The streaming audio market is beginning to take the perturbingly familiar shape of the download market, with one big player stealing all of the momentum and scale. And the debate about what streaming brings to the broader digital music market continues to divide the industry across ever deepening fault lines.
Global digital music revenue will rise 17.8 percent this year to cross the £5 billion ($7.8 billion) milestone, according to a new forecast.
Non-profit Soundexchange reported Internet radio royalties topped $1 billion since 2000, with profits picking up steam in recent years with the explosive popularity of Pandora and other streaming radio sites. For example, this quarter profits topped $108 million, up from around $15 million a quarter in 2004.
Facebook’s problematic IPO has not only resulted in investor lawsuits and questions about the Nasdaq, it could have killed or postponed the IPO aspirations of Vevo and Spotify. Both companies have IPO aspirations, according to reports. And it makes sense one or the other would eventually consider going to the public markets.
There is hardly a shortage of trends to watch in digital music. From Internet radio to subscription services to a never-ending stream of services aimed at independent artists, 2012 will be filled with numerous developments that merit close attention.
Sony’s Music Unlimited cloud-based streaming digital music service has a new feature, dubbed My Channels, which is aimed at improving music discovery.
In a move that surprised no one, Lady Gaga came out the victor at MTV’s newly launched O Music Awards, taking home “Most Innovative Artist” and “Must Follow Artist on Twitter.”
Ovum forecasts that globally, revenues from music subscription services will increase at a compound annual growth rate of more than 60 per cent from 2011 to 2015, as consumers recognise the benefits of being able to access millions of streamed songs for the price of a CD every month rather than owning individual downloads. Subscription growth will also be driven by technology giants Apple and Google which are expected to launch cloud-based digital music subscription services this year.