Streaming Music Is Now Worth $1 Billion Worldwide…

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The data, shared this morning with Digital Music News by global recording organization IFPI for the year 2013, shows the following:

1. Streaming revenue has now surpassed $1 billion worldwide, a year-over-year growth rate of 51.3 percent.

2. Digital downloads still account for 67 percent of all revenues.   In 2013, downloads started declining for the first time ever.

3. There are now 28 million paying subscribers of subscription streaming services, up from 20 million in 2012.

4. There is not yet one subscription or streaming service that is profitable.

5. Subscription and advertising-supported streams now account for 27 percent of all digital revenues, up from 14 per cent in 2011.

6. Subscription and advertising-supported streams still account for just 6.7 percent of the overall recorded music market.

7. Of that number, Spotify counts 6 million paying subscribers, Deezer 5 million paying subscribers, Muve Music has more than 2 million, and Rhapsody (including Napster) reports more than 1 million.  The remaining are unspecified.

8. Despite drops in downloads, the digital music market grew 4.3 percent, also worldwide.

9. The broader recorded music industry (which includes CDs, vinyl, downloads, and streaming) dropped 3.9 percent to $15.0 billion, worldwide.

10.  Revenues in Japan, recently ranked as the largest market in the world for recorded music, dropped 16.7 percent as physical and ringtone products plunged.

11. The US recorded music market grew by 0.8 percent, according to the estimate.  Europe also gained for the first time in a decade, but the IFPI did not specify by how much.

Written while listening to John de Sohn on Rdio.

19 Responses

  1. TuneHunter

    So, we had 40 billion dollar industry in 1999 ==== today $56 … and now we pleaseeesifiyed whole humanity for just one billion. When we finish this mummification process of the industry iTunes and Amazon MP3 will be gone and we will VEEEEEvOOOO on 10 billion dollar coffin!

    The only salvation of this lost industry is Discovery Moment Monetization.

    Google, you are stupid too, blinded by advertising and squeezing 100 billion dollars of music into 10 billion dollar manure hole!

    Time to abandon middle ages and enter overdue Renaissance or go to Industrial Revolution or INTERNET!

    • FarePlay

      I’m with you TuneHunter. We would have a healthier music industry if streaming services supported paid downloads and played the part of discovery.

      For all those digihadists, you know who you are, you don’t understand the value of physical product in fan building. Simple marketing 101.

  2. Anonymous

    …and here are the REALLY interesting facts from IFPI’s paper:

    1) Piracy blocking works! Bit torrent use went down by 11% in EU countries with blocking, while it increased by 15% in EU countries without blocking.

    2) And now we know where consumers are introduced to piracy: Search engines! That’s where 74% of consumers learned about illegal sites. Google is the worst: No other search engine recommended 100% criminal sites to users who were looking for “Katy Perry” and “mp3”.

    3) We also know how much the Piracy Industry earned from stealing your music and making it available on ad-financed sites in 2013: $227,000,000.

    4) And the funny thing is that the majority of pirates think that companies should stop advertising on piracy sites. They also think that search engines should give priority to licensed digital music services over services from the commercial Pirate Industry.

    5 Meanwhile, Google’s war on music goes on and on: By January 2014, rightholders had asked Google to stop advertising for criminals sites one hundred million times. This makes Google the portal to organized crime today.

    • FarePlay

      Google has no interest in stopping online piracy, unless it can benefit them financially. Plus they own the elephant in the room.

  3. RIAA 2013 Report

    Streaming Revenue 2012: $1,032.8 million USD (up 59%)
    Singles Download Revenue 2012: $1,623.6 million USD (up 6.7%)
    Album Download Revenue in 2013: $1,205 million USD

    Streaming Revenue 2013: $1.439 billion USD (up 39.3%)
    Singles Download Revenue 2013: $1.569 billion USD (down 3.4%)
    Album Download Revenue in 2013 is $1.234 billion USD (up 2.4%)


        • GGG

          Sit back and think for a second. We have growing cloud storage for personal use. We have growing cloud storage of professional use. We have Netflix and Hulu, et al. Do you REALLY not see music moving to streaming?

          And I’m not talking about how bad the payouts are, I’m not talking about anything we argue about on here every day, be in theoretical or what. I’m purely asking if you legitimately see music as pretty much the only thing that doesn’t move into the world of cloud/streaming?

          • TuneHunter

            Streaming is THE ONLY WAY TO GO, I totally agree with you and Daniel Ek.
            The problem is discovery.
            Let them please you to death – multiple orgasms from Echo Nest generated tune is brilliant!

            The problem we have we run naked and give them all we got without being ask for it.
            We must limit displays to lock music in virtual walls and hire Shazams as a cash registers – you want another orgasm from same tune? fine, we need your 39 cents.
            At that point it will become part of your playlist – forever yours!

          • GGG

            Serious question: Are you pitching this idea to anyone? Whether I agree with it or not, think it will work or not, telling us this idea every day doesn’t help anyone. Who am I to make that work? Nobody. You have you contact the majors and/or indies to start getting traction. Not just some assholes on a music blog.

          • TuneHunter

            I am hoping that some human at Google, Amazon or Apple will notice me and we can start recovery.
            I have lost hope in labels or RIAA. For me it is one hour a day, every other day observation.
            Honestly, I am contemplating to disengage and finish my 15 year observation of music industry.
            It starts to look hopeless and irreversible!

          • TuneHunter

            …and Paul’s DMN, you call it blog, is by far the best platform to observe the problems and communicate proposals helping to save almost dead business.
            I have Premium LinkedIn with direct email access to all big shuts of the industry – not a single response!

            They are busy streaming the business away!

          • FarePlay

            Why you can’t compare movie streaming to music streaming. Movie streaming is mainly a one time event, music is not. The numbers don’t work for the music streaming services or the artist.

          • GGG

            It doesn’t matter. The world is moving to streaming/cloud storage. Listen to your vinyl all you want, nobody will stop you. But music isn’t going to magically be the only aspect of life that reverts to physical product just because you have a fetish for it. And having said that, I bet vinyl grows for a while longer. But I also guarantee you that all these people who buy vinyl also listen to a ton of digital music.

  4. Anon

    Streaming Revenue 2012 (USA): $1.032 billion USD (up 59%)
    Streaming Revenue 2013 (USA): $1.439 billion USD (up 39.3%)

    Look like streaming growth is slowing down. At least in the USA.

  5. Dr.

    I’m surprised that DMN hasn’t report the 2013 RIAA numbers yet.

    It been out for a day now.

  6. Radio DJ/Programmer

    There will always be those who push back against technological advancements. Technology has always won out. j/s