As the streaming market becomes increasingly crowded, companies are becoming increasingly clever in their attempts to capture listeners’ dollars. Take for example Apple. The tech giant recently announced that its Series 3 smartwatch will be capable of playing Apple Music without being connected to a smartphone. This gives the company a heads-up on Spotify, which has yet to release an Apple Watch app.
Let’s look at the state of streaming in September 2017 by the numbers:
$1 billion: The amount digital agency Merlin has paid to independent labels since its founding in May 2008. Between March 2016 and March 2017, the agency paid the equivalent of $1 million daily, a 52% increase from the previous 12 months. The agency will hit its next billion in 2-5 years. In the past five years, administrative costs have dropped 80% while revenue paid to members grew eight times. Merlin represents 20,000 independent record labels and distributors in 53 countries. It handles accounts on websites such as SoundCloud, Deezer, YouTube Red and Spotify. Source: Music Business Worldwide
$318 million: The value of Australia’s independent record labels, 30% of the total market, according to a study by AIR. The study, called AIR Share: Australian Independent Music Market Report, examined independent record labels and distributors in 2014 and 2015. In those years, the industry released 6,000 albums and singles and generated $123 million in revenue. Nearly all, 95% of indie releases were new content. Source: Billboard
$1.05 billion: The amount Universal Music Group generated in streaming revenue during the first half of the year, a 45.1% increase from the first six months of 2016. Meanwhile, sales from downloads declined 18% to $382 million. The company is valued at $22 billion, triple its value in 2011. The market for streaming is forecasted to reach $28 billion by 2030, according to Goldman Sachs, and revenue will increase 500%. By 2030, the annual revenue for streaming will be $34 billion, including ad revenue, and the music industry will be worth $41 billion. Source: Music Business Worldwide 1 and 2
Hundreds of millions: The amount social media giant Facebook is offering music publishers and record labels so that Facebook users can legally include songs in uploaded videos. If posters do not have the rights to music, the rights holders can ask Facebook to remove the videos. Negotiations have been ongoing for months. Video will drive Facebook’s business over the next few years, according to company owner Mark Zuckerberg. Facebook will continue to invest in video, Zuckerberg told investors. In 2016, music sales increased 5.9%, and Facebook would like a piece of the market. Source: Bloomberg
Undisclosed: The amount of the deal between Tencent Music and Entertainment Group, and Alibaba Music. Under the agreement, Tencent will sub-license music from Sony Music, Warner Music and Universal Music to Alibaba. In exchange, Alibaba will give Tencent exclusive content from Rock Records. Tencent dominates the music streaming market in China with its three music apps. Source: South China Morning Post
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