In this latest in a series of posts from Reportlinker, we review the latest music+tech news, with one big statistic per news item. All you need to know, in figures!
$56 million: Jay-Z purchased Tidal for this amount. The company also is partially owned by rapper Kanye West and pop stars Madonna and Beyoncé, so it has big name backers. The question is whether it will be able to compete against better-established streaming music services like Spotify, Pandora, Rhapsody and others. Jay-Z and his partners believe Tidal will be the place music fans will use to discover indie and experimental artists without the interference of music labels and producers. Tidal will have two price points: $9.99 and $19.99. Source: Newsweek
$64: The amount the average customer spent annually on music, when CDs were the only way to access new music. Today’s music lovers are more discriminating. They have to love a streaming music service before they’ll commit to paying a monthly subscription fee. Many take advantage of freemium accounts; free subscription levels that are supported by advertising. Source: Fast Company
$3.2 billion: Apple purchased streaming music service Beats Music for this price. Apple has 500 million iTunes users and plans to launch its own streaming music service later this year. When a survey was conducted of US music subscribers by Midia, 62% of respondents said they were likely to sign up for Apple’s service. According to Swedish tech news site Breakit, streaming makes up 15% of music sales. That’s good news for Apple and maybe also for Tidal because the market has much room for growth. Apple’s 500 million iTunes users dwarf Spotify’s 60 million users. Tidal, meanwhile, has only 500,000 users. Source: NDTV Gadgets
$7 billion: The music industry’s total revenue in 2014. Last year, for the first time, streaming revenues surpassed those of CDs, according to the Recording Industry Association of America, although the difference was slight: streaming services accounted for $1.87 billion, while CD sales accounted for $1.86 billion. Live music sales contributed less than a billion. Sales of permanent downloads dropped to $2.58 billion. More users are turning to streaming services instead. Since 2011, the number of streaming music service subscribers has tripled to 7.7 million. In 2012, digital downloads reached their peak. Tidal and Apple will be competing in a space dominated by a few companies. In the US, Pandora is the most popular service, but globally Spotify is the leader. The majority of people who stream music are under the age of 25. After age 25, a little more than half of music lovers use streaming service and after age 55, 26% of people do, according to Edison Research. Source: Mobile Industry Review 5.
60% of teenagers (age 16-19) stream music, as opposed to 21% who buy it, according to research firm GlobalWebIndex. The top three sites teens use the most are Google Play, Netflix and iTunes. Less than half of teens use music apps. Source: Musically
More from Reportlinker next month!
Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.
Top photo via Tidal