Streaming Accounts for Nearly Two-Thirds of Music Revenue

According to a 2017 report from the Recording Industry Association of America, revenue for recorded music in the U.S. grew 16.5 percent last year to a retail value of $8.7 billion. “We‘re delighted by the progress so far,” explained RIAA CEO Cary Sherman, “but to put the numbers in context, these two years of growth only return the business to 60 percent of its peak size  —  about where it stood ten years ago  —  and that’s ignoring inflation.” Variety reports: “Like 2016, the boost came primarily from the rapid growth in paid music subscriptions to services like Spotify, Amazon, Apple Music, Tidal, Pandora and others, which grew by more than 50 percent.” Streaming represented nearly two-thirds of music revenue last year. Continue reading Streaming Accounts for Nearly Two-Thirds of Music Revenue

Paid Subs for Streaming Music Services Top 30 Million in U.S.

The music business is experiencing significant growth, thanks in large part to the increasing popularity of streaming services. According to RIAA’s midyear report, leading services such as Spotify and Apple Music currently have 30.4 million paid subscribers in the U.S. (up from 20.2 million the previous year). Streaming services are now responsible for 62 percent of total industry revenue, followed by 19 percent for digital downloads, 16 percent for physical sales, and 3 percent for synch rights. Continue reading Paid Subs for Streaming Music Services Top 30 Million in U.S.

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

SoundCloud Debuts Subscription Plan in U.S. with 125M Songs

Berlin-based SoundCloud, which began signing licensing deals with major and indie record labels in 2014, just debuted its new subscription plan. The online music service’s 175 million regular users will now have the option of the free version, which features 100 million songs, or the $10/month subscription version, SoundCloud Go, which offers 125 million ad-free songs, and lets users save songs to their phones. In 2014, SoundCloud posted $19.5 million in revenue, but a net loss of almost $44 million. Continue reading SoundCloud Debuts Subscription Plan in U.S. with 125M Songs

Rightscorp Signs Sony as Client, Continues to Combat Piracy

Rightscorp, a company that goes after people who illegally download songs, has just signed Sony/ATV Music Publishing as a client. The signing is a coup for the company, which despite having signed a few big clients, has been struggling on the verge of bankruptcy. In addition to Sony/ATV, Rightscorp also counts BMG and Warner Bros. among its clients. The company process is to scan the Internet for illegal downloads, using its proprietary algorithm to gather IP addresses, and then threaten those users with legal action. Continue reading Rightscorp Signs Sony as Client, Continues to Combat Piracy

CD and Download Sales Drop as Music Fans Turn to Streaming

According to the Recording Industry Association of America, less than $3.2 billion in music sales was recorded for the first half of 2014, a 4.9 percent drop from the same period last year. While the growth of online streaming services continues to generate revenue for artists and record companies, it may not be enough to offset the reduction in sales of CDs and downloads. While downloads and streaming together totaled $2.2 billion (a similar total to last year), downloads dropped by 9 percent. Continue reading CD and Download Sales Drop as Music Fans Turn to Streaming