Music News: Growth of Paid Downloads vs. Streaming, 2012 vs. 2011

Dust2

http://www.digitalmusicnews.com/perm...annibalism2012

Growth of Paid Downloads vs. Streaming, 2012 vs. 2011
A. Paid Downloads: 1.336 billion. Up 5%.
(iTunes, Amazon, etc.)

B. Spotify Subscribers: 5.2 million. Up 86%.
C. Spotify Active Users: 20 million. Up 100%.
D. Deezer Subscribers: 3 million. Up 114%
F. Pandora Listening Hours (per qtr): 3.56 billion. Up 67.9%.

Subscription Music

http://www.ifpi.org/content/library/...nd_figures.pdf

2010: 8.2 million paying subscribers
2011: 13.4 million paying subscribers (growth of 63%)
2012: 20.0 million paying subscribers (growth of 44%)
2013: ?
2014: ?
2015: ?

ManDown

Wow! It's great that everything is increasing. Imagine all of the illegal downloads that were stopped by Spotify and Pandora.

Haus

Apple needs to work on getting a subscription service out before Spotify gets too big. I love it but having it through iTunes would be a lot more convenient.

Beatfreak

Quote:

Originally posted by ManDown

Wow! It's great that everything is increasing. Imagine all of the illegal downloads that were stopped by Spotify and Pandora.

If they want to save the songs to their computer or iPod they still need to download them. Even if they fork up the cash for the subscription and used the app, they still need a way to download the music for use outside the app.

Dust2

Quote:

Originally posted by Haus

Apple needs to work on getting a subscription service out before Spotify gets too big. I love it but having it through iTunes would be a lot more convenient.

Not sure how it would be more convenient.

Spotify is an app you can download for iOS and Android.

Apple version of Spotify would also be an app you can download for iOS (not sure if Apple would release it for Android).

Itunes for Android?
iBookstore for Android?

atrlster

I can't see Apple getting into the streaming market yet. At least until they figure out how to differentiate it from the other streamers. And how could they market that concurrent with downloads? Everyone would just flock to the streaming lol

ToMmY

I love you and your graphics.

Mister Martian

I love my Spotify subscription.

J a y

I love your statistics.

Dust2

Quote:

Originally posted by atrlster

I can't see Apple getting into the streaming market yet. At least until they figure out how to differentiate it from the other streamers. And how could they market that concurrent with downloads? Everyone would just flock to the streaming lol

Downloads and streaming can co-exist.

CD and downloads have been co-existing for many years now.

Also, in the Itunes store, Apple is selling movie rental streaming and movie for download.

atrlster

CD and Downloads target different demographics though.

Movies are a whole different animal. People really don't watch movies more than once or twice, and rental streaming is the next evolution of rental practices from like Blockbuster/RedBox

If Apple promoted streaming and downloads concurrently, there would definitely be cannibalization.

Dust2

http://www.billboard.biz/bbbiz/indus...08090182.story

Quote:

Led by gains in subscription revenue, Norway posted a 7% increase in total music revenue in 2012, according to IFPI Norway data. Whether or not other countries can expect similar gains will be up for debate.

Norway's streaming revenue grew to 226% to 189.2 million kroner ($34 million), while downloads grew 6% to 88.7 million kroner ($15.9 million). Album sales, which comprised nearly all of physical revenue, declined 20% to 200.6 million kroner ($36 million). In total, revenue grew 37.1 million kroner to 545.3 million kroner ($98 million).

Subscription streaming: $34 million
Other Streaming: ?
Downloads: $15.9 million
Album Sales: $36 million

http://www.musicweek.com/news/read/n...-report/053150

Quote:

Of total sales, streaming accounted for 45% in 2012 (compared to 32% in 2011), downloads claimed 16% (compared to 17% in 2011) while physical sales counted for 39% (compared to 51% in 2011).

“This is the first time we see an increase in music sales since 2004 and 7% is a solid increase,” said IFPI Norway CEO Marte Thorsby. “Streaming has grown from 13% of the total sales in 2010, 32% of the total sales in 2011 and now counts for 45% of the total sales. And I do not think the top is reached."

Streaming: 45%
Download: 16%
Physical sales: 39%

http://www.digitalmusicnews.com/perm...30108streaming

Quote:

Actually, more than quadrupled. Which is quite astounding considering that most Americans had no idea that Spotify or Muve even existed two years ago. Muve Music was just getting started in early 2011, and Spotify crossed the Atlantic in July of the same year. Fast-forward to 2013, and both have a collective subscriber group of about 2.3 million, with Rhapsody tossing an extra million into the pot.
Which means that paid subscribers have more than quadrupled over the past 24 months, a growth rate of roughly 340%. Which looks like this, according to public disclosures by the companies.

Quote:

Of course, paid downloads from places like iTunes and Amazon are also increasing, though the idea that one is feeding the other is looking increasingly misguided.

dperkins

Quote:

Originally posted by atrlster

I can't see Apple getting into the streaming market yet. At least until they figure out how to differentiate it from the other streamers. And how could they market that concurrent with downloads? Everyone would just flock to the streaming lol

Every iPhone comes with iStream and you can stream so much for free before you have to pay. And each monthly payment comes with 1 free download along with every song you stream having a "buy it now" tag.

Dust2

http://musically.com/2012/07/13/spot...-ifpi-figures/
Spotify helps Swedish music sales rise 30.1% in first half of 2012

Quote:

Overall music sales increased by 30.1% year-on-year in the first half of 2012 to SEK 446m (around $63.5m), with digital music accounting for 63.5% of all music sales.

So, while physical revenues fell by 2.2% in the first six months of 2012, digital revenues were up 60.5%. Streaming revenues rose 79.4% to SEK 252.7m ($40m), while ‘other’ digital revenues (i.e. downloads) fell 14% to SEK 30.7m ($4.4m).

First 6 Months of 2012:

Streaming: $40 million (up 79%)
Downloads: $4.4 million (down 14%)

It's safe to say that in Sweden, music streaming is about 10-14 times bigger than downloads (today). It was 9 times bigger 6 months ago.

Katy V.!

So the music market is increasing on Spotify's biggest markets?

Dust2

Quote:

Originally posted by Katy V.!

So the music market is increasing on Spotify's biggest markets?

Subscription will make the music industry the most money. And they are counting on it.

Good news is that in the USA, on-demand subscription music is at around 4 million in the USA alone, dominate by 3 Major Players

-Muve Music with over 1.1 million paying subscribers
-Rhapsody at 1 mil +
-Spotify at 1 mil +

And several smaller ones like MOG, Rdio, XBOX Music, Sony Music Unlimited.

Internet Radio Pandora has about 1.7 million paying subscribers but it is not on-demand subscription.

Dust2

This could pave the way for the future....

Paying $5 instead of $10 IF YOU BUNDLE IT with your phone services.

http://www.billboard.biz/bbbiz/indus...08101232.story

Business Matters: Rhapsody Shows Subscription Services Can Cost $5 Per Month

Quote:

Subscription services don't always have to cost $10 a month for unlimited, mobile music. Case in point: the price of the Rhapsody on-demand music subscription service added to a MetroPCS plan just dropped to $5 from $10 a month.

A Rhapsody spokesperson explained to Billboard.biz that the original MetroPCS-Rhapsody bundle was offered on only on one plan. Now Rhapsody is available as an additional option - as are options such as call forwarding and a ringtone subscription -- with all of MetroPCS's $40, $50 and $60 pay-as-you-go smartphone plans.

Quote:

Available now, MetroPCS customers can add Rhapsody for $5 to its newly simplified $40, $50 and $60 monthly smartphone plans.

Case in point. Cricket Wireless has 5 million users in the USA. And of these 5 million users, 1.1 million of them are using Muve Music subscription music service. If it is bundled with a phone service, the music labels are okay with it being cheaper ($5 instead of $10).

Dust2

I will keep this thread updated on any developments in the on-demand subscription market.

http://www.billboard.biz/bbbiz/indus...08102222.story

Quote:

To see the future of music, look to Scandanavia. Streaming services helped the Swedish recorded music market grow 13.8% to over 943 million Swedish kronor ($144.8 million) in 2012, according to IFPI Sweden figures released Friday.

Digital revenue accounted for 64% of total recorded music revenue, up 12% from 2011. Streaming services such as Spotify accounted for 90% of all digital revenues, up from 82% in 2011. CD sales declined 15%.

Scandinavia is where the music industry's vision for the future is best taking shape. The gains seen in Sweden are similar to 8% gain in 2012 the IFPI Norway just announced. Both markets are being led by subscription services such as Spotify and getting more than enough growth from subscription revenues to offset losses in CD sales.

Sweden music market total: $144.8 million (100%)

Spotify: $83.4 million (57.6%)
Itunes/Amazon/Google download: $9.27 million (6.4%)
CD: $52.1 million (36%)

The scary thing is that both CD and download are decreasing each passing year in Sweden while subscription is increasing.

Hooligan

Quote:

Originally posted by ManDown

Wow! It's great that everything is increasing. Imagine all of the illegal downloads that were stopped by Spotify and Pandora.

I really don't even think about illegal downloading now that I have Spotify. There are rare cases where I may how to download some things but for the most part, Spotify has eliminated the need to illegally download.

Taylor fanboy

Good for the music industry!

Bad for Taylor Swift's Label CEO

He can sit