Traditional CD’s and tapes have been replaced by digital downloadable music. Currently, you can register in a music streaming service and enjoy your favorite music.
There are diverse music streaming platforms and provide varied options for music lovers. Music streaming platform should be compatible with every device you choose. It would be best if you consider the audio quality and support platform for the digital assistant.
Revenue in the Music streaming is projected to REACH US$16,395 Million in 2020. User penetration can be 8.0% in 2020 and can increase12.0 % by 2025.
Listening to slow music can help to practice mindfulness. People need energy and positive vibes to stay motivated. And music streaming platforms are capitalizing on this need. We see a sudden rise in the music streaming platforms online that people can subscribe to.
These streaming platforms reduce the risk of piracy and ensure that the artists get fair pay. From the user’s POV, these platforms offer better quality tracks, latest updates and amazing customisation options. You can now create your own playlists, listen to the latest album releases and more.
But the question arises, which is the best music streaming platform. And to answer that, we need substantial market research data. This is where competition analysis comes into play.
Competition analysis is a vital tool for market research. It helps to gauge modern streaming platforms. Platforms like Spotify, Youtube, Apple Music etc conduct porter’s analysis on them.
Porter’s Five Forces is a tool that gives a detailed report of competitive forces. Here is a summary of the five forces used to evaluate a brand and its peers.
It talks about the ratio of existing companies when you enter the market. This business holds added benefits over the new brand. They are well known to the customer’s needs and can even influence their buying decisions.
Experience and expertise are two key factors that brands earn over a while. Present-day customers are much open to choose alternative brands.
Porter Five Forces give a list of companies and competitors that affect your business.
You get an idea about present competitors for a possible brand that can enter the market. You should research the market and business environment. You can track demanding trends and supply of the industry.
Every brand plans research on the market to know if their product/service gets profit or not. A flourishing industry does not attract more business; it as well as more competitors.
Keeping track of the potential competition is a must. It benefits you to check business and ensure that they don’t become self-satisfied.
Supply power showcases the availability of products and service in the market. In this process, you understand how accessible your brand is. You can also record the suppliers, wholesalers and intermediaries involved in the process.
With each new addition to the supply chain, there can be increased in the final cost. For a company to grow, it is essential to find cheaper options to switch over to.
Customer power is all about buying trends and controlling the brand’s target audience. The market research gives you great insights into customer demographics and income details. Depending on these, you measure the cost of the product and its profitability in the market.
Analytical, lead generation tools are valuable data on customer engagement with the brand.
Threat of Substitution
Before there was a time when a single brand ruled over the market. Currently, the compilation is high, with more players in the market.
The threat of substitution happens when customers replace brand M to brand N.
This can happen due to lack of pricing, aggressive marketing etc.
You should consider below points to understand the threat of substitution:
- Accessibility of the brand to the customer
- Number of chances to replace your brand to other
- The uniqueness of your product or service
- Cost of alternative brands
- Effectiveness of substitution to the company’s ROI
Here are some music streaming platforms in 2020:
Spotify is a universally known music streaming app. Spotify offers subscription music services with comprehensive free features and great premium options.
You can have a complete playlist from 35 million songs collection. You can listen to artist radios and explore the latest music by discovering weekly. Spotify has 96 million subscribers and 170 million users globally. It has a better quality of sound with 320 kbps.
It provides free unlimited songs but with no downloads and adverts. Spotify has plans from euro 9.99 to 14.99, and it gives shuffle play option, high audio quality with no adverts.
YouTube music has replaced tradition; Google plays music. It is competing with Apple and Spotify on price. YouTube music provides the latest music videos.
YouTube has a free version of the app, but only if you have a Google Home smart speaker. The free version has adverts while songs are playing. But the premium version is advert-free.
You get 30 days of free version and the premium would cost around euro 9.99.
3. Amazon Music
Amazon Prime Music is providing around two million songs with a Prime subscription. Prime subscription costs 79 euro per year. You can get an Amazon Music unlimited Echo deal when you purchase an Amazon Echo smart speaker.
Amazon also has a free trial that is available only for users to play on Echo smart speaker. You cannot search for individual songs but should stick to playlists or radio.
You get three months of a free trial. The premium may cost 7.99 euro per year.
4. Apple Music
In Apple Music, you can access 45 million songs and premium sounding music. You get three months of free trial on most iPhones. It is a user-based option with 56 million subscribers. Apple Music can stream at 256 kbps AAC.
For a student, it may cost 4.99 euro, Individual 9.99 euro and Family 14.99 euro. In terms of pricing, Apple is on a par with Spotify, and even it has no free version.
SoundCloud is the best app for music producers and for people who want to discover artists or DJ’s. It has around 180 million tracks from great artists to up-coming artists. Most of them submit their music on this platform. Soundcloud has a free version with basic features. It provides a free version for a pro with monthly charges 7.50 euro per month.
Features of Music streaming applications:
- Explore your favorite tracks easily
- Personalized Playlist
- You can access the online and offline playlist.
- Social Media Integration
- Live to stream
- Updates and notifications
Platforms Spotify, Amazon music offers unlimited access to libraries for a monthly subscription. Music can be gushed to different connecting devices. Ads and commercial breaks between songs are not included in many platforms.
Author Bio: Mary Jones is the co-founder and editor-in-chief at TopMyGrades, which focuses on career counselling for university students in the US, Canada, UK and Australia. Mary helps students with their marketing reports and assignments. She has extensive content editing experience and has worked with MSNBC, NewsCred and Scripted in the past. She has also authored blogs on Lifehack.org, Wn.com, Medium.com, Minds.com and many more digital publications.
Mary Jones is the co-founder and editor-in-chief at TopMyGrades, which focuses on career counselling for university students in the US, Canada, UK and Australia. Mary helps students with their marketing reports and assignments. She has extensive content editing experience and has worked with MSNBC, NewsCred and Scripted in the past. She has also authored blogs on Lifehack.org, Wn.com, Medium.com, Minds.com and many more digital publications.