After Recorded Music New Zealand's release of the 2016 music revenue figures, the industry can rejoice in the rising success of on-demand streaming. More people are consuming more music, more regularly. This is in-tune with RIAA’s recent release of the US recorded music revenue numbers for 2016. Although current revenues sit only at about half of that in 1999, there is now optimism after a period of uncertainty.
On-demand streaming has taken over the industry. In NZ streaming makes up 50% of music revenue, and similarly around 51% in the US, and this figure is just going to keep growing.
In 2016 music streaming in NZ totaled $43.3 million in revenue, up from $25.7 million in 2015. This is a massive jump, indicative of the new wave of music consumption. Similarly in the US, advertisement-funded streaming platforms such as YouTube, Vevo and Spotify’s free tier, together with music subscription services made US $2.95 billion for 2016, almost doubling the 2015 figures.
To put this in perspective, purchasing and downloading an album from the likes of iTunes was the go-to avenue for music consumption only a few years ago. At its height in 2013, music downloads brought in $23 million, making up 34% of the total industry revenue in NZ, however now its only making up 13%.
The good news for the industry is that on-demand streaming services are pushing a rise in music consumption. Yes, we still have a long way to go until we can match the hype of the 90s, but we are getting there – so keep on listening!
For years, music fans have lamented how the internet is killing the music industry, but new statistics have completely changed the conversation.