Study says 70+% of top streaming services' registered users don't come back

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Issue Date: 
May 14 2013 - 11:50pm

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New research indicates that for streaming music services, 70% or more of registrations are likely abandoned.

Digital Music News reports on research by Midia's Mark Mulligan on services Deezer and Spotify. Mulligan found that 73% and 70%, respectively, of these services' registered listeners sign up, and don't return.

"What the numbers show is that inactive users is a big problem for streaming services, which in actual fact means that churn is a bid problem for streaming services," Mulligan wrote in his blog. "The important point is... that streaming services as a whole have a problem with churn."

Yesterday Clear Channel announced that its iHeartRadio platform has reached 30 million registered users (more here), but gave no indication of what percentage use the service on a regular basis.

Spotify' Daniel Ek identifies that this affects all businesses with a free tier that requires registration. Mulligan indeed points out that this isn't unique to music services. Only roughly 25%-35% of registered users of social networks like Google+ and Twitter use those services regularly (see here). Mulligan's blog entry is here. Digital Music News covers it here.

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