Yes, streaming has created recoveries in countries like Sweden and Norway. But its effect on the global market now appears limited, at best.
According to data just released by MiDIA Research, recorded music industry declines won’t level off until at least 2019. “The long term outlook is a story of revenue transition and incumbent revenue decline,” the MiDIA report bluntly assessed.
“Music industry revenues will bottom out, not grow. Physical revenue will decline by 44% by 2019 while streaming and subscriptions will help push download revenues down by 39% over the same period.”
And, things will bottom out only if streaming grows and matures beyond a niche-paying sliver. “Streaming and subscriptions are the great hope and are growing at unprecedented rates,” report author Mark Mulligan continues. “But the $9.99 products are not enough on their own, affordable mass market products are needed too. Without them revenues will shrink at pace and scale.“