Global music streaming subscriptions will hit 235 million by year end

Global music streaming subscriptions will hit 235 million by year end It seems that people all across the globe love their music streaming services. According to a new report, 235 million people will be subscribers to a music streaming service by the end of 2018, underlining the subscription model’s success in the music industry. In other stories this week, we examine a report on the impact of subscription services on Amazon’s revenue growth. Next, we highlight a new subscription partnership between The New York Times and Scribd, as well as Walmart’s new plans to sell third party streaming subscriptions. We then look at Lyft’s expansion of its subscription program, and finally, Netflix may be looking to reduce its subscription pricing in India.

Music streaming continues to gain popularity globally

According to a market report from FutureSource Consulting, 235 million people across the globe will subscribe to music streaming services by the end of this year. Thanks to the explosion of subscription streaming services like Spotify and Apple Music, music labels such as Sony Music, Warner and Universal are raking in billions in digital revenue. Spotify currently has 83 million subscribers while Apple Music has 50 million.
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How much are subscriptions contributing to Amazon’s revenue growth?

Amazon’s subscription services have seen steady growth over the past few years, with revenue rising from $2.7 billion in 2014 to nearly $10 billion in 2017. According to the report, this is expected to grow to $13 billion by the end of the year, and $20 billion by the end of the decade. Amazon Prime contributes the biggest chunk to the subscription revenues, along with audiobooks, e-books and some other non-AWS subscription services. Subscription services are expected to contribute around 6% of Amazon’s overall revenue growth by the end of the decade.
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The New York Times and Scribd launch a subscription package

The New York Times and Scribd are coming together to offer a dual subscription package. Priced at $12.99 per month, the subscription plan provides access to The New York Times online as well as the full repository of digital books and audiobooks on Scribd. Subscribers to this package could save at least $5 per month compared to individual subscription programs from both these businesses. Consolidation among similar or complementary services may yet be another new trend to combat subscription fatigue.
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Walmart wants to sell third party subscriptions

Walmart continues to add value to its platform in a bid to compete with the likes of Amazon. The company is in talks with major media businesses to offer their services through an online store. Walmart wants to give Vudu customers the ability to add premium services like HBO Now or Showtime. Recently, Walmart also tied up with MGM to fuel content for its Vudu service.
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Lyft launches its subscription program across the US

Ride-hailing company Lyft has been experimenting with subscriptions for some time. Lyft offers an All-Access plan for $299 per month which gives users 30 rides priced up to $15 each. If a ride costs more than $15, the user ends up paying the difference. Lyft has grand ambitions for its subscription program, but somehow users paying over a fixed ceiling sounds counter intuitive to the idea of an “All-Access” plan. Will Lyft get a lift with this subscription program?
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Netflix’s pricing plans to get cheaper in India?

Netflix has hinted that it may be looking to introduce cheaper plans in India. The company recognises that it has a long way to go in India and reaching the right price point will be key to success in a price sensitive market. It is noteworthy that Netflix is the most expensive streaming service in India with base plans priced at Rs 500 per month. Contrast that with Amazon Prime which offers its subscription program for Rs 999 per year or local streaming website Hotstar which costs just Rs 199 per month. Recently, Netflix has been enjoying success in the Indian market through its critically acclaimed series Sacred Games.
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Also read: AT&T to enter the subscription video space next year 

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