The cloud has completely changed the way that consumers listen to music. Virtually everyone with a mobile device has access to a streaming service, meaning consumers are no longer buying albums and individual songs like they once used to. Digital music is the norm, which has changed the music industry entirely.
Mobile phones have become the most popular device for listening to music via the cloud, with services such as Apple Music, Spotify, and Pandora leading the charge in cloud-based music services. Streaming revenues have increased significantly in recent years, shifting the focus away from physical albums and toward digital streaming on various platforms.
With millions of users accessing paid music subscriptions each year, revenues are only set to increase in the near future. In fact, 2017 saw streaming revenues reach nearly $1.5 billion, a $500 million increase over 2016.
With the success of streaming leaders including Apple Music and Spotify, other web giants are now getting involved in the streaming business. YouTube recently launched a music subscription service that is set to compete with other major streaming services, giving streamers even more choice when it comes to their music.
The widespread increased usage of smartphones and other mobile devices is the primary reason for the sudden increase in streaming revenues. The sheer number of mobile devices available around the world has skyrocketed, connecting users that previously did not have access to a mobile device to music through paid streaming services.
Streaming services are now partnering with mobile device manufacturers and mobile service providers to generate new growth and revenues. While the United States is still the leader in streaming revenue generation, other technology-centered countries such as China are not far behind.
The competitive cloud streaming industry has kept subscription prices low, allowing users to shop around various services without risking much of a price increase.