The question if streaming is the next big thing for the music industry will be eventually answered by the music consumers. Several studies were conducted in past few years – most of them commissioned by music industry bodies – to assess the future potential of music streaming. It is essential for music streaming services and the copyright holders (labels and music publishers) if consumers are aware of streaming services, if they are using them frequently and if they are prepared to convert from Freemium to subscription models. Therefore the results of the studies are important indicators for the future development of the music industry. Although they provide different and even contradictory results – due to a different methodology – they help us nevertheless to understand music consumption behaviour in the digital age. In the following I would like to review some of the studies published in the past three years.
Posts Tagged ‘music streaming
Tags: ad-supported streaming, audio-only streaming, brand awareness, brand knowledge, consumer study, digital music market, freemium, music consumer, music consumption behaviour, music streaming, music subscription, music user, music video website, Spotify, willingness to pay, YouTube
Tags: Artists revenue project, Atoms for Peace, Damon Krukowski, digital sales, Ellen Shipley, Future of Music Coalition, Galaxie 500, income of musicians, music royalty, music streaming, Pandora, physical sales, royalties, SoundExchange, Spotify, Spotify (UK) Ltd., streaming revenue, streaming services, Thom Yorke, webcasting, YouTube, Zoë Keating
In mid of July 2013 Radiohead frontman Thom Yorke caused for controversies when he pulled his song catalogue and those of his band Atoms For Peace from music streaming service Spotify. His straight forward argument was as cited in The Guardian that “new artists get paid fuck all with this model”. Several artists take the same line as Yorke. The co-author of the Belinda Carlisle hit “Heaven is a Place on Earth”, Ellen Shipley, complained that the royalty paid by Pandora to her for more than 3m plays was US$ 40. She accused Pandora, Spotify, YouTube and Google for “(…) the meager, insulting, outrageous amount of money songwriters are being paid” according to Business Insider. In fact some big names are not available on Spotify: The Beatles, AC/DC, The Eagles, Garth Brooks, George Harrison.
Thus, the question arises if and how music streaming services can be valuable for artists? In the following I would like to highlight the pros and cons of music streaming services form an artists’ perspective.
Tags: Access Industries, ad-supported, Apple Inc., Beats, Beggars Group, Bertelsmann Music Group, Charles Caldas, Daisy, Deezer, download revenue, EMI, freemium, iHeartRadio, indie labels, initial public offering, IPO, iTunes Radio, Kleek, major labels, Martin Mills, Merlin, music streaming, music subscription, Pandora, rdio, royalties, Sirius XM, Sony Music Entertainment, SoundExchange, Spotify, streaming revenue, Tim Westergren, UMG, Universal Music Group, Warner Music Group, WMG, XL Recordings
The Beggars Group chairman, Martin Mills, recently told the Guardian that “(…) 22% of the label group’s digital revenues came from streaming – and that the majority of its artists earn more now from track streams than track downloads” in 2012. Though the article does not report absolute figures, the revenue can be considered rather high with a roster including Adele, Jack White and The xx.
A member survey of the global rights agency Merlin representing more than 20,000 indie labels including Beggars Group/XL Recordings, Rough Trade, Naïve, Tommy Boy, Cooking Vinyl and Naxos unveils that “92% of respondents saw streaming and subscription revenues grow between 2011 and 2012, with a third enjoying increases of more than 100%” as recently reported by Musicweek. The same study shows that 24% of indies across the world and 30% of European indies generated more income from streaming than downloads in 2012.
These figures suggest that music streaming seems to be a promising revenue source for record labels. In the following the economic potential of music streaming and the underlying business model are analysed from the record labels’ perspective.
Tags: ad-supported, All Access, Amazon, Apple, Cloud Drrive, Cloud Player, Deezer, freemium, Glenn Peoples, Google, Hulu, iCloud, Internet radio, iTunes Match, iTunes Radio, LastFM, Mark Mulligan, music downloading, music licensing, music streaming, Play Music, premimum subscription, Simfy, Slacker, Soundcloud, Spotify, Spotify (UK) Ltd., Spotity AB, subscription, TapeTV, Vevo, Vimeo, webcaster, Xbox Music, YouTube
The music streaming market is currently the most dynamic segment in the music industry. The market entry of Apple with iTunes Radio and Google with All Access underpin the relevance of music streaming. It is just a question of time when Amazon will announce the launch of its rumoured music streaming service. Google, Apple & Co., however, enter a highly contested market. In the relatively small Austrian music market, eight streaming operators offer their services to the consumers (IFPI Austria 2013: 13) – not counted are the myriads of Internet radios, video streaming platforms such as YouTube, TapeTV, Vimeo and Hulu as well as the cloud-based music services of Amazon, Apple and Google.
Tags: access model#, ad-supported streaming, digital music market, German recorded music market, mobile music market, music download, music streaming, music subscription, ownership model, physical sales, SoundExchange, Swedish recorded music market, US recorded music market
After years of recession optimism is back in the phonographic industry. In the current Recording Industry in Numbers by the International Federation of the Phonographic Industry (IFPI 2013) the first but small increase of 0.9 percent in global recorded music sales were reported since 1999.The decreases in CD sales and in other physical formats could be compensated by increases in digital music sales. The revenue streams of music streaming services seem to play a crucial role in the recovery. Spotify, Deezer & Co. report annually growing number of users, which makes streaming the fastest growing segment in the phonographic market.
In a series of blog posts entitled “Is Streaming the ‘Next Big Thing’?” I would like to highlight the boom of music streaming services and their business models. But I also ask whether and how labels and publishers as well as artists benefit from the growing streaming music market. In part 1 the development of the digital music market in different countries with special regard to the music streaming market is analysed in detail.
Tags: Aboriginal music, Andrea Schurmann, Australian music business, Breda McCarthy, chart analysis, content provider, David Salisbury, digital music, experience economy, file sharing, Gianna Moscardo, Guy Morrow, independent music, indies, indigenous music, Jordi McKenzie, Laurie Murphy, music, music branding, music copyrigh, music download, music festivals, music streaming, p2p music file sharing, Peter Tschmuck, Phil Graham, Philipp Peltz, Phlip Pearce, Ryan Daniel, Steven Campbell, tertiary music education, Torres Strait music
“Music Business and the Experience Economy” is the first book on the music business in Australasia from an academic perspective. In a cross-disciplinary approach, the authors deal with a wide-range of topics concerning the production, distribution and consumption in the digital age. The interrelationship of legal, aesthetic and economic aspects in the production of music in Australasia is also highlighted as well as the emergence of new business models, the role of music file sharing, and the live music sector. In addition, the impact of the digital revolution on music experience and valuation, the role of music for sports and branding, and last but not least the developments of tertiary music education, are discussed from different perspectives.
For a more detailed book review please click here for further reading.
Tags: Bertin Martens, clickstream data, digital music consumption, Joint Research Centre of the EU Commission, JRC, Luis Aguiar, music consumption behaviour, music download, music file sharing, music purchase, music sales, music streaming, NetView, p2p music file sharing
The Joint Research Centre (JRC) of the EU Commission recently published a study entitled “Digital Music Consumption on the Internet: Evidence from Clickstream Data” with remarkable results. The authors, Luis Aguiar and Bertin Martens, concluded that music file sharing as well as music streaming have a significant positive impact on legal music downloads. The study is based on Clickstream data from Nielsen NetView. The database contains all the clicks of 25,000 Internet users in France, Germany, Italy, Spain and the United Kingdom for the calendar year 2011. In the following the main finding “(…) that digital music piracy does not displace legal music purchases in digital format” will be further investigated.
Tags: CD purchases, copyright law, David Bahanovich, Dennis Collopy, digital music, file sharing, music behaviour, music collections, music consumption, music download, music experience, music ownership, music streaming, music use, p2p music file sharing, University of Hertfordshire, valuation of music
The study Music Experience and Behaviour in Young People is the third survey of its kind – after 2008 and 2009 – for 2011. After a presentation of the key findings of the study in the 3rd Vienna Music Business Research Days, it’s now an honour and pleasure to exclusively present the results of the current study on the blog. The 2011 study is based on a comprehensive online survey of 1,888 of 14-24 year olds across the UK. The main conclusion of the current research is “(…) that when it comes to music and young people, everything is different, and yet everything is still the same”; compared to 2008 and 2009.
The key findings of the 2011 study are:
- The computer is no longer their main entertainment hub.
- Digital music collections are still huge.
- Digital music collections still contain 50 percent “free” music.
- Ownership is still important.
- Music is no longer the most popular entertainment type.
- There remains a very clear “value gap”.
- The popularity of file sharing has changed significantly.
- The 14-25 years olds are prepared to pay for digital music.
- But there are still challenges for streaming music online.
- Digital music consumption is still complex.
- They have a clear understanding and grasp of what copyright law is.
Please read further if you want to know more about the research results.
Tags: Alexander Hirschenhauser, Alexander Roth, Bach Technology, Carsten Winter, Christopher Buschow, cloud music, Dagfinn Bach, Daniel Norgard, David Bahanovich, Dennis Collopy, departure, Glaucia Peres da Silva, Marius Carboni, Music DNA, music download, music streaming, new music distribution models, Patrik Wikström, Peter Tschmuck, Pinie Wang, PRS-for-Music, simfy.de, Steffen Wicker, Victor Gangl, Will Page
The second “Vienna Music Business Research Days”, which were held at the University of Music and Performings Arts Vienna from June 8-10, 2011, were devoted to “New Music Distribution Models”. Therefore, the economic potentials, which are involved in the new music distribution models, were highlighted. In addition, the impact of music downloading, music streaming and cloud-based music models on musicians and music consumers was also discussed.
Beyond the speeches and panel discussion with music industry experts, a young scholars’ workshop was organized the first time. PhD and master students presented the results of their research on “Innovations in Music Business” and discussed them with advanced academics in this field.
In the following summary of the second “Vienna Music Business Research Days” most of the speeches and discussion of June 8-9 can be downloaded in audio format, in printed version and as presentations.
On June 8th, the second Vienna Music Business Research Days on “New Music Distribution Models” will start at the University of Music and Performing Arts Vienna (Anton-von-Webern-Platz 1, 1030 Vienna). The main question, who profits from the new models of music distribution – downloading, streaming, cloud-music, will be highlighted from different perspectives by international music business experts until June 1oth. For the program, please visit our conference webpage, where you also can download the conference folder.
The panel discussion in the evening of June 8th on the question “Is Streaming the answer …?” (in German) as well as the whole conference day on June 9th will be live streamed on the Internet: mms://mms.mdw.ac.at/musikwirtschaftsforschung_live