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!
Time flies. It’s hard to believe 2016 is nearly over. The year was a fantastic one for the music industry. Revenues soared — thanks to streaming — and music startups looked toward a technological future. Let’s review 2016 by the numbers.
$1.6 billion: Revenue from streaming during the first half of 2016, putting the year on pace to be the first that streaming overtook download sales. This year also saw streaming consecrated by the music industry: counting toward gold and platinum records and becoming eligible for Grammy awards. Spotify (top photo), the world’s largest streaming site, reached 40 million users in 2016. Apple Music, the next largest site, reached 17 million. Despite these successes, there are still challenges. The debate remains over whether streaming services pay high enough royalties to artists and songwriters and whether streaming sites stifle competition. Source: Pitchfork
100: 2016 was the year of the woman, as Billboard unveiled its top 100 female executives in the music industry. The list represents “the best of today’s dealmakers, influencers and tastemakers,” the magazine said. Bozoma Saint John, head of global consumer marketing at Apple Music/iTunes, was named executive of the year for her work to grow Apple Music. She previously worked for Beats Music before it was acquired by Apple. “I didn’t need a technology person,” said Apple’s Jimmy Iovine. “I needed someone to sell a streaming service. And if she could sell me, she could sell anybody.” Source: Billboard
23.2%: The amount music revenue grew in the Netherlands during the first half of 2016, the largest growth of any nation, rising $76 million. This growth is attributed to streaming, which saw a 52% increase with revenue growing $42 million. Physical music sales also increased 2.4% or $29 million. Other nations also saw a revenue increase of between 3.6% and 10.9%, according to data compiled by The MBW Review. The only nation profiled that saw a drop in revenue was Japan. Revenue declined 2.4%, a $1.12 billion drop despite an increase in streaming. Globally, the industry is expected to reach $15.8 billion this year. Source: Music Business Worldwide
$4.5 billion: The amount record labels spent on marketing and A&R this year, according to IFPI and WIN’s report Investing in Music, a rise since the last report which examined the industry in 2013. The investment has gone toward transitioning the industry to digital. Source: Music Ally
500,000+: The number of music tracks that have been created using artificial intelligence. The tracks were created by UK-based startup, Jukedeck, “It’s probably fair to say that AI will change the music industry and lots of other industries a lot more than the internet did,” Ed Newton-Rex, Jukedeck CEO, said at the Music’s Smart Future event. The company uses a technology called neutral network to compose notes and tunes. Its first customers were YouTube content creators. The technology is exciting, Newton-Rex says, but it won’t put human composers out of work. Other technologies set to revolutionise the music industry include voice assistants, chatbots and machine learning. Source: Music Ally