Streaming music market stalls as price hikes loom
After years of rapid expansion, the UK music streaming market is showing signs of stagnation, according to MIDiA Research.
While 32.4 million people, nearly half the UK population, subscribe to services like Spotify and Apple Music, new subscriber growth has slowed significantly. In 2024, growth was only 4%, down from 9% in 2020.
This slowdown is prompting industry analysts to predict price increases. Spotify has already raised its premium plan prices and Amazon Music has followed suit. MIDiA’s managing director, Mark Mulligan, expects further price hikes as companies seek to offset slowed user growth.
Industry figures, like Sony Music’s president of global digital business, Dennis Kooker, argue that price increases are essential for the industry’s sustainability. Kooker dismissed the idea of cheaper, entry-level subscriptions, citing previous failures with mid-price tiers.
Meanwhile, global streaming growth is shifting towards emerging markets, particularly in Africa, India, and China. This shift is expected to influence global music trends, with genres like Afrobeats and Amapiano gaining prominence. The rise of artists from these regions is challenging the UK’s traditional musical dominance. Last year, no British artists appeared in the global top 10 for singles or albums.
The increasing global diversity of music is seen as both a positive and a challenge. While streaming democratizes music, it also creates a crowded marketplace. Industry experts acknowledge the longer, more complex journey for UK artists to achieve mainstream success.
