March 19, 2015 at 18:00In the USA, streaming audio services revenue exceeded CD sales revenue for the first time
Music streaming services for the first time exceeded CD sales in revenue. But in the United States, the main source of profit for the music industry is still downloading digital music, RBC reports .
Last year, revenue from 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 entire music market). According to the Financial Times, citing information from the American Recording Industry Association (RIAA), this segment of the music market grew by 29% compared to 2013.
The revenues of free streaming, which only earns on advertising, have barely changed over the past year. But the revenue of paid services that pay interest to the digital copyright agency increased from $ 590 million to $ 773 million. The
distribution of streaming exacerbated the contradictions between the creators of music and distributors. In this regard, the story of the singer Taylor Swift is indicative , which at the end of 2014 removed its tracks from the Spotify service, believing that you need 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 the most important marketing tool.
Despite the fact that paid downloading of music is the main source of profit for the music industry and makes up 37% of the industry’s revenue, its popularity is also declining. So, last year revenue was recorded by 8.7%, to $ 2.58 billion.
CDs began to be sold 12.7% less and revenue from their sales fell to $ 1.85 billion. Total sales of music on physical media decreased 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 Cary Sherman, RIAA CEO, notes, the music industry continues to undergo major changes. Record companies are now primarily digital music companies that receive more than two-thirds of their income from selling music in various digital formats.
Last year, revenue from 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 entire music market). According to the Financial Times, citing information from the American Recording Industry Association (RIAA), this segment of the music market grew by 29% compared to 2013.
The revenues of free streaming, which only earns on advertising, have barely changed over the past year. But the revenue of paid services that pay interest to the digital copyright agency increased from $ 590 million to $ 773 million. The
distribution of streaming exacerbated the contradictions between the creators of music and distributors. In this regard, the story of the singer Taylor Swift is indicative , which at the end of 2014 removed its tracks from the Spotify service, believing that you need 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 the most important marketing tool.
Despite the fact that paid downloading of music is the main source of profit for the music industry and makes up 37% of the industry’s revenue, its popularity is also declining. So, last year revenue was recorded by 8.7%, to $ 2.58 billion.
CDs began to be sold 12.7% less and revenue from their sales fell to $ 1.85 billion. Total sales of music on physical media decreased 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 Cary Sherman, RIAA CEO, notes, the music industry continues to undergo major changes. Record companies are now primarily digital music companies that receive more than two-thirds of their income from selling music in various digital formats.