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Tuesday, 9 April 2013

Music streaming

A few weeks ago The Economist has reported the most recent data about the music industry. The news is good: the bleeding has stopped and digital revenues are finally making up for lost CD sales. What is interesting though is what makes up the mix of digital revenues. The FT reports that while "iTunes-style" downloading still constitutes most of the $5.8 billion digital revenues, the share of streamed services revenues has grown to 20% from about 13% last year. The number of subscribers to these services grew to 20 million, a three-fold increase from two years ago. This is a substantial shift in consumer behavior and great news for Spotify and YouTube who were the fastest growing music streaming services last year. Interestingly they have wildly different business models: subscription-based vs. advertising supported, free service, respectively. If those YouTube videos manage to make it to the Google glasses, the world will definitely change. Quite exciting!

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