Over the past decade, the US music streaming industry has evolved from a market dominated by digital downloads and physical formats into a leading sector. As app-consumption has surged since 2020, the industry has continued to grow, with revenue increasing at an annualized rate of 5.1% to reach $18.9 billion, including 2.2% growth during 2025. Major platforms such as Spotify and Apple Music have driven this transformation, providing consumers with unparalleled convenience and expansive music catalogs in response to shifting listening habits. Alongside revolutionizing music consumption, providers have navigated a landscape marked by regulatory and economic challenges, prompting agile strategic adaptation. A defining trend has been the emphasis on exclusive content as a competitive differentiator. Platforms are increasingly investing in proprietary offerings, including exclusive podcast series, first-release tracks and high-profile artist partnerships, to build user loyalty and sustain profit. Meanwhile, the emergence of platforms such as TikTok and Twitch has changed how audiences find music. Social music streaming now dominates consumption, with artists now making music specifically designed for these platforms. As these trends have unfolded however, the industry has faced challenges negotiating payout rates with artists, who have complained about unfair practices. This has worked to further limit margin growth over the past five years. Meanwhile, technological innovation remains central, with advanced AI and machine learning tools facilitating highly personalized listening experiences. Enhanced recommendation algorithms deliver curated playlists tailored to individual user profiles, increasing satisfaction and session duration, while promoting new artist discovery. Ongoing algorithm refinement has also supported platform differentiation and sustains user loyalty in a competitive market. Over the next five years, platforms will need to adapt to evolving content demands and intensifying platform rivalry as the market becomes saturated. Steep licensing fees and intricate legal negotiations with major record labels will also continue to pressure operating costs. The proliferation of AI-generated music will introduce unresolved copyright and originality disputes. From 2025 to 2030, annualized industry growth is forecast to moderate to a CAGR of 1.8%, with revenues projected to reach $20.6 billion by 2030.

Streaming music revenue in the United States has been increasing dramatically on an annual basis for several years now, and in the first half of 2024 amounted to around *** billion U.S. dollars. According to the source, paid subscription revenues were the industry's main revenue source, accounting for *** billion dollars of the total. Streaming has overtaken other forms of music consumption Since the introduction of music streaming, the format has taken the music world by storm and is now dominating the industry. In the United States, streaming made up ** percent of the music industry’s revenue, compared to ** percent of physical sales and ***** percent of digital downloads. However, while streaming is still the revenue driver of the music market, growth has significantly slowed down, reaching a growth rate of **** percent in 2022. While this is still significant growth, it is a drop from the streaming revenue growth rate of **** percent in 2021. Spotify is dominating the streaming market With over ** million paid music subscribers in the United States alone, it is no wonder that there are various streaming services competing for market dominance. So far, the most popular streaming service has been Spotify. In 2022, ** percent of respondents stated that they used Spotify most frequently. The Swedish streaming giant generated a revenue of **** million euros in 2022.

In US Music Streaming Market is projected to grow from USD 1.25 billion in 2025 to USD 4.96 billion by 2031, at a CAGR of 25.5%

Music Streaming Market is projected to reach USD 125.70 Billion by 2032, with a 15.10% CAGR from 2023 to 2032.

Snapshot img

Music Streaming Market Size 2025-2029

The music streaming market size is forecast to increase by USD 53.49 billion, at a CAGR of 19% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing preference for the consumption of music on demand. This shift is fueled by the convenience and accessibility that music streaming services offer, allowing users to access a vast library of songs at any time and from anywhere. Furthermore, the introduction of differentiated offerings, such as high-definition audio and personalized recommendations, is further enhancing the user experience and attracting new subscribers. Additionally, advancements in technology and the integration of artificial intelligence and machine learning are enhancing the user experience, making music streaming a popular choice for consumers globally. However, the market faces a notable challenge: the lack of ownership in music streaming. As users increasingly rely on streaming services for their music needs, the question of ownership and control over their music collections becomes increasingly relevant.
This issue may hinder the growth of the market, as some consumers may prefer the tangibility and ownership that traditional music formats provide. To capitalize on market opportunities and navigate these challenges effectively, companies must focus on delivering innovative solutions that address user needs while mitigating potential concerns around ownership and control.

What will be the Size of the Music Streaming Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The market continues to evolve, with dynamic market dynamics shaping its landscape. Streaming platforms are increasingly integrating advanced features to enhance user experience (UX), such as playlist collaboration, wearable device integration, and A/B testing. Recommendation engines and music discovery algorithms cater to user engagement by suggesting personalized playlists based on listening history and preferences. Offline playback, high-resolution audio, and lossless audio are becoming standard offerings, while user interface (UI) designs prioritize ease of use and accessibility. Subscription revenue models dominate the market, with freemium options providing access to a vast music library. API integration enables third-party developers to create innovative applications, while voice control and podcast integration cater to diverse user needs.

Streaming platforms are investing in data analytics to understand user behavior and improve music discovery. Artist promotion and community features foster engagement and loyalty, while smart speaker integration and family sharing expand reach. Music licensing and copyright protection are crucial aspects, ensuring intellectual property rights and fair compensation for artists. Advertising revenue and music distribution are essential revenue streams, with content moderation and data security measures ensuring a safe and enjoyable user experience. Subscription models continue to evolve, offering flexibility and value to consumers. The market's ongoing dynamism underscores the importance of continuous innovation and adaptation to user needs and preferences.

How is this Music Streaming Industry segmented?

The music streaming industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Free
  Paid


End-user

  Individual users
  Commercial users


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The free segment is estimated to witness significant growth during the forecast period. The market is experiencing significant advancements, with collaboration on playlists and integration with wearable devices becoming increasingly popular. A/B testing and user experience (UX) are prioritized to enhance user engagement. Recommendation engines and music discovery algorithms facilitate personalized listening experiences. Offline playback and high-resolution audio cater to user preferences, while subscription revenue models dominate the market. Subscription models offer various tiers, including lossless audio and family sharing. Streaming platforms leverage APIs for third-party integrations, enabling voice control and smart speaker compatibility. Podcast integration and live streaming expand content offerings. Data analytics and artist promotion are essential tools for music distribution and intellectual prop

In 2024, streaming revenues reached **** billion U.S. dollars worldwide, the highest ever recorded and nearly ***** times the figure given for 2015, when music streaming revenue amounted to *** billion. Streaming revenues now account for over ** percent of total global recorded music revenue. The music industry is changing Over the last two decades, the music industry has been heavily impacted by the development of technology and the internet. Physical sales were the main source of revenue in the music industry before digital formats were invented. Even in 2000, U.S. album shipments still amounted to around *** million U.S. dollars before dropping each year until the figure stood at just ** million in 2023. This development is also mirrored in music industry revenue trends. Streaming has dramatically increased its share of U.S. music industry revenue, making up ** percent in 2023, up by almost ** percent from the figure recorded in 2017. Meanwhile, the share of music revenue generated by physical sales has decreased in equal measures, and in 2022 accounted for just ** percent of the total. Streaming platforms With over 700 million paying music subscribers worldwide, streaming platforms have become an essential part of the music industry’s landscape. Swedish streaming giant Spotify has dominated the market for years and commands roughly one third of music streaming subscribers globally. On the other hand, Apple Music, making up **** percent of the market, and Amazon with **** percent, have struggled to keep up with Spotify’s growing audience. In the fourth quarter of 2024, Spotify’s revenue from its premium subscribers hit *** billion euros and the climbing number of ad-supported users brought in an additional *** million euros. By comparison, just seven years earlier in the corresponding quarter of 2016, Spotify’s premium subscriber revenue was *** million euros and its ad-supported revenue just at nearly *** million euros.

Number of Businesses statistics on the Music Streaming Services industry in the US

Music streaming revenue has increased astronomically in the last ten years alone – growing from 1.9 billion U.S. dollars in 2014 to 14.9 billion in 2024. Streaming has become a popular pastime for U.S. music fans and a major source of revenue for the industry, though many traditional consumers lament the resulting decline of physical music formats. Physical CD shipments have dwindled, whilst digital music platforms are flourishing.  The world of digital music   Platforms like Spotify have millions of users worldwide, and millions of tracks are streamed via the service each week. In the U.S., more than 25 percent of adults under the age of 35 are Spotify users, as well as almost 20 percent of adults aged 55 or above. Unsurprisingly, the vast majority of digital music revenue in the United States is derived from subscriptions and streaming, and successful musicians like Drake, Eminem, and Ariana Grande  amass billions of streams each year.  Whilst many artists in the music industry generate most of their income from touring, streaming is also incredibly lucrative, generating millions of dollars in earnings.  

U.S. MUSIC STREAMING SERVICES MARKET valued USD 9.3 Billion in 2024 and is projected to surpass USD 20.9 Billion through 2032

Employment statistics on the Music Streaming Services industry in the US

The most successful music streaming service in the United States was Apple Music as of September, with the most up to date information showing that 49.5 million users accessed the platform each month. Spotify closely followed, with a similarly impressive 47.7 million monthly users.

What is a music streaming service?

Music streaming services provide their users with a database compiled of songs, playlists, albums and videos, where content can be accessed online, downloaded, shared, bookmarked and organized.

The music streaming business is huge, and has sometimes been lauded as the savior of the music industry. The biggest two services are in constant competition for the monopoly of the market. Apple Music was launched in 2015, whereas Spotify has been around since 2008. Other popular streaming services include Deezer, SoundCloud and iHeartRadio.

Do artists make a lot of money from streaming services? 

In short, unfortunately not. Both Apple Music and Spotify have been frequently criticized for the tiny royalty payments they offer artists. Particularly for emerging talent, streaming services are far from a lucrative source of income. Bigger, established stars like Taylor Swift are more likely to regularly make a good amount of money this way. But either way, a track needs to go viral or be streamed several million times before it earns any real cash.

The most used online music services in the United States in 2025 were Spotify, YouTube music, Pandora, and Apple Music, with ** percent of survey respondents having recently listened to Spotify, ** percent to YouTube music, and ** percent to Apple Music and Pandora. iHeartRadio and Amazon Music lagged behind with just **** and ***** percent of study participants having used each service respectively in the last month.

• Mobile Music Streaming Market Scope:

The report on Mobile Music Streaming Market offers in-depth analysis on market trends, drivers, restraints, opportunities etc. Along with qualitative information, this report include the quantitative analysis of various segments in terms of market share, growth, opportunity analysis, market value, etc. for the forecast years. The global mobile music streaming market is segmented on the basis of type, application, and geography. The worldwide market for Mobile Music Streaming Market is expected to grow at a CAGR of roughly x.x% over the next ten years, and will reach US$ XX.X Mn in 2028, from US$ XX.X Mn in 2018, according to a new Market.us (Prudour Research) study.

Mobile Music Streaming Market Scope:

By type, the market is segmented into Free Version Availiable, and No Free Version. By application, the market is divided into User Younger than 18, User Between 18-35, and User Older than 35. Read More

In 2024, music streaming revenues in the U.S. accounted for ** percent of total music revenue, showing incredible growth from the ** percent share streaming made up of music revenues a decade ago. However, music streaming growth slowed down significantly in 2020, with the latest market share remaining relatively steady since then.

The digital music download industry in the United States has witnessed substantial changes in recent years. With the proliferation of streaming services, demand for digital downloads has noticeably declined. Platforms like Spotify, Apple Music and Amazon Music have gained a significant foothold, providing consumers with expansive music libraries through subscription services. This shift signifies a consumer trend toward convenience and cost-effectiveness as the need to purchase individual tracks or albums diminishes. This phenomenon has prompted digital platforms to diversify, seeking new revenue opportunities, such as concert ticket sales and exclusive merchandise offerings, to offset the shrinking download market. Industry revenue has been declining at a CAGR of 15.5% over the past five years and is expected to total $342.5 million in 2025, when revenue will jump by an estimated 10.3%. Over the past five years, the US digital music download industry has faced a challenging landscape. The competition among e-tailers like iTunes or Amazon Music has led to pricing wars that have continuously eroded profit, compelling businesses to aggressively cut prices. This environment has sparked a dynamic in which short-term sales might surge during discounts, yet long-term profitability remains elusive. Moreover, the rise of direct-to-consumer sales has begun to redefine industry norms. Artists who once relied on e-tailers have turned to platforms like Bandcamp, bypassing intermediaries and maximizing revenue. Despite these hurdles, a niche market persists for high-resolution audio formats among audiophiles, offering some stability in premium download sales. Looking ahead, the outlook for digital music downloads in the US suggests weakening as streaming's dominance grows. With consumers increasingly preferring access over ownership, the industry must continually adapt to these shifting preferences. Streaming’s ongoing growth highlights the urgency for download-focused entities to develop alternative strategies, including leveraging exclusive content and bundling experiences with other products to remain relevant. Price sensitivity is anticipated to intensify, urging businesses to emphasize premium offerings that can withstand the downward pressure on standard download prices. As direct artist-to-fan sales gain traction, e-tailers must innovate to maintain a competitive edge in a transforming music ecosystem. Industry revenue is expected to fall at a CAGR of 9.6% to $206.5 billion over the five years to 2030.

The US will grow over 13.62% CAGR by 2030, driven by podcast popularity, smart speaker use, and youth-led mobile streaming trends.

Snapshot img

Recorded Music Market Size 2024-2028

The recorded music market size is forecast to increase by USD 38.87 billion, at a CAGR of 20.6% between 2023 and 2028.

The market is experiencing a significant shift towards on-demand music services, as consumers increasingly prefer the convenience and flexibility of streaming platforms. This trend is driven by the growing availability of high-quality streaming services, which offer vast music libraries and personalized recommendations. However, this market landscape is not without challenges. Illegitimate music downloads and piracy continue to pose a significant threat, undermining revenue growth and intellectual property rights.
To capitalize on the market's opportunities and navigate these challenges effectively, companies must focus on enhancing their offerings through innovative features, competitive pricing, and robust anti-piracy measures. By staying attuned to consumer preferences and addressing these challenges, players in the market can position themselves for long-term success.

What will be the Size of the Recorded Music Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The market continues to evolve, with advancements in technology driving innovation across various sectors. Audio effects processing, such as mastering software and dynamic range compression, have become essential tools in creating high-quality recordings. The ongoing development of audio plugin development and waveform editing tools enable producers to refine their audio production workflow, ensuring optimal sound quality. Moreover, the adoption of MIDI sequencing software and sound design software has expanded creative possibilities, allowing artists to generate unique compositions and sounds. The audio mastering chain, featuring lossless audio codecs and audio editing software, plays a crucial role in ensuring the final product meets industry standards.

The market for digital audio workstations and mixing console automation is growing, with expectations of a 7% annual growth rate. For instance, a leading music production company reported a 15% increase in sales due to the implementation of advanced audio editing software and equalization techniques. Furthermore, the use of spectral analysis tools and audio metadata standards streamlines the music licensing agreement process, making it easier for content creators to monetize their work. The integration of digital audio interfaces and music distribution platforms enables artists to reach broader audiences and maximize their revenue through Music Streaming royalties and sales of virtual instrument plugins.

As audio file formats continue to evolve, digital rights management and audio restoration techniques ensure the protection and preservation of intellectual property. Additionally, advancements in sample rate conversion and live sound reinforcement technology cater to the diverse needs of the music industry. In summary, the market is characterized by continuous innovation and adaptability, with technology playing a pivotal role in shaping the future of audio production and distribution.

How is this Recorded Music Industry segmented?

The recorded music industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Digital
  Physical
  Others


Geography

  North America

    US


  Europe

    France
    Germany
    UK


  APAC

    Japan


  Rest of World (ROW)

By Type Insights

The digital segment is estimated to witness significant growth during the forecast period.

The global music streaming market is experiencing significant growth, with the digital segment accounting for a large portion of this expansion. Streaming services, including ad-supported platforms like Vevo and YouTube, premium subscription services such as Spotify Premium and Apple Music, and streaming radio services like Pandora and SiriusXM, are driving this trend. The number of paid subscribers to music streaming services has risen steadily, with over 520 million subscribers globally in 2022, up from 443 million in 2021. This growth is expected to continue, with the digital music market projected to grow by 15% annually. The production and post-production processes in the music industry are also evolving, with advancements in audio effects processing, mastering software, and dynamic range compression leading to more immersive and harmonious sound quality.

High-resolution audio and lossless audio codecs are becoming increasingly popular, allowing for more detailed and authentic reproduction of music. Audio plugin development, waveform editing tools, midi sequencing s

In 2024, revenue from digital album downloads amounted to 166.7 million U.S. dollars, less than half the figure recorded in 2018. Meanwhile, subscription and streaming revenues have been increasing annually and reached 14.88 billion that same year, making up the vast majority of revenues for the entire music industry. Digital music – additional informationThe increase in digital music revenue, more specifically subscription and streaming services, may be down to the accessibility and availability of digital music. For legal downloads, consumers can pick between services such as Spotify, Apple Music, and Pandora. Of course, there are countless numbers of illegal sites which distribute digital music also. In 2019, approximately 34 percent of global internet users aged 16 to 24 admitted to accessing music through music ripping, the most popular method being copyright infringement.Digital music sales have made a huge impact on the listings of best-selling lists with digital sales either being combined with physical sales or set apart. The list of the top-selling digital songs in the United States in 2020 features artists such as The Weeknd, Tones and I, and Megan Thee Stallion. The title for the top selling digital song goes to ‘Blinding Lights’ by The Weeknd. The song sold over 372 thousand units in the United States from January to July 2020. Nevertheless, the share of the digital music market does not always directly correspond to the value of the digital market. The value of digital music singles downloads in 2024 amounted to 162.4 million U.S. dollars, which marked a drop in value from 678.5 million in 2017. The value of digital album sales also saw a decrease from 668.5 million in 2017 to 166.7 million in 2024.

Overview

Streaming Services Statistics: Streaming services have transformed the entertainment landscape, revolutionizing how people consume content.

The advent of high-speed internet and the proliferation of smart devices have fueled the growth of these platforms, offering a wide array of movies, TV shows, music, and more, at the viewers' convenience.

This introduction provides an overview of key statistics that shed light on the impact, trends, and challenges within the streaming industry.

In the fourth quarter of 2024, ***percent of music streaming subscribers worldwide had a subscription with Spotify, more than ****** the share who were subscribed to the second-ranked Tencent Music. Other services in the list included Apple Music, Amazon, and YouTube. Beyond Spotify – other streaming services Spotify may be the biggest music streaming service in the world, but despite its arguably immense popularity and impressive number of subscribers, it hasn’t achieved global domination just yet. French service Deezer has more than tripled its worldwide subscriber base in the last few years, and although its subscriber numbers don’t come close to Spotify’s, Deezer’s growth goes to show that Spotify hasn’t quite won the hearts of every music streaming fans out there. Another popular streaming service used worldwide is Apple Music, which is in constant competition with Spotify in the United States in particular. Regardless of subscriber numbers though, in the U.S. Spotify is still considered more preferable than Apple Music. Apple is often reluctant to publish their customer numbers, though sources in early 2019 suggested that the service had overtaken Spotify in the U.S. in terms of paid subscribers. That said, Spotify still held the biggest share of overall users, and trends suggest that this will continue.