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Music News: Streaming is now ~30% of recorded music revenue for labels
Member Since: 3/7/2011
Posts: 2,187
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Streaming is now ~30% of recorded music revenue for labels
There is a reason why Billboard changed its Hot 100 formula to include streaming (both on-demand and passive internet radio). This is USA data only.
opps. Keep in mind that 30% is a % of TOTAL DIGITAL REVENUE ONLY (doesn't include physical CDs revenue).
The title should be: Streaming is now ~30% of DIGITAL recorded music revenue for labels
http://www.billboard.biz/bbbiz/indus...08074862.story
Quote:
Based on those estimates, here are the shares of the digital revenue for each of the four categories:
- Tracks: 41.9%
- Albums: 30.7%
- Subscriptions: 13.1% ------(this is streaming from Spotify/Muve Music/Rhapsody/Mog/Rdio/Xbox Music)
- Performance revenues: 14.3% ---(this is streaming from SIRIUS XM, Pandora Radio, iheartradio etc..)
Streaming, which includes both subscriptions and performance revenue in this case, amounted to over 27% of RIAA member labels' revenue in 2012, according to these estimates. The streaming share of digital revenue is actually greater because the RIAA data does not include revenue from advertising-based, on-demand video services like YouTube and Vevo.
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With Youtube and VEVO added in 27.4% could increase to ~30%.
Subscription: 13.1%
Digital Performance: 14.3%
Youtube/VEVO: 2.6%
Total of streaming: 30%
Digital Performance Royalties:
SoundExchange is the non-profit performance rights organization that collects statutory royalties from satellite radio (such as SIRIUS XM), internet radio, cable TV music channels and similar platforms for streaming sound recordings. The Copyright Royalty Board, which is appointed by The U.S. Library of Congress, has entrusted SoundExchange as the sole entity in the United States to collect and distribute these digital performance royalties on behalf of featured recording artists, master rights owners (like record labels), and independent artists who record and own their masters.
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Member Since: 8/13/2012
Posts: 32,832
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But only digital though? physical sales of albums seem not included
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Member Since: 8/3/2012
Posts: 19,910
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Such a high number seems rather doubtful with the very low revenue each stream nets the labels, especially given that the #1 on-demand song usually garners less than a million streams... but I suppose it makes sense with the sheer volume of streaming services and songs available.
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Quote:
Originally posted by Brando
Not single sales bringing in more cash than album sales
I guess "singles artist" is not such a bad thing anymore.
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It's still far better to be an albums artist; 10 million copies of 21 would have brought many, many times more revenue than the 7 million copies sold of RITD, for example.
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Member Since: 10/16/2005
Posts: 16,872
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Quote:
Originally posted by Dust2
With Youtube and VEVO added in 27.4% could increase to ~30%.
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What about the whole debacle with record labels buying views on Youtube/VEVO?
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Member Since: 3/7/2011
Posts: 2,187
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Quote:
Originally posted by vuelve88
What about the whole debacle with record labels buying views on Youtube/VEVO?
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Easy explanation:
http://www.billboard.biz/bbbiz/indus...08059892.story
In the latest "de-spam," YouTube subtracted 1.5 million views from Sony and Universal's channels. That may sound like a lot, but it's just a fraction of the 1.3 billion it subtracted throughout its entire video library.
That leaves us with 1.9985 billion views still unaccounted for.
The answer comes in the second way that YouTube changed its view count. The company recently decided to remove view counts for videos that are no longer live on the channel, or so-called "dead videos." For Universal and Sony, that meant thousands of music videos that over the past three years slowly have migrated to the VEVO channel, which is jointly owned by the two companies. A senior label executive confirmed the migration.
In a strategic move, Universal, Sony and EMI in 2009 jointly put their music videos in the VEVO basket with the belief that by aggregating the videos, they could command better advertising rates as well as grow viewership.
That meant high-profile videos that once lived separately on the Universal and Sony YouTube channels have been relocated to Vevo. As a result, the views that those videos received during their time on the dedicated label channels were taken away in YouTube's latest "clean up" effort.
In other words, those views happened; they weren't "faked" or even double counted when they went on to Vevo. But because the videos are no longer on the channel, YouTube considers them "dead videos." They still live on in YouTube, just under a different channel
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Member Since: 5/5/2011
Posts: 16,846
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I don't think this is a good sign for album sales.
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Quote:
Originally posted by KevinKDC
I don't think this is a good sign for album sales.
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Of course not, we all knew that they would have declined even in 2011, if not for Adele. They're at a low point, but I feel as though they may recover at some point, to some extent - why would labels want the most expensive packaging they offer to dwindle into nothingness? They will try to recharge the albums market again at some point.
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Member Since: 3/7/2011
Posts: 2,187
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This should bode well for streaming:
http://www.digitalmusicnews.com/perm...30108streaming
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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.
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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.
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Member Since: 12/9/2009
Posts: 13,069
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Quote:
Originally posted by Retro Dance Freak
It's still far better to be an albums artist; 10 million copies of 21 would have brought many, many times more revenue than the 7 million copies sold of RITD, for example.
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If you are a singles artist you are presumably bringing in multiple hits, not just one; the gap isn't so big. Plus it's a lot easier to get a big hit than a diamond album nowadays. Times are changing!
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Member Since: 8/22/2010
Posts: 12,270
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I thought Streaming doesn't make that much money
So for it to now make up 30 percent of their revenue 
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Member Since: 3/7/2011
Posts: 2,187
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streaming should be at around 50% of total digital revenue in the very near future:
Look at the growth rate
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%.

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Member Since: 5/3/2012
Posts: 42,099
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Albums would sell more if the labels didn't crook people with the digital copies. I mean, they charge $16 for some of the albums when all you're doing is downloading it off of Apple's and Amazon's servers. At least you can see where the cost is going if you buy the physical versions.
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Quote:
Originally posted by Newt
If you are a singles artist you are presumably bringing in multiple hits, not just one; the gap isn't so big. Plus it's a lot easier to get a big hit than a diamond album nowadays. Times are changing!
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That's the point though; those who can bring in massive amounts of album sales on a regular basis, like Taylor Swift can in the US, are more valuable to the industry than those who get a few big hits per era. Even most singles artists very rarely reach 30 million singles sold in one album cycle; at $1.29 the gross revenue from that is about $39 million (before retailer fees and other expenses). However, an albums artist who crosses 5 million worldwide would bring in a gross revenue of about $50 million or perhaps more (also before other expenses). All in all, it would probably be better to be an Adele-type seller than a Rihanna or Katy sort of seller, financially speaking. Of course, that also brings into account which is easier on average to sustain for long periods of success- singles sales, or album sales?
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Member Since: 5/3/2012
Posts: 42,099
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Quote:
Originally posted by Retro Dance Freak
That's the point though; those who can bring in massive amounts of album sales on a regular basis, like Taylor Swift can in the US, are more valuable to the industry than those who get a few big hits per era. Even most singles artists very rarely reach 30 million singles sold in one album cycle; at $1.29 the gross revenue from that is about $39 million (before retailer fees and other expenses). However, an albums artist who crosses 5 million worldwide would bring in a gross revenue of about $50 million or perhaps more (also before other expenses). All in all, it would probably be better to be an Adele-type seller than a Rihanna or Katy sort of seller, financially speaking. Of course, that also brings into account which is easier on average to sustain for long periods of success- singles sales, or album sales?
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Not this shade  Rihanna's last album is approaching 4 million and Unapologetic will pass 2 million soon.
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Quote:
Originally posted by liberalmusiclover
Not this shade  Rihanna's last album is approaching 4 million and Unapologetic will pass 2 million soon.
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It's not shade, it's a pretty well known fact that she sells far more singles.  I didn't say she was a bad albums seller either, I simply noted her with another person who sells a very high volume of singles - if you didn't notice, the other girl has an album approaching 6 million. 
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Member Since: 5/3/2012
Posts: 42,099
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Quote:
Originally posted by Retro Dance Freak
It's not shade, it's a pretty well known fact that she sells far more singles.  I didn't say she was a bad albums seller either, I simply noted her with another person who sells a very high volume of singles - if you didn't notice, the other girl has an album approaching 6 million. 
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That's after 3 years though  Rihanna does that in a year 
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ATRL Senior Member
Member Since: 3/22/2012
Posts: 53,769
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Quote:
Originally posted by liberalmusiclover
That's after 3 years though  Rihanna does that in a year 
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With two out of six releases, mind you. (Not counting the unfinished current era)
I don't know why it matters anyway, since both are some of the better album sellers. I was just comparing them to Adele because they're the best singles sellers right now. 
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Member Since: 2/6/2010
Posts: 27,892
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That doesn't surprise me. I mean, I don't ever see myself paying for a service like this, but I see the appeal for casual listeners.
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