Mu­sic Stream­ing Rev­enues Surge

EME Outlook - - News -

On­line stream­ing ser­vices like Spo­tify and Ap­ple Mu­sic have be­come the record­ing in­dus­try’s sin­gle big­gest rev­enue source, over­tak­ing phys­i­cal sales of CDS and dig­i­tal down­loads for the first time.

The rapid growth in stream­ing mu­sic ser­vices in re­cent years has led to a re­cov­ery in the for­tunes of the global recorded mu­sic in­dus­try, which enjoyed its third year of pos­i­tive rev­enue growth, ac­cord­ing to a re­port by in­dus­try body IFPI.

Im­prov­ing fi­nances have led to a ten­ta­tive re-eval­u­a­tion of the mu­sic in­dus­try by stock mar­ket in­vestors, who had shied away from the strug­gling me­dia cat­e­gory for much of the past decade due to a wave of piracy by users and ma­jor tech­nol­ogy shifts.

Dur­ing April and early May this year, stream­ing mu­sic sub­scrip­tion leader Spo­tify, held a record-set­ting pub­lic stock of­fer­ing. France’s Vivendi, the owner of Uni­ver­sal Mu­sic Group, the world’s big­gest mu­sic la­bel, said last week it was mulling a stock mar­ket

list­ing of its wholly owned mu­sic unit.

Ten­cent Mu­sic En­ter­tain­ment (TME), which at­tracts three-quar­ters of China’s boom­ing mu­sic stream­ing mar­ket, has been re­ported by The Wall Street Jour­nal to be eye­ing a list­ing later in 2018. TME is con­trolled by in­ter­net gi­ant Ten­cent.

In­dus­try lead­ers say the grow­ing adop­tion of paid mu­sic stream­ing ser­vices is en­abling the mar­ket to reach new re­gions of the world while help­ing to wean a gen­er­a­tion of mu­sic fans away from free or pi­rated mu­sic.

“We es­ti­mate that only half the world’s pop­u­la­tion lives in a thriv­ing mu­sic en­vi­ron­ment and we want to bring the stream­ing rev­o­lu­tion to all of it,” Stu Ber­gen, from Warner Mu­sic Group, told reporters in Lon­don.

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