Music streaming services such as Spotify and Apple Music now account for 80 PERCENT of the market
Streaming services such as Spotify and Apple Music now account for 80 percent of the American music market
- Streaming grew from seven percent to 80 percent of the industry in the 2010s
- There are currently 61 million paid subscribers for streaming music in the US.
- Spotify is the streaming leader with 113 million paying subscribers worldwide
The music industry in the US has been almost completely taken over by streaming services, which now account for 80 percent of total sales.
That is the conclusion of the Recording Industry Association of America, which has released a number of important insights and statistics from its upcoming year-end report on the state of music.
There are currently 61.1 million paid subscriptions to music streaming services in the US, a staggering increase of just 1.5 million in 2010.
Streaming services such as Spotify have taken over the music industry in the US, accounting for 80 percent of all revenues in 2019
Surprisingly, almost all of that growth came in the last four years, with more than 50 million new accounts added between 2015 and 2019.
The streaming market leader is currently Spotify, which announced earlier this year that it had 113 million paying subscribers worldwide and 248 million monthly active users.
This growth in music streaming has come at the expense of both physical retailers and digital download sales, both of which fell sharply, according to a story in Variety.
Sales of physical music fell from 52 percent of the US market in 2010 to just 9 percent in 2019.
Digital downloads fell from 38 percent to just nine percent in the same period.
The Recording Industry Association of America has followed the growth of streaming services, which was 40 times greater in 2019 than in 2010
At the same time, the sales charts were dominated by a small number of artists.
Eight of the ten best-selling albums of the decade came from just three artists.
Adele claimed the top two places with 21 as first and 25 as second.
Taylor Swift had the third, fourth and sixth best-selling album with 1989, Red and Speak Now.
Both digital downloads and physical album sales saw a huge decline between 2010 and 2019
Drake claimed fifth, eighth and tenth place with Views, Take Care and Scorpion.
The remaining two places were filled by Bruno Mars’s Doo-Wops & Hooligans and the soundtrack for Hamilton.
An unexpected area of growth came from the sale of vinyl records, which were nine times larger at the end of the decade than at the beginning.
A bright spot was the sale of vinyl records, which grew from $ 50 million in 2010 to $ 450 million in 2019
In 2010, sales of vinyl records generated around $ 50 million, while in 2019 it increased to $ 450 million.
Audiophiles and despite that, the streaming industry seems ready for even more growth in the future.
This summer, Spotify announced an ambitious new plan for a “Lite” service, which allows users to access this service through internet connections with low bandwidth.
The service was launched in 36 countries including India, Egypt, Algeria, Nicaragua, Lebanon, El Salvador, Honduras, South Africa and Indonesia.
WHAT ARE THE TOP MUSIC STREAMING SERVICES?
Online streaming services such as Spotify and Apple Music have become the largest source of income for the music industry and have caught up with physical sales and digital downloads for the first time.
The rapid growth of streaming music services in recent years has led to a recovery in the fortune of the global music industry, which enjoyed its third year of positive revenue growth, according to a report from industry association IFPI.
Online streaming services such as Spotify and Apple Music have become the largest source of income for the music industry
Last year, subscription-based streaming revenues accounted for 38 percent of all recorded music, an increase of 29 percent the year before, IFPI said.
Market leaders say that the rise of music streaming allows the market to reach new regions of the world, while helping a generation of music fans turn away from free or illegal music.
Latin America and China saw the largest market growth, with total music revenues up 17.7 percent and 35.3 percent respectively.