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August 05, 2013

Spotify Set to Be a Leader in Music Streaming

By Oliver VanDervoort, Contributing Writer

While buying CDs has long been a thing of the past, it appears that even buying songs from services like iTunes is moving to the past as well. Streaming is becoming a bigger and better way for people to access music every day. In places like Sweden, streaming music is becoming so big that it is dominating the music industry. Spotify is one company that has managed to take great advantage of this recent surge, and a new report issued by ABI Research (News - Alert) indicates that the company will have a 32 percent share of the streaming music service by the end of 2013.



That 32 percent means that Spotify, which just recently came over to the United States, will be taking a rather large share from the 29 million streaming music subscribers that ABI believes will be active by the end of the year. Spotify will be the leader, but it will be closely followed Deezer and SK Telecom’s MelOn. Rhapsody and Sony are bringing up the rear. Apple’s (News - Alert) iTunes Radio could be a player in the market next year, but it doesn’t appear to be a service that is going to be much of a challenge to Spotify (News - Alert) in 2013.

At least part of the reason that Spotify is beating out the competition is because there really aren’t a ton of ultra popular services that offer what Spotify can. Spotify has managed to stretch itself around the globe, and that has meant the difference when talking about this particular market.

Senior analyst Aapo Markkanen talked about the streaming music service in a recent release, saying, “The past two years have seen a remarkable international expansion of streaming as a distribution model, but in terms of its long-term potential we’re still only scratching the surface.”

ABI Research did say that both Apple and Google (News - Alert) were poised to make some noise in the coming years, but one has to wonder whether it might be enough to make a dent in the hold that established streaming services have on the market.




Edited by Alisen Downey
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