Streaming Subscriptions Hit Peak: Music Revenue Growth Stalls
By Trevor Loucks
Founder & Lead Developer, DynamoiTrevor Loucks is the founder and lead developer of Dynamoi, where he leads coverage at the convergence of music business strategy and advertising technology. He focuses on applying the latest ad-tech techniques to artist and record label campaigns so they compound downstream music royalty growth. trevorloucks.com
Edison Research's latest data reveals a significant shift in American audio consumption habits, with multi-subscription ownership plummeting from 13% to just 6% since 2022.
The findings signal the music industry may have reached "peak streaming" in mature markets, forcing labels and platforms to rethink growth strategies as subscriber acquisition slows.
Why it matters:
This subscription consolidation threatens the revenue growth that fueled the industry's decade-long streaming boom.
- Revenue impact: Single-subscription users increased from 28% to 35%, suggesting belt-tightening over expansion.
- Market saturation: At 51% penetration, growth now depends on converting non-subscribers rather than upselling existing customers.
- Platform competition: Services offering identical catalogs face commoditization as users consolidate to single platforms.
By the numbers:
- 51% of Americans 13+ pay for at least one audio subscription service
- 35% subscribe to exactly one service (up from 28% in 2022)
- 6% pay for three or more services (down from 13% in 2022)
- 10% maintain exactly two subscriptions
Between the lines:
The decline mirrors broader economic anxiety about discretionary spending.
Since most platforms offer identical music catalogs, consumers see little value in maintaining multiple subscriptions when one service provides access to virtually the same content library.
The shift forces platforms to compete on user experience, exclusive content, and ecosystem integration rather than catalog size—a fundamentally different competitive landscape.
Industry precedent
Streaming pioneer markets like Sweden and Norway show similar patterns.
Despite analysts predicting "peak streaming" for years, both countries maintained growth through price increases rather than subscriber expansion, suggesting a path forward for U.S. platforms.
What's next:
Platform strategies
Expect aggressive price increases as platforms prioritize revenue per user over subscriber growth.
Services will likely bundle additional content like audiobooks, podcasts, and video to justify higher pricing and reduce churn.
Artist implications
Stagnating subscription growth means the total streaming revenue pool faces natural limits.
Artists must diversify beyond streaming to direct fan monetization, merchandise, and alternative revenue streams as per-stream payouts plateau.
The bottom line:
The streaming boom that transformed the music industry is entering its mature phase.
Success now requires maximizing value per customer rather than pure subscriber acquisition—a fundamental shift that will reshape how labels, artists, and platforms approach growth strategies.
