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!
What does the future of the music industry look like? Let’s take a look.
46%: The percentage of revenue both physical music sales and downloads contribute to the music industry. Currently, the 46% is divided almost equally, but the International Federation of the Phonographic Industry (IFPI) believes digital sales will surpass physical ones by the end of the decade. Over the past few years, physical sales and downloads have decreased, while streaming services have seen an increase, growing 39% in 2014 to $1.57 billion. Approximately, 41 million people globally pay for streaming services. The final 8% of the music industry’s revenue comes from advertising, films and live performances. Source: Phys.org
6.9%: The percentage digital sales grew from 2013, reaching $6.9 billion. This growth was from streaming music subscriptions as digital download sales fell 8%. Revenue from subscriptions is expected to continue to increase as new services are added. The IFPI believes this growth will be led by Apple’s upcoming service, Tidal, and YouTube’s Music Key. The music industry as a whole posted revenue totaling $14.97 billion, a 0.4% drop from the previous year. But don’t count the older services out yet. The majority of digital sales, 52%, still come from downloads, and in some nations physical music sales outnumber digital ones by a large percentage. Source: IFPI
30 million: The number of monthly users Grooveshark had before it shut down April 30. The streaming music service, one of the oldest in the market at nine years old, went out of business as part of a settlement with record labels Warner Music, Sony and Universal. The website was accused of allowing its users to upload copyrighted songs and was facing $736 million in penalties if it did not comply. Also as part of the settlement, Grooveshark was forced to surrender all copyrighted material. Users were sent an email in which Grooveshark apologised for failing to secure licenses to use most of the music it offered. Source: Phys.org
380%: The percentage mobile ad revenue on Spotify increased from the first quarter of 2014. Also during the first quarter of 2015, ad revenue on the desktop site increased 53%. Spotify has not released how much revenue was made during the period. Twenty million active users were added from a year ago. Members who joined at the freemium level, the free subscription level supported by ad revenue, increased from 30 million to 45 million. Recently, Spotify added new features to allow advertisers to better reach their target audience. Spotify is available in 58 markets globally. Source: Music Business Worldwide
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 Spotify