Archive for the 'music streaming' Category


Music Majors in the Streaming Economy: Warner Music Group

In its last annual report Warner Music Group (WMG) exhibited a total revenue of US $3.58bn – the highest since the recorded music company was sold by Time-Warner to the Investor Group in 2003. Although overall costs also increased to US $3.15bn (WMG 2017: 38-39), the operating income is remarkably high with US $222m (WMG 2017: 40) especially compared to the disastrous results of the early 2000 years with annual losses of about 1 billion US$. The main driver of the revenue growth is the music streaming boom. In the recorded music segment streaming revenue increased by US $434m to US 1.34bn in the fiscal year ending on September 30, 2017. The music publishing segment contributed a further increase of US $58m of streaming revenue (WMG 2017: 36). Thus, WMG earned almost US $500m more with music streaming in 2017 compared to 2016. The further analysis highlights how the music major’s business model has shifted to the music streaming economy.

Continue reading ‘Music Majors in the Streaming Economy: Warner Music Group’


Artists in the Music Stream – A Case Study

On 24 January 2018 the Latin superstar Enrique Iglesias filed a lawsuit against Universal International Music for “systematically underpaying streaming royalties” (complaint, Enrique Iglesias vs. Universal International Music, January 24, 2018). The lawyers of Iglesias argue that Universal Music should have paid 50 percent of the net revenue from the streaming services. Instead Iglesias was paid just a fraction of the royalties according to the rate agreed for physical and download albums. This remarkable case sheds light into the contractual practices in the recorded music industry and helps to explain, why artists contracted to record labels does not really benefit from the music streaming economy yet.

Continue reading ‘Artists in the Music Stream – A Case Study’


Music Business Research 2017 – in retrospective

Dear readers of music business research blog,

The music streaming boom dominated 2017. Market statistics highlight that music streaming revenue has become the most important income stream for the phonographic industry. The US figures for 2016 highlight a tremendous shift from selling music (CDs and downloads) to accessing music (by streaming services). In the US, music consumers paid for the first time more for music access by ad-supported and paid streaming services (US$ 3.9bn) than for CDs, music downloads and ringtones (US$ 3.5bn). In the UK, the massive growth of music streaming revenue also increased overall recorded music sales in 2016. Gains of £103m in the music streaming segment, thus, compensated not just for the loss of £5.8m of physical sales, but also for the £56m decrease in download sales in a year-to-year comparison, as a long-term analysis of the UK recording sales indicates. We can, thus, expect a further massive growth of music streaming revenue in 2017 also on markets with a still strong physical segment such as Germany.

Continue reading ‘Music Business Research 2017 – in retrospective’


The Economics of Music Streaming – Book presentation & Panel Discussion

In collaboration with the Austrian and Viennese Chamber of Commerce an additional event of the 8th Vienna Music Business Research Days 2017 wil take place in Gewerbehaus of the Austrian Chamber of Commerce (3., Rudolf Sallinger Platz 1) on September 13 from 19:00-21:00. After the book presentation “The Economics of Music” by Peter Tschmuck, Peter Jenner (Sincere Management, London), Sally Gross (University of Westminster, London), Hannes Tschürtz (ink music, Vienna) and Alexander Hirschenhauser (VTMÖ – Austrian Indie Label Association, Vienna) discuss on “The Economics of Music Streaming – Revenue Streams for Musicans and Music Producers from Spotify & Co?

Entrance is free, please register here: Austrian Chamber of Commerce (WKO)


The Economics of Music Streaming – Revenue Streams for Musicans and Music Producers from Spotify & Co?
September 13, 2017
Große Dachterrasse
Rudolf Sallinger Platz 1, 1030 Wien


in collaboration with  Bildergebnis für WKÖ logo      and       Bildergebnis für wirtschaftskammer wien




The Economics of Music Streaming: Spotify

2016 is the pivotal year for the music streaming industry. After years of growth, we can expect a market consolation for the new few months with mergers, acquisitions and insolvencies. Thus, the question arises which music streaming services will survive that consolidation process. I try to assess who will be the winners and losers by analysing the financials of several music streaming companies. In the first part of this series I examine the global market leader in the music streaming market, the Swedish music streaming company Spotify.

Continue reading ‘The Economics of Music Streaming: Spotify’


The Music Streaming Market Revisited, 2011-2015

Last year, I posted an analysis of the international music streaming for 2014 based on IFPI numbers. Since then the global streaming market was highly dynamic and therefore I updated my analysis and included also earlier data. In 2015 the global streaming revenue (subscriptions and ad-supported streaming revenue) increased by 42.5 per cent (IFPI 2016: 17) and had a volume of US $2.89bn. The music streaming market is almost as big as the music download market (US $2.97bn) (IFPI 2016: 49). Music streaming, therefore, accounts for 42 per cent of the global recorded music market. However, the market share of music streaming differs between countries. Whereas in Sweden the music streaming market share is 66.5 per cent of the overall recorded music market, in Germany just 11.4 per cent of the recorded music revenue comes from music streaming sources. And Japan, the second largest recorded music market in world, lags behind with meagre 4.6 per cent. In the following, please read an analysis of the international music streaming for the time-span from 2011-2015.

Animation of the international music streaming markets, 2011-2015

Continue reading ‘The Music Streaming Market Revisited, 2011-2015’


6th Vienna Music Business Research Days, Sep. 29 – Oct.1, 2015

VMBRD-logoThe 6th Vienna Music Business Research traditionally start with the Young Scholars’ Workshop in the Large Conference Room of the Institute for Cultural Management and Cultural Studies (IKM) at 9:00am on September 29, 2015. Graduate and PhD students from Brazil, Ecuador, Germany, Hungary, Norway and Poland will present their theses in a closed workshop to highly regarded music business/industry research who will comment on and discuss the papers.

The second conference day on September 30, will be devoted to academic music business research in Joseph Haydn-Hall in the main building of the University of Music and Performing Arts Vienna from 9:00am to 18:00pm. Scholars from the Australia, Austria, China, Brazil, Germany, Iran, the Netherlands and Spain will highlight current results of their reseach on the music business/industry.

“Financing Music in the Digital Age” is the main topic of the third conference day in Joseph Haydn-Hall of the University of Music and Performing Arts Vienna  from 9:00am to 17:00pm on October 1. The conference day will be opened at by Dagmar Abfalter (University of Music and Performing Arts Vienna) with a paper – co-authored by Serge Poisson-de Haro (HEC Montreal) – answering the question is “Opera Streaming a New Revenue Source?” . In the following panel discussion – conducted by Dagmar AbfalterLuke O’Shaughnessy (The Oper Platform, Brussels), Christof Papousek (Cineplexx International GmbH, Vienna), Christopher Widauer (Vienna State Opera) and Robert Zimmermann (Berlin Phil Media GmbH of the Berlin Philharmonic Orchestra) will discuss on “The Economic Relevance of Classical Music Streaming” from 10:15-11:15.

Before lunch – from 11:45-12:30 – Kieran Garvey, Policy Programmes Manager and Research Associate at the Cambridge Centre for Alternative Finance, will highlight the role of “Alternative Financing of Music” with a special focus on music crowfunding.

After lunch – from 14:00-14:45 – start-up entreneur Andreas Mahringer and business “angelina” Selma Prodanovich will unveil the processes and structures behind start-up funding in a case study on the Viennese-based music start-up Record Bird.

Andreas and Selma will then participate in the following panel disuccion – conducted by journalist Jakob Steinschaden – on “Music Start-up Funding in the Digitized Music Economy”. The other panelists are Michael Breidenbrücker (co-founder of LastFM; speedinvest, Vienna and London) and Peter Jenner (Sincere Management, London).

The conference will be closed with awarding the best paper of the Young Scholars’ Workshop in Joseph Haydn-Hall of the University of Music and Performing Arts Vienna at 17:00 on October 1, 2015.


Find more details on the conference program here:


The conference day on October 1 will be audio live-streamed here: and please follow us on Twitter and Facebook.


Tickets for passive participation of EUR 40.- are available on Ticketgarden:

The tickets are also valid to visit the Waves Music Conference that also take place at University of Music and Performing Arts Vienna on October 1, 2015.


Conference site & how to get there

Ticketing and conference accomodation


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