The Music Business Will Never Be the Same

This is the way we listen now. Just as vinyl gave way to CDs, individual downloads are out and streaming services are taking over: 82 percent of Americans between the ages of 16 and 34 reported listening to a streaming service in 2019. Goldman Sachs projects that 21 percent of the world’s smartphone users will be streaming music by 2030, adding up to a $75 billion market of 1.2 billion paid subscribers.

You should prepare to pay more for your music. While services like Netflix have seen price increases, Spotify has essentially remained unchanged for a decade, at $9.99 per month, the same price charged by Apple Music and Deezer. Lisa Yang, head of Goldman Sachs’ European Media and Internet Research, says price hikes are a big driver of Goldman’s growth projections for the industry. “At some point the market will be mature enough to start absorbing more meaningful price increases,” Yang says.