Of Every Dollar Spent on Music, Just 3% Goes to Streaming…

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Presented recently by Nielsen at EDMbiz Conference & Expo in Las Vegas.  

16 Responses

  1. Anonymous

    Pandora One has very high churn. But that was to be expected when they raised the price of Pandora One from the annual price of $36 per year to $48 for legacy customers and $60 for new subscribers.

    I can be counted as a former Rhapsody and Slacker subscriber. Currently using Pandora One and Spotify free until I migrate to Google Play later this year. Pandora One and Google Play should make the best combination for me.

  2. Anonymous

    Hm, guess streaming wasn’t the future after all.

  3. kevin

    this can’t possibly be suprising to anyone, can it?

  4. Roger Bixley

    What this chart is really saying is concert ticket prices are astronomical.

  5. Anon

    And CD sales are still 4x Streaming.

    Streaming is never going to make any money for living artists- maybe for labels that hold huge back catalogs.

  6. Paul

    Hi Roger, you are right. I went to see Katy Perry and Taylor Swift and paid those high ticket prices. I had reasons to go, and experienced great shows in their own right. The CD Albums were great, too. However the concert ticket fees were much higher than their CD Album Prices. For the Price of two concert tickets I could have bought 25 CD abums of 25 different artists. I let others figure out why things are the way they are, but it’s crazy. These concerts are musicals, arena shows, almost Broadway type productions. Sound and light were a treat of senses. They have evolved into a new thing, far away from Woodstock-type concerts – whereas albums are still ‘just’ albums. Food for thought.

  7. KS2 Problema

    Let’s say there are about 100 million people streaming. There are 7 billion people in the world. That 100M would be a little under 1.5% of the world’s population. But according to these figures, streaming accounts for about 3% of the money spent on music.

    This is in rough congruence with the observation that paid stream subscriptions amount to about double what most people spend on music in a given period.

  8. Duke

    The Reality is live music never used to have anything to do with recorded music. We had record stores to go to. The reason why ticket prices are so high is there is no stream coming from recorded music so this is where the acts make their money and they are setting market price high for the superstar acts. I would never pay $250 a ticket to see anybody. The fees are also where the promoter rapes and pillages you. The vibe is they are doing nothing to protect the future of recorded music. The quality will go down along with shittier songs and less real music. James Taylor just gave us glimpse of what it’s like to have a well produced and recorded album in the market place. something that is becoming more rare everyday

  9. KS2 Problema

    With regard to the high cost of big shows — I think the comment likening them to the sort of musical shows and entertainment extravaganzas that used to be the province of Broadway was spot on.

    When I went to see top rock acts for $3.50 at the start of the 1970s (around $23 in today’s money), the shows were just a band and a PA and hopefully the PA was loud enough to reach the back rows. There were no mega-video displays (maybe a wee light show with a few slide or movie projectors); there weren’t armies of back up musicians, ghost singers, dancers; there weren’t banks of computer playback for those all-important light-show and music synchronizations.

    People went to see music, not an extravaganza. But the culture changes, with the rubes following the biggest noises and brightest lights.

  10. Rickshaw

    This would really mean something if 4% went to something like cassette sales.

  11. icichacal

    Fetty Wap and Underground Therapy – is this really what passes for music these days? Didn’t this stuff used to be called disco or even elevator music? Muzak to my ears.