Streaming Industry Trends: What’s in the Forecast for 2025?

Just as it felt like streaming audio couldn’t get any bigger, it did. 

This year has seen tremendous growth for streaming platforms, whether they focus on music, podcasts, or live content. And it doesn’t look like streaming audio is slowing down anytime soon. Experts are predicting continued audience growth, a continued interest in micro-communities, creator and influencer loyalty, and interesting opportunities for advertisers to take advantage of new platforms and market conditions. 

Based on industry reports and internal data, these are the seven streaming audio trends we see continuing into 2025.

Personalization Will Be Even More Personal 

As streaming platforms continue to implement machine learning into their algorithms, streaming content becomes more and more curated to the individual.

Streaming audio’s hyper-personalization took hold in the early aughts with the Music Genome Project and then continued to evolve in the first quarter of the 21st century with new tools and features. Platforms rely on user-provided information to serve the most relevant music and podcasts. And users gladly share their data when the outcome is better music.  Contextual advertising and dynamic ad insertion will be the cost of entry for advertisers in 2025.

Superfans Create Super Loyalty 

Because digital streaming gives creators the ability to connect more closely with their audiences, they attract tight-knit communities. Fan-powered platforms like SoundCloud with social-media like features allow for community building and engagement. And podcasters are increasingly embracing and encouraging two-way communication with their listeners.

Advertisers can lean into the fanbase to drive deeper connections and build loyalty. And partnering with and supporting the right creators could have big returns.

Listening time is still on the rise.

This year, digital/streaming audio reached 76% of Americans (12+), and they spent an average of 4.5 hours streaming—61% more time than with traditional audio. And this as all as AM/FM continues its decline in popularity with listeners who crave more personalization and control. If you’re looking to reach consumers throughout the day, wherever they are, digital audio delivers.

Ad-supported Content is Attractive

Whether it’s consumers feeling the pinch of inflation or platforms rolling out new (or more) ad-supported tiers, audiences are increasingly open to paying for content with their attention. But that doesn't mean we're right back to where we started. The old broadcast approach (i.e., heavy ad loads, one-size-fits-all ads, disruptive experiences) doesn’t work for digital audiences.

Most digital platforms offer fewer advertising minutes than traditional media, meaning advertisers get more share of ear for less money. For instance, Pandora has far less commercial ad time per hour than AM/FM. And with digital formats like streaming audio and podcasts, advertisers have more (actual) targeting options that allow them to develop custom creative that is tailored to their audience. 

As more and more listeners opt for ad-supported solutions in the face of increasing subscription prices, advertisers have an opportunity to reach and resonate with consumers. 

Smart Speakers and Voice-activated Streaming

According to internal data, more than 8 million listeners tune into Pandora or Sonos speakers every month. Of those millions, more than a third listen on connected home or smart speakers. It’s not just Pandora listeners either, more than 35% of US adults own a smart speaker now, which is a huge jump from the 5% who owned one in 2017.  

Connected device listens have an exponential impact since there are often multiple people listening to the speaker at any one time, whether it’s a family listening while doing chores or a holiday gathering of friends.

Social Audio Platforms Drive Community

The rise in popularity of mobile devices and headphones made audio a deeply intimate and personal experience. But things are changing. With platforms like SoundCloud, TikTok, Shorts, Spaces and even subscription streaming apps like Pandora, listeners are engaging in more shared experiences. 

Streaming audio goes viral thanks to funny or heartfelt videos. Public playlists attract listeners to otherwise little-known artists. These growing digital communities that make the internet feel more local give advertisers the opportunity to show support.

Podcasts Aren’t Going Anywhere

Nearly 100 million Americans listen to a podcast each week, and that’s up 31% from 2023. Advertising revenue on podcasts topped $2 billion this year and is expected to surpass $6 billion by 2026. And with podcasts easily accessible on streaming platforms, it's a trend worth noting.

Podcasts also offer an interesting contrast to terrestrial radio. Nearly three-quarters of AM/FM listening happens in the car. But for the 98 million weekly podcast listeners, podcasts accompany listeners throughout their days. Only 5% of podcast listening happens in the car because once the car is off, their mobile device is still with them. They listen at work, cooking dinner, doing chores, or running errands. 

Stay Ahead of Advertising Trends with SiriusXM Media

We’re constantly evolving to meet our advertisers' needs and give them the tools to ride the latest trends. Using user-provided data, advertisers can create dynamic ads that meet listeners where they are based on location, mood, listening preferences, device type, and even weather. 

Our platforms like SiriusXM, Pandora, SoundCloud and our streaming and podcast networks offer engaged audiences who feel fierce loyalty to their favorite creators, musicians, and on-air personalities (and the advertisers who support them). 

Are you ready to ride the digital audio wave into 2025? Let’s talk. 

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