YouTube Music has emerged as the most adopted service in the second quarter of 2024, however analysts believe there remains growth potential among non-streamers and older demographics.
Kantar’s latest Entertainment on Demand (EoD) data and analysis on the global music streaming landscape reveals a significant rise in music service adoption, increasingly driven by formats like podcasts and audiobooks alongside music
YouTube Music was the #1 most adopted music streaming service in Q2 2024.
85% of people who currently don’t stream music express interest in listening to music, highlighting a significant growth opportunity. The biggest barrier to consumers subscribing is that 42% don’t want to pay a regular fee – this is also reflected in the fact that value for money is the number one driver behind new premium subscriptions across all demographics.
The only exception is Gen Z, where having the same streaming platform their friends use is the main decision-making factor.
Free trials remain the top influencing factor for new premium subscribers. However, earned influences such as recommendations from friends and family are as important as touchpoints the services control.
Craig Armer, Global Strategic Insight Director at Kantar comments: “The music streaming landscape is being reshaped by the growing diversity of audio content, from podcasts to audiobooks. There’s a significant opportunity to engage older demographics who are less involved but show considerable potential.”
In 2023, Kantar EoD highlighted YouTube’s strong influence on music discovery, which remained consistently high across all demographics. This trend has translated into strong growth in 2024 for YouTube Music and YouTube Music Premium, solidifying their position as leaders in the evolving music streaming market. In fact, YouTube Music was the most adopted music service in Q2 2024. However, Spotify also maintained its momentum, achieving a 2-percentage point increase in penetration year-on-year.
Future growth in music streaming will depend on targeting specific age groups and regions, with several markets showing this can be achieved. For instance, while only 51% of Gen Z in Great Britain have a premium subscription, over 80% in Germany do. In the United States, the 55+ age group shows potential, with just one-third currently subscribed to a service.
Kantar’s study found that Spotify is the top choice among new 55+ users, largely due to recommendations from friends and family. Although older listeners are harder to reach and often prefer traditional formats like radio, they can become loyal subscribers once convinced, often through recommendations and free trials.
All markets tracked by Kantar saw a rise in the average number of paid services per person, with the United States leading the increase and Great Britain showing the lowest rate, where the average user subscribes to 1.5 services. The typical US premium consumer subscribes to over one extra service vs their GB counterparts.
