The music industry is benefitting from music streaming services—and listeners may even be ready to pay for them.
Last year, revenues from streaming music services grew 39% to hit $1.4 billion, according to data released in March 2014 by the Recording Industry Association of America (RIAA). This growth pushed streaming’s share of total US music industry revenues—$7.0 billion—to 21%, compared with 15% in 2012. Digital music also benefitted, rising 7.7% to $4.4 billion, or 64% of the overall US music market, and streaming accounted for about 31.8% of that total.
RIAA found that consumers were more willing to pay for subscriptions to streaming services last year—maybe because they were tired of advertisements, maybe because they wanted all of the other benefits many subscriptions offer, or maybe both. No matter the case, paid subscription services were the fastest-growing digital music format, up 57% year over year to $628 million.
Figures released in March 2014 by the International Federation of the Phonographic Industry (IFPI) suggest that digital music revenues worldwide grew at a more modest pace of 4.3%, totaling $5.87 billion and accounting for 39% of global music revenues.
However, IFPI’s subscription music streaming revenue numbers were more in line with RIAA’s, with the former reporting growth of 51.3% in subscription streaming revenues worldwide—pushing the format’s revenues above $1 billion for the first time. IFPI found that 27% of digital music revenues worldwide came from subscription and ad-supported music streaming services.
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