Music streaming is a trend that’s booming — Really?
Looking at the trends in music, you’ll notice that the industry is divided. Many companies are still holding onto old solutions of getting media to the masses. This includes terrestrial radio stations, top 40, and physical compact discs, singles, and more. While there are still those that purchase music in this manner, a growing sector the population is no longer purchasing anything outright. They are instead streaming. In order for the music business to continue to make money, one must focus on the metrics that music streaming is showcasing. If artists and labels do not use music streaming, they are going to miss out on quite a bit.
Highlighting Growth Cycles
Before breaking down some highlights of music streaming, consider old models of streaming and current music delivery. The market of music streaming is divided between subscription based providers, and individual contributing websites. For instance, internet radio, video streams, and podcasts are outside of the scope of streaming. Inside the cope of music streaming are the subscription based, ad supported avenues that support artists and labels with royalties.
If you’re going to reach the most users today, you’ll need to consider streaming music, especially when you start to recognize the numbers worldwide.
Music streaming revenue
Right now the revenue made from in-scope models such as ad supported, subscription services, and other methods within that banner is upwards of $5,7m in 2017. The growth expected on this type of delivery system is upwards of 14% and will no doubt reach more than double by 2021. That includes a penetration rate of 25% now and upwards of 31% in 2021.
As you break down the numbers, you’ll see that the old methods of market penetration are not getting the same kind of numbers. Even internet radio, video streams, and other options aren’t getting the same kind of influence. While the market can shift, you’ll find that within the demographics, ages 25 – 34 influence upwards of $395 million in revenue.
Looking at just this small data analysis, you’ll find that the outlook for streaming and digital means will only grow in time. Between 2015 and 2021 expect strategic growth across revenue, market penetration and much more.