Please provide me a competitive analysis on Spotify, Apple Music and Google Play in Australia.

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Please provide me a competitive analysis on Spotify, Apple Music and Google Play in Australia.

Since Spotify hit Australia in 2012, it has become the biggest online music streaming platform, ahead of Apple Music and Google play. Music consumption has evolved from CD sales to digital online streaming, and Spotify is now at the frontier of online music streaming in Australia. With the introduction of streaming services, the difficulty of having to go to music stores to purchase music has been eliminated. Consumers now have access to a plethora of music selections with just a subscription. Below we look at Spotify's prominence in the Australian market and how they stand up to other competitors in terms of pricing, competitive advantage and services.

AUSTRALIA STREAMING INDUSTRY

There are over 100 million paid streaming subscribers and about 100 million free subscribers online due to the advent of Spotify, Apple Music, and Google play. Ease of access and exposure has driven the growth of online streaming in many countries, including Australia. Australia is among the top earning countries in online streaming with a revenue of US $179.4 million. It is estimated that about 4 million people in Australia and New Zealand are subscribed to a streaming service. Also, one in eight Australians pays a monthly fee to platforms like Spotify and Apple Music for access to music. This increase in subscribers has led to an increase in revenues for the artists. A reported $62 million was earned by Australian and New Zealand artists in 2017 denoting a 127 percent increase from the previous year. At some point, Australia had up to 15 online music streaming services, but was reduced to 9 after some platforms shut down due to their inability to keep up with the competition. The last standing nine consist of Apple Music, Deezer, Tidal, Spotify, Google Play Music, Groove, iHeartRadio, Vevo and Youtube Red. Out of these 9 services, Apple Music, Spotify, and Google Play Music all stand out as the major streaming giants in Australia.

SPOTIFY, APPLE MUSIC AND GOOGLE PLAY MUSIC

Every streaming service knows its target audience and how they appeal to them. Some streaming services have deals in place with major artists to share contents exclusively only to their platforms as well as other unique features. Not all music streaming platforms offer the same services. They have different features to enable a competitive advantage. And as the three major streaming platforms in Australia, Spotify, Apple Music and Google Play Music all have unique features.

Touted as the next Google of music streaming, Spotify boasts of over 70 million paid subscribers all over the world. We can classify Spotify as the biggest streaming service in Australia with 60,000 new users per week. One in four users in Australia uses Spotify. With a population of 25 million, one in four means over 6 million people have tried Spotify in Australia. Furthermore, Spotify has 30 percent of Australian users subscribing to their $11.99 a month premium paid service which is higher than the world average of around 25 percent. The closest music streaming service to Spotify in terms of subscribers is Apple music with up to half of Spotify's numbers. Spotify users in Australia have access to 30 million songs. New users pay 99¢ for 3 months, then after that the user can opt for a single plan of $11.99 per month or a family plan of $17.99 per month. Spotify's streaming quality stands at 96 – 160 kps for free users while premium users have a quality rate of 320 kps. Spotify is available on all IOS and Android devices as well as the PS4 game console. A unique feature of Spotify is that it allows you to log in and keep listening to your music outside of your profile country if you travel. Spotify is best for someone who wants an easy interface or doesn't want to pay for music streaming.

Apple music on the other hand, is one of the fastest growing streaming services, attracting 20 million subscribers within two years of its launch. Just like Spotify, Apple music is priced at 99¢ for 3 months, then after users can opt for a single plan of $11.99 per month, a family plan of $17.99 per month and a student plan of $5.99 per month. Apple users have access to over 30 million tracks. Its streaming quality is 256 kps and it is available on all IOS and Android devices. Apple music's deal with Drake has been extremely beneficial to the streaming company as they hold the rights to share the rapper's exclusive contents only on their platform.

Lastly, Google Play Music, a streaming service backed by Google, trails both Apple Music and Spotify in Australia. The first 4 months is free for new users, after which the user can opt for a single plan of $11.99 per month or $17.99 per month family plan. Its streaming quality rate is 320 kps. Users have access to over 40 million tracks. Google Play Music gives you to opportunity to stream your own music collection and augment it with songs you don't already own.

CONCLUSION

Spotify's 80 million paid subscribers worldwide shows how dominant they are in the streaming industry, followed by Apple Music's 27 million subscribers and Google Play Music's 7 million subscribers. This dominance has transcended into the Australian market with Spotify edging out both Apple and Google play. Presently, Spotify's number one position in Australia is solidified, however the hastened growth rate of Apple Music, and Google Play Music's merger with Youtube Red Service might threaten Spotify's position in the future.
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