In the US, the revenues of streaming audio services for the first time exceeded revenues from CD sales
Music streaming services for the first time exceeded sales of compact discs in terms of revenue. But in the US, the main source of profit for the music industry is still downloading music in digital format, RBC reports .
Last year, revenues of commercial radio stations with streaming services, as well as services such as Spotify and Rhapsody, amounted to $ 1.87 billion (which is 27% of the total music market). According to the Financial Times, citing information from the American Association of Record Companies (RIAA), this segment of the music market grew by 29% compared with 2013.
Revenues of free streaming, which earns only on advertising, have not changed much over the past year. But the revenue of paid services that charge interest to the digital copyright agency increased from $ 590 million to $ 773 million.
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The spread of streaming exacerbated the contradictions between the creators of music and distributors. In this respect, the story of the singer Taylor Swift, who at the end of 2014 removed her tracks from the Spotify service, considered meaningful that she had to pay not only for the services of the service, but also for the music too. Representatives of Spotify, in turn, said that the option of free listening to music is an essential marketing tool.
Despite the fact that paid music downloads are the main source of profit for the music industry and account for 37% of the industry’s revenues, its popularity is also falling. So, last year, revenue was reduced by 8.7%, to $ 2.58 billion.
CDs were sold by 12.7% less and sales revenue fell to $ 1.85 billion. Total sales of music on physical media declined over the past year from 35% to 32%. And this despite the growing popularity of vinyl in 2014, the demand for which increased by 50%.
As noted by Cary Sherman, CEO of the RIAA, the music industry continues to undergo major changes. Record companies are now, first and foremost, musical digital companies that more than two-thirds of their revenues come from selling music in various digital formats.
Last year, revenues of commercial radio stations with streaming services, as well as services such as Spotify and Rhapsody, amounted to $ 1.87 billion (which is 27% of the total music market). According to the Financial Times, citing information from the American Association of Record Companies (RIAA), this segment of the music market grew by 29% compared with 2013.
Revenues of free streaming, which earns only on advertising, have not changed much over the past year. But the revenue of paid services that charge interest to the digital copyright agency increased from $ 590 million to $ 773 million.
')
The spread of streaming exacerbated the contradictions between the creators of music and distributors. In this respect, the story of the singer Taylor Swift, who at the end of 2014 removed her tracks from the Spotify service, considered meaningful that she had to pay not only for the services of the service, but also for the music too. Representatives of Spotify, in turn, said that the option of free listening to music is an essential marketing tool.
Despite the fact that paid music downloads are the main source of profit for the music industry and account for 37% of the industry’s revenues, its popularity is also falling. So, last year, revenue was reduced by 8.7%, to $ 2.58 billion.
CDs were sold by 12.7% less and sales revenue fell to $ 1.85 billion. Total sales of music on physical media declined over the past year from 35% to 32%. And this despite the growing popularity of vinyl in 2014, the demand for which increased by 50%.
As noted by Cary Sherman, CEO of the RIAA, the music industry continues to undergo major changes. Record companies are now, first and foremost, musical digital companies that more than two-thirds of their revenues come from selling music in various digital formats.
Source: https://habr.com/ru/post/286836/
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