Competition in the music streaming space has intensified in recent years, with Apple, Amazon, and Google all launching their own services to compete against upstarts like Spotify.
One simple reason for this is the on-demand music streaming market’s mind-boggling pace of growth. According to BuzzAngle, the number of on-demand audio consumption jumped a whopping 82.6% year-over-year in 2016 to reach 250 billion total streams. That’s a much bigger increase than the total number of on-demand video streams, which went up just 7.5% year-over-year.
What’s perhaps more interesting is that the streaming growth came at the expense of album and song sales, which each dropped 15% and 24% from the previous year, respectively.
Don’t expect a slow down any time soon: Streaming will grow to 50% of the global music market by mid-2019 and to 80% in 2025, according to Macquarie.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.