Industry Experts Say Music Streaming, Vinyl Not Competitors

Although streaming may be hastening the end of the CD, it’s actually helping sales of vinyl. The Recording Industry Association of America (RIAA) reported this year that 75 percent of the music revenue in the country comes from streaming services such as Apple Music and Spotify. At the same time that CD sales have plummeted, vinyl sales have risen $2 million per year over the last three years. At a Making Vinyl conference in Detroit, experts said that streaming and vinyl are not competitive, but rather complementary. Continue reading Industry Experts Say Music Streaming, Vinyl Not Competitors

Spotify Offers Direct Licensing Deals to Managers, Indie Acts

Spotify is offering some managers and indie music acts a new arrangement: Management firms can receive “several hundred thousand dollars” as an advance fee for licensing “a certain number of tracks” of their indie artists directly to Spotify. In addition, in some cases, the managers and acts will earn 50 percent of the revenue of those songs per stream. In comparison, major-label artists and their management teams usually get 20 percent to 50 percent of the label’s share and don’t own their master recordings. Continue reading Spotify Offers Direct Licensing Deals to Managers, Indie Acts

Study: Streaming Music Services Continue Worldwide Growth

According to a new report from MIDiA Research and digital media association DiMA, 2017 marked the third consecutive year of revenue growth for streaming music and subscription services. Worldwide recorded music revenue increased from $16 billion in 2016 to $17.4 billion last year. Streaming revenues reached $7.4 billion, representing 43 percent of all revenue. Meanwhile, legacy music formats — including downloads and physical albums — dropped by $783 million. Streaming music subscriptions experienced significant growth in the U.S., up 63 percent from 2016 to $4 billion in 2017. Continue reading Study: Streaming Music Services Continue Worldwide Growth

Spotify Readies New Free Version, Acquires Licensing Platform

According to sources, Spotify is working on a version of its free music service that would be easier to use on mobile phones. The rationale is likely that, after just going public, the Stockholm-based company now needs to grow its user base. The free service is also a springboard for the company’s paid service, which, although services less than half of its user base, generated 90 percent of last year’s 4.09 billion euro revenue. By the end of 2017, Spotify had 157 million users, of which 71 million were paid subscribers. Continue reading Spotify Readies New Free Version, Acquires Licensing Platform

Spotify Launches New Tool, Enlisting Users to Add Metadata

Spotify has launched Line-In, a music metadata editor, and has begun collecting information from users, who are now able to add descriptions of genres, albums and songs on the platform. The move is an effort by the streaming service to better understand how listeners hear and interpret music — and to continue emphasizing the importance of data to its business. All contributed edits are treated as suggestions and are carefully reviewed before being added to the data that powers the service. The 10-year-old Swedish company is about to go public via a direct listing rather than a traditional IPO.

Continue reading Spotify Launches New Tool, Enlisting Users to Add Metadata

Best Buy to End CD Sales, While Target Adjusts Sales Model

Physical CDs are still selling well, although the U.S. has seen sales down by 18.5 percent. But Best Buy and Target have just taken steps that may hasten the demise of physical media. Best Buy, which was once the biggest music seller in the U.S., has told its music suppliers that it plans to pull CDs from its stores on July 1. The company will continue to carry vinyl records for two years, fulfilling a promise made to vendors. Meanwhile, Target is now telling music suppliers it will sell CDs on a consignment basis. The move would also impact sales of movies, TV shows and other video content on DVD. Continue reading Best Buy to End CD Sales, While Target Adjusts Sales Model

YouTube Introduces Plan to Unify Artists’ Disparate Channels

YouTube debuted plans to streamline its service by consolidating artists’ channels. In doing so, it will combine separate channels for live albums, music videos, live performances, single songs and complete albums to a single site. Among YouTube’s many music partners, the new plan will especially impact Vevo channels where Official Artist Channels, marked with a musical note, will be the first thing a user sees in search. Channels can still be accessed with YouTube’s advanced channel filter in search. Continue reading YouTube Introduces Plan to Unify Artists’ Disparate Channels

Pandora Hopes to Convert Users with Free On-Demand Music

Pandora Media is launching free on-demand music with 15-second ads, in an effort to boost declining revenue and users. In doing so, it inches closer to rival Spotify’s model. According to one source, the user will be able to queue up 15 minutes, 30 minutes or an hour of specific songs for every ad watched; the company is still testing models that mix music and ads. By offering free songs in exchange for ads, Pandora hopes to entice listeners to sign up for its $9.99 per month Premium on-demand tier, which was introduced in March. Continue reading Pandora Hopes to Convert Users with Free On-Demand Music

Taylor Swift’s Album Debuts on CD, Not Streaming Services

Taylor Swift is releasing her sixth album, “Reputation,” on CD, rather than any streaming service, say sources, who suggest that the streaming “blackout” could last one or two weeks. Swift and her label Big Machine Records have declined to be more specific, but an initial streaming blackout would be in line with Swift’s last album, “1989,” which when it was released in 2014 took seven months to reach streaming services, including Spotify, Apple Music and others. Now, “1989” streaming sales dominate over downloads and CDs. Continue reading Taylor Swift’s Album Debuts on CD, Not Streaming Services

Nielsen Reports Major Jump in On-Demand Audio Streaming

According to Nielsen, on-demand audio streams — including music, podcasts and spoken word recordings — reached a new milestone for the U.S. market when the figure reached 7.5 billion during the week ending March 9. In its latest mid-year report, the measurement firm indicates that 184 billion on-demand audio streams this year mark a significant 62.4 percent increase over the same period last year. In addition, there has been more than 284 billion on-demand audio and video streams combined this year, a 36.4 percent jump over the same period in 2016. Continue reading Nielsen Reports Major Jump in On-Demand Audio Streaming

Spotify Signs New Universal and Merlin Deals, Preps for IPO

Spotify will pay music labels more than $2 billion in minimum payments over the next two years. The company’s revenue has grown more than 50 percent, to $3.3 billion last year, so the big deals are a means to keep growing. Sources say the company has inked two deals recently, with Universal Music Group, the world’s biggest music label, accounting for one-third of the market, and Merlin, which represents a group of independent labels. The Wall Street Journal previously reported that Spotify plans to go public this year. Continue reading Spotify Signs New Universal and Merlin Deals, Preps for IPO

Streaming Music Surpasses Digital Downloads for First Time

According to Nielsen, streaming officially became the primary means of consuming music in the U.S. during 2016. “Overall on-demand audio streams surpassed 251 billion in 2016 — a 76 percent increase that accounts for 38 percent of the entire music consumption market,” reports Pitchfork. For the first time, on-demand audio streaming has surpassed sales of digital albums + digital track equivalents. An average day saw 1.2 billion streams, compared to a total of 734 million downloads for the entire year. Rock is the most popular genre, representing 29 percent of consumption (but only 20 percent of streaming), while hip-hop and R&B make up 22 percent of total consumption (but an industry-leading 28 percent of streaming).

Continue reading Streaming Music Surpasses Digital Downloads for First Time

Music Industry Contends with Major Uptick in Counterfeit CDs

Despite shifts in music consumption involving streaming services, Internet radio, digital downloads and more, many consumers are still purchasing CDs. However, the revenue does not always reach the artists and labels responsible for the music, since piracy is running rampant in the form of counterfeit CDs offered through online retailers such as Amazon. Counterfeits are becoming increasingly difficult to distinguish from the official versions. While CD sales represented a mere 13 percent of revenue for U.S. labels the first half of this year, they accounted for almost 40 percent of global revenue for the recording industry last year. Continue reading Music Industry Contends with Major Uptick in Counterfeit CDs

Streaming-Only Recordings Now Eligible for Grammy Awards

The Recording Academy has announced new amendments to the Grammy Awards process. Among the changes, previously ineligible streaming-only releases will now be considered for recognition. Albums and singles previously had to be available for purchase, but the latest rule changes allow for streaming releases to be nominated. According to the press release, “Works must be released via general distribution, defined as the nationwide release of a recording via brick and mortar, third-party online retailers,and/or applicable digital streaming services.” Continue reading Streaming-Only Recordings Now Eligible for Grammy Awards

Apple May or May Not Put an End to iTunes Music Downloads

Depending on who you believe, Apple is either ready to “completely terminate” iTunes music downloads in as little as two years — or has no plans at all to shut down this still-valuable source of revenue. Even as streaming gains dominance, music downloading still plays a lucrative role, say some. Sources deep inside Apple revealed discussions about the potential timetable for ending music download offerings, with a possibility of staggered shutdowns beginning in the U.S., U.K. and some European and Asian countries. Continue reading Apple May or May Not Put an End to iTunes Music Downloads

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