New digital audio research predicts the number of music streaming subscribers worldwide will reach 15 million by 2017, and the number of connected audio products will nearly double between 2013 and 2017. Analysts report a strong correlation between the growing penetration of networked audio products, including wireless speakers, speaker docks, multiroom digital music systems, and A/V receivers, and music service subscriptions to Rhapsody, Pandora, Rdio, Spotify, and others.
Over the past few years, business models and the prospects for profitability in Internet-based music services have changed substantially. The market for connected audio devices is changing as well. Parks Associates first reported on the linkages between music services and connected audio products in 2011. Since then, the number of users of major streaming music services has increased over 200%, while growth in paying users has exceeded 80%.
The report Evolution of Digital Music on Connected Devices finds worldwide unit sales of audio products with networking capability have increased more than 170% to exceed 24 million in 2012. U.S. owners of music systems and devices that connect to the Internet are more than twice as likely as average broadband households to subscribe to music services. In a May 2013 U.S. survey, fourteen percent of households with connected music systems paid for music services, compared to six percent of households without connected music systems.
