Study Finds Downloads And Streaming Fees To Become The Music Industry's Largest Revenue Source This Year
August 16, 2012 at 3:56 AM (PT)
Downloads and streaming music services such as PANDORA and SPOTIFY are set to pass CDs as the music industry's biggest U.S. revenue source, finds a study from STRATEGY ANALYTICS INC. The company posted data on it's website predicting U.S. digital music sales will rise to $3.4 billion this year, moving it ahead of the $3.38 billion in revenue from CDs and vinyl.
By 2015, digital music will surpass physical purchases globally, the company said.
"Streaming music services such as SPOTIFY and PANDORA will be the key growth drivers over the next five years as usage and spending grow rapidly," said STRATEGY ANALYTICS Dir./Digital Media ED BARTON. "The industry will be hoping that digital can rebuild the U.S. music market to something approaching its former stature."
BLOOMBERG notes, "PANDORA, based in OAKLAND, CA, gained 0.1% to $9.30 at the close in NEW YORK yesterday. The stock has declined 7.1% this year. SPOTIFY, the closely held LONDON-based service, began streaming in the U.S. in JULY 2011. U.S. sales of CDs and vinyl will decline 9% in 2012, a slower rate of decline than the rest of the world. Total U.S. recorded music spending this year will rise $134 million, or 2.1%, to about $6.38 billion, according to the researcher."