Datastream
Ranked: The Top Online Music Services in the U.S. by Monthly Users
The Briefing
- Two-thirds of music listeners in the U.S. used YouTube at least once per month
- 64% of music listeners use multiple music services per month
The Top Online Music Services in the U.S.
The music streaming industry is characterized by fierce competition, with many companies vying for market share.
Companies are competing on multiple fronts, from price and features to advertising and exclusive content, making it a challenging market for companies to succeed in.
YouTube (the standard offering and YouTube Music) has the highest amount of users, attracting around two-thirds of music listeners in the U.S. during a given month. This is largely due to the YouTube’s massive reach and extensive catalog of music.
Here’s a full rundown of the top music streaming services in the U.S. by monthly listeners:
| Rank | Music Service | % of U.S. Music Listeners Who Use Monthly |
|---|---|---|
| #1 | YouTube | 61% |
| #2T | Spotify | 35% |
| #2T | Amazon Music | 35% |
| #4 | Pandora | 23% |
| #5 | SiriusXM | 21% |
| #6 | Apple Music | 19% |
| #7 | iHeartRadio | 15% |
| #8 | SoundCloud | 10% |
| #9 | Audacity | 6% |
| #10T | TuneIn | 5% |
| #10T | Deezer | 5% |
| #10T | Napster | 5% |
| #10T | Tidal | 5% |
Two companies are in the running for second place: Spotify and Amazon Music.
Spotify leads in one important metric: number of paid users. Meanwhile, Amazon Music has a large user base since the service is bundled into Prime—however, recent changes mean that without a premium subscription, shuffled playback is the primary option. Time will tell what impact those changes will have on the service’s market share.
Prices for premium music services are beginning to creep upward. Apple Music and Amazon Music raised their prices, and it’s rumored that Spotify will not be far behind. This move would be significant because, in the U.S., Spotify hasn’t raised its prices in over a decade.
Rising prices and more aggressive promotion of premium subscriptions could be a signal that music streaming services are transitioning from a focus on capturing market share to monetizing existing users.
Where does this data come from?
Source: Activate Technology and Media Outlook 2023 by Activate Consulting
Data note: “Music services” include free and paid services used for listening to music through any format excluding terrestrial radio. “Music listeners” are defined as adults aged 18+ who spend any time listening to music.
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