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!
Much is made in the media and elsewhere about the state of the music industry. It’s always bad news – artists are underpaid, physical music sales are no longer profitable and young people attend concerts in ever smaller numbers. However, it’s not all grim. In the United States and Europe, the music industry has reason to celebrate. Let’s look at the numbers and find out why.
- 8.1%: The increase in music sales revenue in the US during the first half of 2016. The increase amounts to $3.4 billion and is the largest increase since last century, according to the RIAA. The growth came from streaming music services. Revenue from streaming increased 57% from last year and accounts for 47% of revenue in the U.S. Paid subscriptions increased 112%, reaching slightly more than $1 billion and now account for more revenue than both CDs and downloads. Physical sales decreased 14% and downloads dropped 17%. Source: Music Ally
- 49%: The percentage streaming music sales have risen in the UK, totaling $304.7 million in 2015, according to Measuring Music 2016. The report calls streaming the key to the industry’s future growth. In the UK, downloads dropped 12.5% while physical sales fell only 5% reflecting new interest in vinyl. Major music releases in 2015 encouraged sales. More than half of revenue came from music exports. Live concerts saw a 35% jump as events attracted 750,000 foreign visitors. Source: Campaign
- $324.9 million: The amount Spotify Premium generated in revenue for US recording labels in the first half of 2016. By comparison, Apple Music generated $180 million. Together these services account for 85.6% of streaming revenue in the US. Apple Music launched in late 2015, but already generates a 30.5% market share of paid subscriptions. Spotify’s 55.1% market share is growing. This leaves the other streaming music sites to compete for the shrinking remainder 14.4%. Source: Music Ally
- 1,000: The number of music artists who contacted the European Commission via letter to protest about the value gap in the industry. The letter accused YouTube, among others, of taking value away from the musical artists and songwriters. The platforms identified in the letter have a business model where advertising is sold and revenue is divided among rights owners. Other platforms pay artists per song played. In response the Commission has proposed changing copyright laws. Two organizations representing the UK music industry – PRS for Music and BPI – welcome the change. IFPI said it believes there should be fair licensing in Europe. Source: BBC
- $200 billion: The amount of advertising YouTube CBO Robert Kyncl says will be leaving television and migrating to YouTube in the future. Kyncl is the boss of the site’s new Global Head of Music, Lyor Cohen. Cohen believes the music industry needs to learn to adapt to technological changes. Education will help alleviate distrust of streaming services, he says. Earlier this year, YouTube said only 20% of people are willing to pay for streaming music services. Source: Music Business Worldwide
Top photo: © Getty Images / Wittybear