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Music Streaming - South America

South America

Revenue in the Music Streaming market is projected to reach €0.88bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.50%, resulting in a projected market volume of €1.15bn by 2029.
In global comparison, most revenue will be generated in the United States (€12,060.00m in 2024).
In the Music Streaming market, the number of users is expected to amount to 84.0m users by 2029.
User penetration will be 16.9% in 2024 and is expected to hit 19.7% by 2029.

Key regions: Asia, Japan, France, United Kingdom, South Korea

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Analyst Opinion

The Music Streaming market in South America has been experiencing significant growth in recent years. Customer preferences in South America are shifting towards digital music consumption, with an increasing number of consumers opting for music streaming services over traditional methods of music consumption.

This can be attributed to several factors, including the convenience and accessibility offered by music streaming platforms. With the rise of smartphones and improved internet connectivity, consumers in South America are now able to access a vast library of music at their fingertips, anytime and anywhere. Trends in the market indicate that local music streaming platforms are gaining popularity in South America.

These platforms often cater to the unique tastes and preferences of the local population, offering a wide range of music genres and regional content. This has led to increased engagement and loyalty among consumers, as they feel a stronger connection to the music and artists from their own country or region. Additionally, partnerships between music streaming platforms and local telecommunications companies have played a significant role in driving the growth of the market in South America.

These partnerships often result in promotional offers and discounted data plans, making music streaming more affordable and accessible to a larger segment of the population. This has helped to expand the user base and increase the adoption of music streaming services in the region. Local special circumstances in South America, such as the prevalence of piracy and limited access to physical music stores, have also contributed to the growth of the music streaming market.

Music streaming platforms offer a legal and convenient alternative to piracy, allowing consumers to access a vast library of music at an affordable price. Furthermore, the limited availability of physical music stores in some areas of South America has made music streaming the primary method of music consumption for many consumers. Underlying macroeconomic factors, such as the growth of the middle class and increasing disposable incomes in South America, have also played a role in the development of the music streaming market.

As more consumers have the financial means to afford a music streaming subscription, the market has experienced a surge in demand. This trend is expected to continue as the middle class in South America continues to expand. In conclusion, the Music Streaming market in South America is experiencing significant growth due to shifting customer preferences, the rise of local platforms, partnerships with telecommunications companies, local special circumstances, and underlying macroeconomic factors.

As the market continues to evolve, it is expected to offer new opportunities for both local and international players in the music streaming industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Digital Music market. Digital music is defined as audio content distributed to the end-user over the internet. This includes paid digital downloads of professionally produced single tracks or albums/compilations as well as subscription-based on-demand streaming services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.