Each month, midemblog partner Reportlinker sums up the key industry trends, in figures. Here’s the latest report!
Spring 2016 brought a lot of changes to the world of streaming music and digital entertainment in general. What do these changes mean? Let’s take a look at the numbers.
- 1999: The year Napster was founded. In the 17 years since its founding, music lovers have been introduced to new ways of listening to music, including ad-supported, free streaming music services. The number of free users for YouTube is 1 billion, 175 million for SoundCloud, 89 million for Spotify and 80 million for Pandora. Artists have responded by releasing albums to paying customers first as the music industry’s revenue rose to an all time high in 2015 of 34%. Source: Pitchfork
- $9.99: The fee Amazon will request as a subscription to its standalone streaming music service, according to Reuters. Even though Amazon Prime includes a music service, it has been rumoured since January that Amazon was planning on offer a standalone service. Rumours started when Amazon entered talks with music rights-holders. The service is expected to launch later this year. Owners of Amazon’s Echo speaker would have a lower subscription fee: $2-$3, according to Reuters, and $3-$5, according to Billboard. Source: Music Ally
- 13 million: The number of works in 33 territories represented by Europe’s Armonia, an alliance of national collective societies, aimed to making online music processing and licensing easier and more efficient. Even though the alliance formed in 2012, it didn’t appoint its first CEO, Virginie Berger, until recently. Berger will start her new position on July 1. She was chosen because of her experience in the field. She worked with many large media companies including Myspace, before forming her own consultancy for media and technology businesses in 2011. Source: Music Business Worldwide
- 15%: The percentage the royalty fee has been lowered to from 30% for Apple’s App Store. The fee applies to software developers and goes into effect when customers subscribe to the service for more than one year. The only thing that works to bring new customers to streaming music services is hit singles. Customers don’t use streaming services to discover new talent or listen to catalogue sales. The change is aimed at encouraging customers to subscribe for longer time frames and to encourage software developers to continue product development. In addition, the thought is that the longer users are on a free tier, the harder it is to convert them to paying customers. Source: Forbes
- $20 million: The amount Japanese messaging app Line makes monthly selling digital stickers, double that of three years ago. The sticker packs sell for up to $2, and revenue totaled $271 million last year. Most social messaging apps have stickers and Line was one of the first in the field to develop them. The app has filed for a dual U.S.-Japanese IPO even though 90% of revenue comes from Japan. Line hopes its stickers will have a broad international appeal. The company also earns revenue through licensing deals and merchandise sales. Source: Tech Crunch