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!
What’s ahead for the music industry in 2016? Let’s take a look at the key trends, in numbers.
46%: The percentage of potential customers who would not to subscribe to streaming music services because they said the services were too expensive. Other reasons respondents to the Neilson Music report gave for not subscribing were the inability to stream music for free (42%) and not using the service enough to justify the cost (38%). And for those who did subscribe, 83% chose a service based on cost. This means streaming music services need to listen to potential customers. Source: Music Business Worldwide
$9 billion: How much revenue YouTube generated in 2015. This makes it the fastest-growing streaming service. In addition, YouTube is the largest source of music videos for young people, with its video streams growing at a faster rate than its audio ones. The music industry needs to take its cues from the video service and find ways to transform music videos from a promotional tool to a revenue tool. The most successful YouTube artists have done this by creating short, episodic and regular content. Source: Hybrid Language
9 million: The number of vinyl albums sold during the first half of 2015, totaling $222 million in revenue, compared to 14 million sold all year in 2014. These figures suggest vinyl records are making a comeback and increasing in popularity. Although it takes longer to produce a record than it did in the past, they can be purchased from many online retailers as well as record shops. Last year, Adele’s 25 sold 22,000 records in its first week. Ironically, streaming music services appear to be contributing to this growth. However, before the music industry gets too excited, they need to consider that 34% of vinyl customers don’t own a turntable. Instead they are buying collectors items. Source: thump
$450 million: How much Pandora paid to purchase TicketFly in October, proving streaming music services are evolving. Although Pandora has not released its plans, it could become a large competitor to TicketMaster. As more and more companies enter the streaming music space, it’s difficult to believe they will all survive 2016. Mergers and companies going out of business are possible. Other changes, according to Fast Track, include streaming music services offering high resolution audio for streams, revenue from subscriptions is expected to grow and giving artists the option of offering new releases only to paying customers before it moves on to free tiers. Source: Fast Company
$8.8 billion: The amount Vivendi had in the bank at the end of 2015. In September, the company’s CEO said the music service planned to strengthen its main business by expanding into new markets. In December, it purchased a 64.4% share in digital radio company Radionomy. Source: Music Business Worldwide
Photo: © Sebastian Knight, via Shutterstock