Market Research Logo

Music Streaming - Music industry saved by streaming services

Music Streaming - Music industry saved by streaming services

Summary

The way music lovers listen to music has evolved all the way from its birth time in the 15th century when music publishers began by using machine-printed sheet music to distribute their audio art creations which then moved on to radio broadcasting, to the creation of record vinyls, to CD-ROMs, to mp4 music downloads from iTunes to now – streaming music online via the power of the internet. According to data from the Recording Industry Association of America, sales from streaming fueled the fastest growth in the world’s biggest music market since 1998. While the growth is apparent globally, American music listeners make up a vast portion of the industry and companies such as Apple and Spotify have had a lot to do with this growth. For listeners, it works out much cheaper to subscribe to streaming services and listen to unlimited ad free music, providing the streamer has the licenses to showcase the listeners’ favorite artists. Instead of paying $0.99 a song or $5.99 for an album off iTunes for example – at the cost of $10 a month, they could instead listen to all the albums and songs on Apple’s database not having to worry about storage too, seeing as it is all streamed via an internet connection.

Key Questions Answered

  • How is music streaming saving the profitability of the music industry?
  • Why is music streaming growing so well?
  • Just how long is this good growth expected to last and what are the problems that are likely to affect the market in future?
Scope
  • Learn why the music streaming industry is developing well.
  • Examine the business models of the major players in the industry.
  • See how the industry is likely to develop in future.
Reasons to buy
  • According to data from the Recording Industry Association of America, sales from streaming fueled the fastest growth in the world’s biggest music market since 1998. While the growth is apparent globally, American music listeners make up a vast portion of the industry and companies such as Apple and Spotify have had a lot to do with this growth.
  • Within this shift in consumers’ preferences from ownership to subscription, the music industry is not alone. PwC has predicted that global internet video revenue will overtake DVD and Blu-ray sales for the first time this year, video subscription services such as Netflix, Hulu and Amazon Prime making up the majority of a projected $24.7bn in revenue.
  • Within this shift in consumers’ preferences from ownership to subscription, the music industry is not alone. PwC has predicted that global internet video revenue will overtake DVD and Blu-ray sales for the first time this year, video subscription services such as Netflix, Hulu and Amazon Prime making up the majority of a projected $24.7bn in revenue.


Overview
Catalyst
Music industry: Saved by streaming services helping to remonetize the music business
Music industry saved by streaming Services
Paid subscriber growth in America has surged
Renting content has become much more popular than actually buying the content
Streaming music works best for chart-toppers but not for the mid-range artist
Other distribution methods are still popular amongst less established artists
App technology surges, so does the need for music streaming apps
Great for the industry, not so great for the streamer
Spotify fails to turn a profit, even to this day it records losses
Sound Cloud has gone through the ups but is now on the down and it is there to stay
Piracy still a mainstream problem worldwide despite legal methods to stream music
Conclusion
Appendix
Further Reading
Ask the analyst
About MarketLine
Disclaimer
List of Figures
Figure 1: Music streaming has enjoyed large growth over the last decade
Figure 2: Digital listening shifts from buying to renting
Figure 3: Spotify financials at the end of 2016 (€’000)
Figure 4: Spotify growth surges in the space of nine years

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report