USA poised to overtake South Korea in mobile streamed music

Rating: Juniper Research says impending iRadio launch will drive growth

The most significant growth in mobile music streaming has come in the USA, which is poised to overtake South Korea this year as the leading market for mobile streamed music services. That’s according to a recent report from Juniper Research, ‘ Mobile Music: Market Prospects 2013-2017‘. That trend is likely to accelerate as Apple is poised to launch its iRadio services. OTT [Over-The-Top] players like Apple are also set to challenge existing service leaders – such as Pandora and Spotify, for supremacy in the streamed music space.

“Apple’s forthcoming iRadio service is likely to bring significant pressure to bear on the existing players -and prompt competing offerings from the other major OTT companies,” observes the report’s author Dr Windsor Holden.

He continued, “Historically, companies such as Apple, Google and Amazon have primarily focused on cloud music from a storage perspective; as a remote locker for downloaded tracks.”

Now they are eying mobile streamed music services where global revenues from are expected to rise by more than 40 per cent to $1.7 billion, the report from Juniper Research predicts.

It also forecasts that for the first time, these revenues will overtake those generated by full-track downloads to mobile devices.

The report also observes that growth in premium service adoption was increasingly being driven by operator partnerships with service providers.

In Europe, several operators have seen an uplift in spend amongst the mobile users, notably TeliaSonera in Sweden, which bundles Spotify with TV, mobile and fixed line services.

Furthermore, such services are also gaining traction in Germany, where O2 offers simfy and T-Mobile has recently introduced Spotify.

Nonetheless, the report cautions that monetisation of streamed music services is still being severely impacted by digital piracy.

Even in markets which have imposed blocking orders on leading torrent sites, the overall rate of torrent traffic has continued to increase, Juniper found.

A whitepaper entitled, ‘Mobile Music – Full Stream Ahead’ is available for download from Juniper here.

About Hans Cett

Hans Cett is an established freelance author and consultant specialising in the mobile communications industry. He also writes for Countdown2MWC -
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