable MP3 players, music went digital, and it didn’t take long until almost no one was buying physical music. Today, we are seeing the peak of the next wave of digital music: online streaming services.
Major Changes
The concept of music streaming is both simple and ingenious. Using the internet, music fans can stream endless libraries of songs and albums instead of buying and downloading everything they want to listen to. These services generate revenue through advertisements and paid subscriptions and pay record labels and publishers to license the music.
Over the years, music streaming became a crowded and competitive market. By now, it seems like everyone has shifted to streaming and many have already picked their go-to platform. Tech giants like Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have their Apple Music and Google Play Music services, while startups like Spotify and Tidal have also emerged as giants in the industry.
These music streaming services have completely changed how music is consumed, for good and bad. Much more music is accessible around the world, and certain artists and genres have received unprecedented exposure. On the other hand, musicians and publishers have complained that streaming cripples record sales and does not properly pay the creators.
Furthermore, the streaming industry has affected the way music is produced and marketed. An increasing number of musicians have signed deals with streaming services to have their music exclusive to specific platforms for certain periods of time.
With this new relationship between artists and streaming services, the differences between each platform is clearer. Everyone is picking a side in what is becoming a music streaming war. Each of the big services offer a unique experience, but which one is working the best?
The Facts
As of right now, Spotify has the largest user base of any music streaming service. It also boasts a library of over 30 million songs and endless customizable playlists and stations. In June, the company announced that it reached 100 million active users. Spotify is so popular because it has a free listening option that is supported by advertising. According to Music Business Worldwide (MBW), Spotify has about 35 million paid subscribers, which also leads the subscription race, and the service is available in 60 countries.
Spotify’s closest competitor is Apple Music, which told MBW that it has about 15 million paid subscribers. While that is a ways behind Spotify, Apple Music is also relatively new, only launching last summer. The service has spread quickly and is available in 113 countries. Subscribers have access to a library of about 30 million songs, as well as several exclusive online radio stations.
Google Play Music is another service with a free streaming option. Its 35 million song library edges out Apple Music, and a paid subscription includes access to YouTube Red, allowing users unlimited access to all music on the video streaming site. While Alphabet does not release subscription figures, it has been trying to expand with aggressive promotional offers. Users in about 65 countries can access Google Play Music.
The other big player in the industry right now is Tidal, which is owned by rapper Jay Z. Since being acquired by the music mogul in 2015, Tidal has had its up and downs. The company has had three different chief executives in less than one year, and it has struggled to maintain a user base. According to MBW, Tidal has about 4.2 million paid subscribers.
Although it’s not in the same category, we also need to note the existence of Pandora . This internet radio option was one of the first online sources that streamed music for free, and it still sees about 75 million active users. Pandora streams custom radio stations based on users’ interests and favorite artists.
Exclusive Offerings
Whether it’s Apple Music, Spotify, Tidal, or Google Play Music, all of these platforms operate similarly. Users can browse artist pages and playlists and pick songs that are streamed using an internet connection. All of these sites have mobile applications, and typically paid subscriptions allow for a limited amount of downloading or offline playability.
Apple Music sticks out because of its exclusivity deals. Artists like Drake, Taylor Swift, Future, DJ Khaled, and Dr. Dre have released albums that debuted on Apple Music for at least several weeks before hitting other streaming sites. Apple Music also offers deep integration with iTunes, and it’s optimized to work with Apple devices.
Tidal has also made several big exclusivity deals. Its roster includes Kanye West, Beyoncé, Jay Z, and Rihanna. However, as mentioned before, Tidal has struggled internally, and it’s the subject of multiple lawsuits regarding artist royalties.
Spotify, while lacking in the exclusivity department, has several unique features. Its mobile application is widely acclaimed, and Spotify has worked with artists to create tailored playlists and commentary albums.
Google Play Music has a very large library, and YouTube Red brings users a plethora of covers and remixes that other services don’t have. Users can stream YouTube videos without even watching the video itself.
Bottom Line
Taking a step back, we have to look at Spotify and Apple Music as the leaders of the industry. Going forward, Spotify will need to address its cash problem, as its latest filing indicates that the company is $200 million in the red. Also, its latest round of funding, which brought in $1 billion of convertible debt, seems to indicate that the company could be the next big IPO candidate.
With Apple’s brand name, Apple Music was destined to succeed, and its growth rate to this point indicates that it has. There have also been reports that Apple is in talks to acquire Tidal in an effort to further increase its market share and artist roster.
With no subscriber numbers announced, it’s tough to put Google Play Music on this scale, and Tidal’s struggles speak for themselves. Simply put, Spotify and Apple Music have the user base and are making the right moves to remain on top. Personally, I remain a Spotify user and would consider Apple Music if I ever switch to an Apple phone or computer.
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Which Music Streaming Service is the Best Right Now?
Over the past decade or so, the music industry has changed drastically. With the advent of portable MP3 players, music went digital, and it didn’t take long until almost no one was buying physical music. Today, we are seeing the peak of the next wave of digital music: online streaming services.
Major Changes
The concept of music streaming is both simple and ingenious. Using the internet, music fans can stream endless libraries of songs and albums instead of buying and downloading everything they want to listen to. These services generate revenue through advertisements and paid subscriptions and pay record labels and publishers to license the music.
Over the years, music streaming became a crowded and competitive market. By now, it seems like everyone has shifted to streaming and many have already picked their go-to platform. Tech giants like Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have their Apple Music and Google Play Music services, while startups like Spotify and Tidal have also emerged as giants in the industry.
These music streaming services have completely changed how music is consumed, for good and bad. Much more music is accessible around the world, and certain artists and genres have received unprecedented exposure. On the other hand, musicians and publishers have complained that streaming cripples record sales and does not properly pay the creators.
Furthermore, the streaming industry has affected the way music is produced and marketed. An increasing number of musicians have signed deals with streaming services to have their music exclusive to specific platforms for certain periods of time.
With this new relationship between artists and streaming services, the differences between each platform is clearer. Everyone is picking a side in what is becoming a music streaming war. Each of the big services offer a unique experience, but which one is working the best?
The Facts
As of right now, Spotify has the largest user base of any music streaming service. It also boasts a library of over 30 million songs and endless customizable playlists and stations. In June, the company announced that it reached 100 million active users. Spotify is so popular because it has a free listening option that is supported by advertising. According to Music Business Worldwide (MBW), Spotify has about 35 million paid subscribers, which also leads the subscription race, and the service is available in 60 countries.
Spotify’s closest competitor is Apple Music, which told MBW that it has about 15 million paid subscribers. While that is a ways behind Spotify, Apple Music is also relatively new, only launching last summer. The service has spread quickly and is available in 113 countries. Subscribers have access to a library of about 30 million songs, as well as several exclusive online radio stations.
Google Play Music is another service with a free streaming option. Its 35 million song library edges out Apple Music, and a paid subscription includes access to YouTube Red, allowing users unlimited access to all music on the video streaming site. While Alphabet does not release subscription figures, it has been trying to expand with aggressive promotional offers. Users in about 65 countries can access Google Play Music.
The other big player in the industry right now is Tidal, which is owned by rapper Jay Z. Since being acquired by the music mogul in 2015, Tidal has had its up and downs. The company has had three different chief executives in less than one year, and it has struggled to maintain a user base. According to MBW, Tidal has about 4.2 million paid subscribers.
Although it’s not in the same category, we also need to note the existence of Pandora . This internet radio option was one of the first online sources that streamed music for free, and it still sees about 75 million active users. Pandora streams custom radio stations based on users’ interests and favorite artists.
Exclusive Offerings
Whether it’s Apple Music, Spotify, Tidal, or Google Play Music, all of these platforms operate similarly. Users can browse artist pages and playlists and pick songs that are streamed using an internet connection. All of these sites have mobile applications, and typically paid subscriptions allow for a limited amount of downloading or offline playability.
Apple Music sticks out because of its exclusivity deals. Artists like Drake, Taylor Swift, Future, DJ Khaled, and Dr. Dre have released albums that debuted on Apple Music for at least several weeks before hitting other streaming sites. Apple Music also offers deep integration with iTunes, and it’s optimized to work with Apple devices.
Tidal has also made several big exclusivity deals. Its roster includes Kanye West, Beyoncé, Jay Z, and Rihanna. However, as mentioned before, Tidal has struggled internally, and it’s the subject of multiple lawsuits regarding artist royalties.
Spotify, while lacking in the exclusivity department, has several unique features. Its mobile application is widely acclaimed, and Spotify has worked with artists to create tailored playlists and commentary albums.
Google Play Music has a very large library, and YouTube Red brings users a plethora of covers and remixes that other services don’t have. Users can stream YouTube videos without even watching the video itself.
Bottom Line
Taking a step back, we have to look at Spotify and Apple Music as the leaders of the industry. Going forward, Spotify will need to address its cash problem, as its latest filing indicates that the company is $200 million in the red. Also, its latest round of funding, which brought in $1 billion of convertible debt, seems to indicate that the company could be the next big IPO candidate.
With Apple’s brand name, Apple Music was destined to succeed, and its growth rate to this point indicates that it has. There have also been reports that Apple is in talks to acquire Tidal in an effort to further increase its market share and artist roster.
With no subscriber numbers announced, it’s tough to put Google Play Music on this scale, and Tidal’s struggles speak for themselves. Simply put, Spotify and Apple Music have the user base and are making the right moves to remain on top. Personally, I remain a Spotify user and would consider Apple Music if I ever switch to an Apple phone or computer.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>