Are you looking for top Spotify competitors in 2021? Don’t worry, we got you covered in this article. Spotify was launched in 2006 as a Swedish audio streaming and media services company. It was started as a start-up in response to the increasing piracy problems of the music industry. With 130 million subscribers and 286 million monthly operators worldwide, the company quickly grew to a service (MAU). With 35% of the global streaming paid subscription market, it is the most popular streaming service.
It brought in $ 7.5 billion in sales in 2019 thanks to its 4,165 employees. The corporation keeps 30% of total earnings and divides the remainder among music deals, artist payments, and licensing. Users can access music and podcasts from any of their linked devices at any time. Spotify has almost 50 million songs in its catalog.
Subscribers can create their own lists of items such as party, relaxation, and footing. Users can also view their friends’ collections by scrolling through the list of artists and celebrities.
- 1 How Does Music Streaming Services Earn Revenue?
- 2 Biggest Spotify Competitors 2021
- 3 Top 16 Spotify Competitors Everyone Should Try
- 4 Conclusion
How Does Music Streaming Services Earn Revenue?
First of all, we need to know where the music streaming company earns its revenues and has become one of the biggest industries. So, basically, they earn their revenue via two main sources:
1. Premium Subscription
The primary revenue source for Spotify is premium subscriptions, 91% of its overall revenue. It features two plans in the U.S.: a premium version of $9.99, which offers offline listening without commercials and on-demand mobile phone access. Finally, the third plan includes six accounts for family members living at the same address.
Spotify earns 9 percent of its revenue through advertisement. Users can join up for a free account that allows them to watch limitless ad-supported streaming. Brands can advertise in a variety of formats, including branded moments, sponsored playlists and sessions, video takeovers everywhere, homepage takeovers, audio, leaderboards, and branded playlists.
Biggest Spotify Competitors 2021
Here’s a list of some of the biggest Spotify competitors in 2021.
1. Apple Music
Apple Music is an Apple Inc. music and video streaming service that enables clients to stream content to or save it for later listening to their connected devices. The platform, which was launched in 2015, is part of Steve Jobs’ 1977 Service Business.
The corporation employs 137,000 employees and is the most valuable brand in the world. Its yearly revenue is around $ 260.1 billion, with the service division accounting for $46.2 billion of that total. Spotify’s major opponent is Apple Music, which has a 19% market share.
2. Amazon Music
Amazon Music, a music streaming service from the American eCommerce company Amazon, was introduced in 2007 as an open beta edition under the brand Amazon MP3.
A year later, it was the first online music store. It currently has over 55 million subscribers and is the fastest-growing music streaming service. It has more than 55 million users and accounts for 15% of the global market.
With these data, it has surpassed Spotify as the second-largest rival, trailing only Apple Music. Amazon Music is part of Amazon’s subscription business, which accounts for around 6% of the company’s overall income.
YouTube Music is a music streaming platform developed by YouTube, Google’s free video platform that debuted in 2015. It provides music streaming and allows users to browse through songs and videos from various genres, making playlists and personalized suggestions. YouTube employs 5,000 people and earns $15.1 billion in revenue per year.
YouTube Music has 20 million subscribers as part of the YouTube Premium service. It is Spotify’s fourth competitor, accounting for 6% of the global market. This service is part of YouTube’s subscription revenue stream, in which Google has been investing more in recent years.
In 2010, Google introduced Google Play Music, with VP Vic Gundotra presenting an Android app. Alphabet owns the internet powerhouse, which employs 119,000 people and generates $160.7 billion in annual revenue. Although the company has declared plans in 2019 to move music platform users to YouTube Music, that has not yet happened.
Users can access Google Play Music via browsers, desktop computers, and Android smartphones. It is also accessible on a variety of mobile operating systems that support Adobe Flash. The platform provides free storage of up to 50,000 songs and can be synced with the cloud and accessible from any location. It has 15 million paying customers and is available in 63 countries.
Tim Westergren and Jon Kraft founded Pandora in 2000, and the SiriusXM satellite radio network purchased it in 2018 for $3,500 million. This merger created one of the world’s largest audio entertainment conglomerates. Pandora has 63.5 million monthly active members.
The Music Genome Project was recommended by the platform, which collects and describes the substance of a song based on its melody, harmony, rhythm, and instrumentation. With almost 2,000 people, the company generated annual revenues of $7.8 billion in 2019.
Sound Cloud is a social networking network that was developed in Germany in 2007 by sound producer Alex Ljung and artist Eric Wahlforss. It bought the distribution platform Repost Red in 2019 and then invested $ 75 million in Sirius XM USA the following year. The program is geared at musicians who are looking for ways to get their music out there. They can display their completed songs, and users can leave comments on specific parts of the audio.
There are both free and paid Sound Cloud subscriptions available. It is available in Australia, the United States, the United Kingdom, France, New Zealand, Canada, Germany, the Netherlands, Italy, Spain, Belgium, Switzerland, and Portugal, with over 175 million monthly users.
7. Deezer Music
Deezer Music is a music streaming service launched in 2007 by Daniel Marhely and Jonathan Benassaya in Paris, France. Users who sign up for the service can make their own playlists and stream an infinite amount of music. It also has a private messaging system for communicating with other members of the same community. They can also use the blog to discuss songs, ideas, and recommendations.
Deezer has expanded into new markets, now operating in 185 countries. In 2016, the company attracted numerous investors, the largest of which is Access Industries, the parent company of Warner Music. The site has 14 million monthly active users (MAU), half of whom are paid members, mostly in France. It made $400 million in 2019 with 600 employees.
Napster is a music file delivery service founded by Shawn Fanning and Sean Parker in the United States in 1999.
It was the first peer-to-peer (P2P) music exchange system. Throughout 2011, it merged with Rhapsody to establish a new premium service in the rest of America and Europe.
It is now working with Movistar to launch a streaming service in Latin America that will compete with Claro Musica and Spotify. It presently has 3 million paying subscribers and a catalog of 42 million tracks.
With 200 people, the service is available in 33 countries and generates yearly revenues of $ 106.3 million.
In 2014, Aspiro, a Norwegian company, created Tidal, a music subscription service. A year later, Shawn Carter’s Project Panther purchased the company. The program, which offers high-resolution music and movies, requires a price. It is not available for free download.
The platform pays a considerable portion of royalties to the artists. Tidal offers several subscription tiers, including Premium and HiFi. It features work from a variety of artists, including those who are quite new. It is offered in 54 countries, employs 305 people, and earns $ 147.6 million in yearly sales.
Ethan Diamond, Shawn Grunberger, Joe Holt, and Neal Tucker founded Bandcamp in the United States. Bandcamp began its service in 2008 and has since grown to over 5 million songs and 600,000 albums from 183 countries.
The online music store provides a platform for emerging independent musicians to promote themselves, with free access to establish their own website, sell their works, set prices, and allow web-based listening. Bandcamp takes 15% of sales and begins charging 10% once artists achieve $ 5,000 in revenue. The corporation has a revenue of $ 7 million.
Top 16 Spotify Competitors Everyone Should Try
Spotify has been a music streaming giant for years, but other streaming services are giving Spotify tough competition. Here’s a list of 16 Spotify competitors.
- Apple Music
- Amazon Music
- YouTube Music
- Google Play Music
- Sound Cloud
- Deezer Music
- Jio Saavn
- 8 Tracks
So here is the complete list of the top Spotify competitors as well as alternatives who are giving Spotify a run for the money. Hope you enjoyed reading the article. Let us know who do you think has the potential to surpass Spotify, in the comment section down below.