It's easy to see why Amazon and Pandora want to take on Spotify and Apple

It looks like the streaming music world is about to get even more crowded: Recent reports say that both Pandora and Amazon are close to launching new streaming services built to compete with the likes of Spotify and Apple Music.

Given that Pandora and Amazon already have music streaming platforms, that might sound weird. But as this chart from Statista shows, there’s good reason for them to change things up. According to data from the IFPI, the amount of annual revenue driven by music streaming subscriptions has grown to at least $2.3 billion in recent years, while the amount generated by ad-supported streaming has stayed relatively stagnant, now hovering around $600 million.

That’s a big deal when Pandora’s current paid tier lacks on-demand music, and when Amazon’s current paid tier is decidedly less featured than what others putting out. It might not make picking a service any easier for you, but as more and more people prove willing to subscribe, it seems like anyone with a stake in music streaming will have to follow the Spotify model.

Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.

NOW WATCH: This new update in ‘Pok√©mon GO’ will change how you play the game

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.