As a music lover I`m following the music market closely, and streaming services has increased in value of one-third from 2013. The streaming services is overtaking CD`s for the first time. Pandora, Spotify, Rhapsody and SiriusXM are among the leaders in this business.
Audio streaming and downloads accounts for 64% of the total market, and according to the Recording Industry Association of America (RIAA), sales of digital music formats hit $4,51 billion in 2014.
Permanent downloads remain the largest source of revenue at 37 percent.
Streaming services is up $1,87 billion in 2014 and paid subscriptions earned $7,7 million last year. Retail revenue value came in at $6,97 billion last year.
The figure is slightly down from the previous year and points to a flat revenue picture for the industry, which has long worried about revenue decline from digital music piracy and the obsolescence of physical formats like CD`s.
Apple`s acquisition of Beats Electronics will change the streaming business. Apple`s iTunes revenue has plummeted and that`s why they bought Beats. They want to compete with one of the biggest in this business; the Swedish brand Spotify.
Apple is planning to sell the music cheaper than it is today. Is that good for the music industry?
The problem in the music tech industry right now is that the ecosystem is broken and has been broken for many years now. If Apple sells the music cheaper, then the others will follow. Apple and Spotify will earn on it, but I don`t really care about them.
The most important thing in the music industry is that the money goes to the producers and artists of the music. Not to the distributors. The music industry need a new business model for music tech companies and change the copyright reforms.
Spotify is used by more than 50 million people but is it profitable for the artists? Taylor Swift`s decision to yank her music off of Spotify is one of the latest episode in the battle over the music industry`s diminishing profits.
Spotify`s payout range is $0,006 to $0,0084 per stream. With 46,3 million streams, Taylor Swift`s payout is $280k – $390k for her chart-toppin single «Shake it off».
Apple already have their own market and is poised to be a big winner, but Spotify will be difficult to break. Rdio and Deezer need to kick ass to still be in the market, and Facebook has been in bed with Spotify for years now, so Spotify will remain strong.
Artists can earn money from other arenas like the live concert subscription service Jukely. People can see all the concerts they want for only $25 a month. Live.ly failed but a similar product is up and running right now. Maybe they will succeed with their new Set.FM.
YouTube is planning to debut an analytical tool that will provide geographical viewer information to help artists route tours and that one is similar to Pandora`s Amp. Facebook inches closer to YouTube`s traffic with 3 billion views a day.
Clean Bandit`s megahit «Rather Be» is the most streamed song of 2014, the Official Chart Company can reveal. The song was streamed 39,7 million times. 15 billion songs were streamed in 2014, and the number is almost double of that in 2013, where 7,5 billion tracks were streamed.
«Rather be» fends off competition from Pharrell Williams’ monster hit Happy, which takes second place with 35 million streams. Close to Happy is John Legend`s «All of me» with 34,9 million streams.
This is a big jump in music streaming in only one year, but this is just the beginning. The massive growth means that streaming now accounts for 12,6 percent of all music consumed in the UK, compared to only 6,2 percent in 2013.
What do you think will happen with new services including Apple`s Beats and Google`s YouTube Music Key set to launch later this year? The platform`s growth will skyrocket in the next 12 months as it cements its position at the heart of mainstream music consumption.
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