Emerging Music Markets Streaming’s Third Wave

The 20,000 Foot View:  With streaming growth set to slow in mature western markets by 2019, the next wave of fast growth will come from a mixture of mid-tier markets such as Mexico, Brazil, Japan and Germany. Beyond that, the streaming market will need to look towards emerging markets for growth. Emerging markets in Asia and Africa present a diverse variety of opportunities, but current evidence suggests that the outlook for these markets is far from uniform.

Key Findings

• Chinese music            totalled            million in 2017, up                       million one year earlier, while            sum total of reported free            totalled            million 
• Tencent dominates            streaming in China, with            of            and a sum total of            free users across QQ Music,            and Kugou
           2018 Chinese free streaming penetration was            while            tip karaoke on QQ and            do karaoke themselves
• Indian music            totalled less than one million            2017, generating revenue of            million,            the sum of reported free            totalled            million
• In India            was the leading service with            MAUs, followed by Tencent-backed Gaana                       million
• Free streaming            in India            2018 was            reflecting            early growing market with most            its growth ahead of it
• The recorded            market in sub-Saharan Africa was            about            million in retail terms            2017 and            million in label            terms, streaming revenue was            million
• Telcos are            key force in the sub-Saharan            digital music market, including MTN,            generates revenues of around            million            year, across            million customers
• East Africa            Mdundo has the largest installed            of streaming users in sub-Saharan            with just two million MAUs
• YouTube dominates            African streaming and is helping            artists find international audiences
• The Middle            streaming market generated            million in            in label trade terms. 
• After years            copyright challenges, the Russian streaming            is finally growing, led by            Music with            million subscribers 

Companies and brands mentioned in this report: Africha, Africori, Apple Music, Baidu Music, Deezer, du, Etisalat, Gaana, Hungama, iRoking, Jio Music, Kugou, Kuwo, Mdundo, Mkito, Mobile Money Kenya, Mobile Money Tanzania, Mobily, MTN, MTN Music+, Mzliki, Netease, Netease Cloud Music, QQ Messenger, QQ Music, Reliance Communications, Samsung, Safaricom, Saavn, Simfy Africa, Skiza, Tencent, Tencent Music, Vkontakte, Vkontakte Music, Vuga, WeChat, Wynk Music, Yala.FM, Yandex, Yandex Music, YouTube, Zvook