The investment bank’s ‘Music In The Air’ dossier, from August 2017, forecast a booming future for record labels, and set in motion a series of escalating valuations for Universal Music Group which have since hit $50bn (in the case of JP Morgan). In that report, Goldman forecast that trade revenues from paid streaming would reach $28bn by the year 2030, with the overall recorded music industry pulling in a whopping $41bn in the same 12 months.
Pandora is giving listeners more control over what songs their customized radio stations play with a new feature called Pandora Modes. Pandora’s classic algorithm has long chosen what plays when you start up a new artist station, but these alternative modes let you switch to other types of curation for different experiences. Modes work better the more you interact with the service while listening. Every thumbs-up or down on a song further informs what tracks Pandora will send your way.
Revenue from music-streaming platforms now accounts for three-quarters of the music industry’s top line, as subscriptions to services including Spotify Technology SA, Apple Inc., Amazon.com Inc. and others in the U.S. grew 42% in 2018 to top 50 million for the first time.
Fueled by tremendous creative output by groundbreaking artists and now more than 50 million paid subscriptions, the U.S. music industry experienced its third year of consecutive growth in 2018 with retail revenues up 12% to $9.8 billion. Streaming now comprises 75% of total industry revenues. Vinyl continues to be a bright spot for the physical market, up 8% to $419 million, the highest revenue level since 1988.
Amid an array of choice when it comes to platforms and devices for media consumption, one thing remains constant: Americans’ unwavering love for music. According to Nielsen, the music industry experienced significant overall growth in 2018, with total album equivalent audio consumption up 23% over 2017, driven by a 49% increase in on-demand audio song streams compared to last year.
According to Nielsen’s just-published data, the music industry experienced significant overall growth in 2018. Total album equivalent audio consumption grew 23% over 2017. This was driven by a 49% increase in on-demand audio song streams last year.
There are well over 500,000 podcasts in the world, covering everything from ABBA to zoology. They’ve reached such a saturation point, in fact, that there’s almost certainly a podcast out there that’s perfectly attuned to your interests—and no great way to find it. Streaming radio veteran Pandora thinks it has a solution in—what else, in 2018—an algorithm. Its Podcast Genome Project, first announced nearly a year ago, launches Tuesday in beta.
In the first half of 2018, overall on-demand streaming increased 41.7 percent to reach 403.5 billion U.S. streams, according to Nielsen Music. That growth defies mathematical trends, which dictate that, as a base enlarges, it becomes harder to achieve a bigger percentage growth than in preceding time periods.
2017 was a stellar year for the recorded music business. Global recorded music revenues reached $17.4 billion in 2017 in trade values, up from $16 billion in 2016, an annual growth rate of 8.5%. That $1.4 billion of growth puts the global total just below 2008 levels ($17.7 billion) meaning that the decline wrought through much of the last 10 years has been expunged. The recorded music business is locked firmly in growth mode, following nearly $1 billion growth in 2016.
The music industry is streaming forward. In 2017, we saw an astounding 63 percent increase in subscription streaming revenue.1 Both subscription and advertising-supported music services saw significant increases in revenue earned and royalties generated. Thanks to streaming, the industry is poised for sustained growth in the future. DiMA members