Much noise has been made about the death of the music industry.
Much noise has been made about the death of the music industry in recent years, thanks to falling sales numbers and rising piracy. However, according to a recent report by the Recording Industry Association of America (RIAA), it seems like that is no longer the case.
Streaming Is Saving The Music Industry
The report notes that revenue from music sources in 2016 amounted to US$7.7 billion – the highest since 2009 – with US$3.9 of that being generated by streaming platforms, such as Spotify and Pandora. Specifically, US$2.5 billion of those streaming revenues came from their paid-subscription model, which in comparison, only made up 9 percent of music revenue in 2011.
“We’re starting to see that optimism was justified,” says Stephen Cooper, chief executive of Warner Music. “But it would be dangerous to get too carried away.”
Vinyl Albums Make A Comeback
Following in streaming’s footsteps, the tradition vinyl album also saw sales numbers and revenue creep up in 2016. Vinyl saw sales numbers rise 4 percent to US$430 million, which made for the format’s highest share since 1985 – 32 years ago!
Album Sales On A Steady Fall
However, it is not all rosy in the music industry. Full-length albums in CD formats, as well as downloads, continued their steady decline since 1999. Less than 100 million physical CDs were sold in 2016, a number not seen since 1986 according to the New York Times, with revenues falling 21 percent to US$1.2 billion. Downloads, too, saw a similar drop in profits, with it falling 22 percent to US$1.8 billion.
Streaming Is Taking Over
However, like with all formats – be it the VHS tape or the game cartridge – there comes a time when it no longer makes sense to support it, especially not with a new format on the rise. With many artists making the shift from tradition full-length albums to releasing the sporadic single, streaming becomes a much more accessible format for users.
Moreover, streaming allows for access to a larger library of songs than physical or digital purchases ever could, ushering more users over to the format.
While streaming is very much still in its infancy, the impact it has made has been felt all throughout the industry – and the world. If predictions hold up, streaming will be the only way to get a hold of music in the future.