Pandora takes largest share of streaming market in 2016

Closing out 2016 with a 28% share of the streaming market, Pandora have edged out YouTube and Spotify to emerge victorious in the highly competitive streaming market, according to MusicWatch.

The statistics are based on monthly consumer surveys contracted from third party suppliers and are weighted and projected to the internet using people aged 13 and older.

Pandora narrowly beat second place YouTube who recorded 27% of the share of music listening on streaming services. Both the Pandora and YouTube numbers combine the free ad-supported versions and their paid models.

Surprisingly, despite Spotify’s reputation as the dominant force in the streaming market, their 40 million subscribers could only place the service in third place overall, with a 17% share of streaming listenership.

The report indicated that the top three streamed services made up 72% of total hours streamed last year. On average, just over 21 hours of music is streamed by consumers every week.

The big riser in 2017 is set to be Amazon. With their newly serviced Unlimited and the successful sales numbers of Echo devices over the past few months, this year will potentially mark an increase on the 4% share recorded in 2016, contributed mainly by Prime Music.

Apple Music, combined with free streaming from Beats 1, hold a paltry 4% of the streaming market, while Spotify’s premium paid offering takes 7%.  

Streaming from dedicated music and music video services was the preferred format of acquiring music, combining for a share of 28%. Notably, the streaming number do not include streams from social media services or artist websites, which would have further advantaged the format.

MusicWatch’s report also confirms that AM/FM radio is still a viable and popular format for accessing music, gaining second place with 24% of the market.

The decline of physical and sales models such as CD and vinyl, as well as digital downloads, is evident in the report, combining to take third (last) spot with 23% of the market share. Vinyl only took a mere 1% of CD, digital and vinyl’s combined share, however.