In a new report, Juniper Research says the global subscription market will increase 40% this year. Western Europe will account for nearly half that revenue, and most of the remainder will be evenly split between North America and the Far East & China.
Juniper’s estimate of $1.73 billion for the subscription market may seem low, but it counts only mobile-related revenue. After all, Juniper does market research for mobile markets. The IFPI’s figure for last year’s subscription market is $2.1 billion value. The two figures are actually further apart than they might seem. Juniper’s figure represents consumer spending. The IFPI’s figure represents trade value, or the amount that is actually received by record labels.
Although Juniper’s forecast leaves out some PC-based subscription revenue, it captures the bulk of subscription revenue and focuses on what creates the most value. While some PC-based usage is free — Spotify has an ad-supported tier, for example — subscription services charge for mobile usage.
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