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Statistics has shown that some record labels have had their revenue rised thanks to music streaming

Discussion in 'General Discussions' started by Sonia, Jan 4, 2017.

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  1. Sonia

    By:SoniaJan 4, 2017
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    Statistics has shown that some record labels have had their revenue rised thanks to music streaming services like Spotify and Apple Music – and this after half a decade ago, when the demise of the music industry seemed inevitable due to recession, rampant piracy and declining CD sales.

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    However, it all changed in 2016, when profits from music streaming, including Spotify, Apple and Amazon, have contributed to the largest surge in labels revenue in more than 10 years. For example, Warner Music announced revenues of $3.25bn in 2016 – its highest in 8 years. $1bn of that was from streaming services. The researchers also point out that revenue from streaming was more than double the label’s download revenue and $100m more than its physical revenue. Other music labels have seen a similar surge in profits. By the way, the most-streamed artist of 2016 was Drake. In the meantime, Adele’s hit single Hello has been streamed 632m times and counting.

    At the moment, 90 million people are signed up to streaming services all over world, which makes boycotts by artists like Taylor Swift seem redundant. Industry players believe that streaming had democratized access to music and made it easy and cheap. Indeed, for many consumers, Spotify and Apple Music are better than any hassle of an illegal download service.

    At the same time, not just music labels benefit from streaming: with album and single purchases, it makes no difference if they were ever played, while streaming rewards consumption, paying money for each time a song is played. Apparently, this shift has rewarded lots of indie labels, especially those with big-hitting artists on their roster.
     

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