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Is Netflix Still Larger Than the Streaming Music World?

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Midia says at least 100 million people paid to stream music in 2016

Netflix (NFLX) reported that it had 93.8 million paying subscribers at the end of 4Q16. While Netflix continues to grow its subscriber base at a double-digit rate, the streaming video service has lost its big lead in the music streaming industry.

According to Midia, a market research firm, music streaming services such as Spotify and Apple’s (AAPL) Apple Music finished 2016 with a combined 100.4 million paying listeners, suggesting a growth of 48% YoY (year-over-year). So the music streaming industry has topped Netflix in paying customers.

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Midia says 20.3 million listeners are paying for Apple Music

At the end of 2015, IFPI, a recorded music body, reported that the music streaming industry had 68 million paying subscribers, as compared to Netflix’s 71 million paying customers at that time. Midia’s latest data show that Spotify has maintained a clear lead over rivals in the music streaming market with 43 million paying listeners, as compared to 20.9 million paying customers paying for Apple Music.

Spotify and Apple both charge a monthly fee of $10 for their music streaming services. Apple has a family account that costs $15 per month. Apple Music is part of Apple’s services business, wherein sales rose 22% in fiscal 2016.

Netflix’s industry still in the lead

Although the music streaming industry now boasts more paying listeners than Netflix, the overall streaming video industry is still in the lead, if you combine subscribers on Amazon’s (AMZN) Prime Video platform and other video streaming services like AT&T’s (T) DIRECTV Now, and DISH Network’s (DISH) Sling TV.

Correction: An earlier version of this article indicated that Netflix had 87.8 million paying subscribers at the end of 4Q16 instead of 93.8 million. We regret this error.

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