Music Streaming Revenue The Bright Spot In 2013 Music Sales
January 9, 2014 at 3:45 PM (PT)
When NIELSEN released its year-end sales data earlier this week that showed overall music sales down 6.3% and more distressingly, digital download sales down 6%, the lone silver lining for optimism about the future of the music business came in music streaming sales, which rose 32%.
FORBES reports that despite dissatisfaction with compensation from artists music streaming from the likes of PANDORA, SPOTIDY, iHEARTRADIO and now iTUNES RADIO, among others, streaming is being adopted by a growing number of people -- and that it reflects the consumers's continued interest in music.
“Despite shifts in how music is consumed, we see continued growth in overall music consumption,” says NIELSEN SVP/Industry Insights DAVID BAKULA wrote in a statement. “With more than 118 billion streams in 2013 reported by our data providers, which is the approximate revenue equivalent of 59 million albums purchased, the industry remains vibrant as consumption continues to change and expand.”
In other categories, album sales dropped 8% and CD sales fell 14%. While vinyl sales rose 33%, most believe it's not expected to achieve the volume of sales and revenue to make it relevant on a critical-mass scale again.