In this 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!
Streaming, radio and concerts are the music industry’s three strongest vectors right now. Combine the three, add artist and fan engagement, and you get what TechCrunch is calling full stack music. Let’s look at the numbers.
$45 billion: The amount radio stations generate annually from advertising. Radio is how the majority of people discover new music. In the U.S. alone, 92% of the population listens to the radio and they listen an average of 15 hours a week. On-demand music allows listeners to pick their own music. Service providers include Spotify, Pandora and Apple Music. These services make money through subscriptions and advertising. This year, concerts will have $30 billion in gross ticket sales. Musicians make 70%-80% of their income from concert sales. However, 50% of tickets tend to go unsold. Source: TechCrunch
$1 billion: Revenues from streaming music during the first half of 2015, compared to $834 million in the same period in 2014. This year marks the first time digital music has surpassed physical music sales, according to Recording Industry Association of America. Sweden is the top market for streaming music with 92% of revenue coming from subscription sales and 5% from permanent downloads. That compares to Canada which has 83% of revenue generated from subscription sales and 55% in the U.S. Source: Vancouver Sun
Just over 50%: How much tour revenue has increased over the past three and a half decades, according to a study by SeatSmart. But the bump in tour revenue doesn’t make up for the loss in album sales. During the same timeframe, album sales dropped 84%. And it also doesn’t mean more people are going to concerts. In fact, concert attendance also is dropping while ticket prices are increasing. Concert attendance peaked in the 1990s, although it has experienced a slight increase this decade. In addition, many artists do well in concert sales but not album sales and vise versa. Still, when albums are compared, revenue is more equally distributed among artists than concert sales. When it comes to concerts, big-name artists like The Rolling Stones and U2 rule the industry. Source: SeatSmart
$450 million in cash and stock: The amount Pandora paid for TicketFly, a startup in competition with Ticketmaster / LiveNation. Pandora is the largest and oldest streaming music site in the world with 79 million users listening to an average of 20 hours monthly. However, the service struggles to make a profit. It pays a large percentage of its revenue to labels and artists. These fees are determined by the U.S. government. With the purchase of TicketFly, Pandora hopes it will allow it move into ticket sales, which have no government regulations. Source: The Verge
15 million: The number of people who use Guvera globally in more than 20 markets. The streaming service has signed a deal to partner with Virgin Mobile to provide mobile users in Australia access to music. Guvera is free; users will only pay for data. The partnership allows Virgin to compete against Spotify and Apple Music. Source: ZDNet
Image source: Shutterstock, by dwphotos