Whether music or podcasts, on-demand listening is the greatest change to recorded music in the last decade. Yet satellite radio — launched before iTunes revolutionized how music is purchased — continues to thrive as streaming services flourish. SiriusXM’s 2019 earnings report, which dropped Tuesday, shows that the satellite radio service added 1 million subscribers and grossed $7.8 billion of revenue over the year.
It’s been less than a year since SiriusXM completed its $3.5 billion acquisition of streaming music service Pandora, but the two companies have already leveraged their collective assets to boost each other’s services.
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.
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More changes are coming to Pandora, following the $3.5 billion acquisition by SiriusXM last year. The company today launched a new station called Pandora NOW, powered by Pandora listener data, which is available across both Pandora and SiriusXM. On Pandora, the new experience will appear as an interactive station and playlist, while SiriusXM subscribers will be able to access Pandora NOW on Channel 3.
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.
Music streaming continues its ascendance, with the number of paid streaming subscriptions on track to reach 235 million worldwide by the end of 2018, according to a new music market report from Futuresource Consulting.
The Music Modernization Act (MMA) is officially law. And, as evidenced by the musician-packed Oval Office from earlier this afternoon, that means a lot of things for a lot of different people. The former bill turned law ensures artists receive the compensation they are owed, encourages fair industry competition, and protects the intellectual property rights of studios nationwide—among other benefits.
SiriusXM said Monday that it is acquiring Pandora in a $3.5 billion deal that aims to create an all-encompassing digital audio offering that will reach some 100 million users in their vehicles, in homes and on mobile devices. During a call with investors this morning, Jim Meyer, chief executive at SiriusXM, said many potential new listeners try out the satellite radio service when they get a new or used vehicle, but often do not become paying subscribers.