Music fans aren’t being offered enough choice from streaming platforms like Spotify and Apple Music, a new report claims.
Findings from Entertainment Retailers Association claims that online music services are too similar, giving consumers the same content with little difference in pricing.
They suggest that the value of the streaming market, which is currently at £829m, could be doubled (£1.6bn) by 2023 if music companies introduced “super-premium” packages and catered for older listeners.
Pedro Sanches, from OC&C who conducted the study, said that “there’s a major prize at stake”. He went on the say that the “all-you-can-eat” model currently offered by the major platforms had “enjoyed enormous success, in part because of its simplicity.”
However, he argued that “further innovation will drive more growth” for the companies.
The report also highlighted a number of potential new moves that could help push platforms forward. These included offering exclusive content and products as part of premium subscriptions, while catering for audiences outside of the family and student plans currently available.
This comes after it was revealed that Apple Music now has more paid subscribers that its main competitor, Spotify. A report published in February showed that Apple Music had 28 million paid members in the US, compared to Spotify’s 26 million.
Apple Music director Jimmy Iovine shared his thoughts on how he thinks music streaming services are too similar last year, arguing that something had to change in the industry. The boss hinted at a move towards more exclusives for the company.
In April, The Strokes’ frontman Julian Casablancas called streaming services “a waste of time” and blamed the advances of streaming technology for music having “gone so backwards”.
“They’re all just ripping everyone off,” he said. “You can have your online existence, but trying to suck on Spotify’s sweet sweetness is just a waste of time for me.”