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Which is the biggest music streaming service on the web?

Geoff Riley

18th September 2016

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I'm pretty sure if I ask this question in my economics class, then the answer will be Spotify! Indeed a quick show of hands a few days ago revealed that, not only did most students use Spotify regularly, the majority were now paid-up subscribers, joy to the ears of Spotify founder Daniel Elk!

But perhaps Spotify's near 40 million user base looks small compared to the number of listeners to music available on You Tube? I was really interested to come across this chart from Statista.


You will find more statistics at Statista

According to data released by the International Federation of the Phonographic Industry (IFPI), 82 percent of YouTube users utilize the platform to listen to music.
YouTube pays lower licensing fees to the music industry than services such as Spotify because it classifies itself as a hosting platform rather than a content distributing platform and a platform for aspiring/emerging musicians and bands to promote their music.

The research finds more than seven in 10 internet users aged 16-64 across four continents actively engage with licensed music: they purchase CDs and vinyl, they buy digital downloads, they listen on streaming services, and they watch music videos. In fact, nearly half of all internet users (48 per cent) have paid for music in some form in the last six months.

Key data for Spotify

CompanyValuesStatistic
Spotify's annual revenue€1.95bn Details →
Spotify's revenue from subscriptions€1.74bn Details →
Spotify's revenue per employee€798,906 Details →
Number of Spotify employees1,610 Details →
UsersValuesStatistic
Number of paying Spotify subscribers worldwide40 million Details →
Monthly active users of Spotify's Facebook app39.74m Details →
UsageValuesStatistic
Spotify's total annual streaming hours 4,500m Details →
Spotify's total playlist created1,000m Details →
Most weekly streamed track on Spotify: Closer by The Chainsmokers42.54m Details →

Key data for You Tube

OverviewValuesStatistic
Leading global video property, ranked by share of total videos viewedGoogle Sites (YouTube) Details →
Most popular online video platform in the U.S., by number of total streamsYouTube Details →
ACSI - U.S. customer satisfaction with YouTube77% Details →
UsageValuesStatistic
Average number of unique YouTube users per month in the U.S.167.4m Details →
Hours of video uploaded to YouTube every minute400h Details →
Percentage of U.S. internet users who have a YouTube account58.2% Details →
ChannelsValuesStatistic
Most popular YouTube partner channel in the U.S., ranked by unique visitorsBroadbandTV Details →
Most popular YouTube partner channel in the U.S., ranked by number of videosVEVO Details →
Original ContentValuesStatistic
U.S. users who regularly watch favourite YouTube channels41.6% Details →
YouTube: Amount of U.S. users are not willing to pay for premium content54% Details →
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.