Paid Streaming Dominates Music Listening For First Time

Paid streaming dominates music listening for the first time among U.S. consumers, according to new data from Edison Research’s Share of Ear study. The milestone underscores a fundamental shift in how audiences consume music — and what they’re willing to pay for.

Paid Streaming Dominates Music Listening For First Time

Edison’s latest Share of Ear report shows that 51% of all streaming audio listening time now occurs on paid platforms such as Spotify Premium, Apple Music, Amazon Music Unlimited, and YouTube Music Premium. Free, ad-supported tiers make up the remaining 49%, marking the first time paid streaming has taken the lead since Edison began tracking the category.

Back in 2016, free platforms accounted for nearly two-thirds of all streaming time. The reversal reflects how mainstream paid streaming has become — and how listeners now perceive it as a necessary part of daily life rather than a luxury.

Streaming Growth by the Numbers

According to Edison, more than 90% of Americans aged 13 and older now listen to streaming audio each month. Of those, 65% subscribe to at least one paid platform, a figure that continues to rise as free users convert to premium accounts.

Industry data from MIDiA Research adds more context: global paid streaming subscriptions grew to 670 million in 2024, up 10% year-over-year. Spotify leads with 236 million premium subscribers, followed by Apple Music at roughly 105 million, and Amazon Music with about 80 million.

The global paid streaming market is projected to surpass 800 million subscribers by 2026, signaling continued expansion even as the overall digital entertainment sector matures.

Why Listeners Are Paying

Edison’s findings align with a broader trend in digital consumption: people are willing to pay for convenience, quality, and control.

• Better experience – Premium tiers remove ads, allow offline listening, and offer higher audio quality.
• Personalization – AI-driven recommendations have made discovery more relevant and enjoyable, especially for heavy listeners.
• Device integration – Smart speakers, connected cars, and wearables have normalized multi-device streaming, where premium access is essential.
• Exclusive content – Some platforms now offer bonus material, concert recordings, and podcasts available only to paying members.

In other words, the experience gap between free and paid has widened — and listeners are voting with their wallets.

Impact on Artists and the Industry

The shift to paid subscriptions also carries implications for the business of music. While per-stream payouts remain controversial, premium tiers generate higher royalties than ad-supported listening, making this transition positive for rights holders.

According to the IFPI’s 2024 Global Music Report, paid streaming now drives 67% of all recorded music revenue, compared to just 11% from free streaming. The overall global recorded music market hit $28.6 billion in 2023, with streaming responsible for the vast majority of that growth.

For artists, particularly independents, the trend means more stable income and exposure to engaged fans — the kind most likely to attend shows, buy merch, and support ongoing careers.

The Role of Free Streaming

Despite the growth of paid listening, free streaming still plays an important role in discovery. Platforms like YouTube, Pandora, and Spotify Free continue to serve as on-ramps for casual listeners or those in emerging markets where subscription costs remain a barrier.

However, the data suggests that once listeners experience premium tiers — often through free trials or bundled offers — many choose to stay. As a result, paid platforms are gaining both loyalty and listening time.

What’s Next

Edison’s data reinforces the idea that music streaming is entering a more mature, sustainable phase. Subscription models are now the dominant business model, and competition among platforms has shifted from price to features — from personalized playlists to social integration and live experiences.

For the music industry, the focus is likely to move toward increasing the value of each subscriber rather than simply growing subscriber numbers. Expect more innovation in high-fidelity streaming, interactive features, and artist-centric offerings designed to deepen engagement.

The Bottom Line

The latest Edison Research numbers mark a defining moment for the streaming era: paid subscriptions are no longer the future of listening — they’re the present.

As audiences continue to embrace premium platforms, artists, labels, and distributors stand to benefit from a healthier, more predictable ecosystem. The free tier still matters for discovery, but when it comes to time spent and value generated, paid streaming is now officially in control.

Bruce Houghton is Founder & Editor of Hypebot, Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of Skyline Artists.

“Paid Streaming Dominates Music Listening For First Time” first appeared on Hypebot.com.