Publications
Partners
Cape Town - Streaming music is set for growth as mid-year sales statistics show that the medium continues to show strong acceleration, at the expense of download sales.
Streaming music sales rocketed up by 42%, according to data released from industry trackers Nielsen SoundScan and Nielsen BDS.
The data showed that streaming passed 70 billion tracks in the first six months of 2014, but digital downloads took a beating.
Digital downloading nosedived by 13% as most sectors of the industry took a hit, but vinyl album sales were up 40% as the format enjoys a fashionable resurgence.
The survey also found that the appetite for digital content was expanding as on-demand audio was up by 50.1% and video by 35.2%.
The results are an indicator that companies which rely on digital downloads may see their business models erode as people migrate to streaming services.
However, streaming provider Spotify is under pressure to increase its revenue despite healthy growth. According to reports, the service has seen its losses rise from $60m to $77m in 2011 to 2012.
Much of that has to do with the royalty payments Spotify has to make to record labels and as it continues to expand, those royalty payments increase.
Apple recently made headlines when it purchased Beats and the move may prove a win for the iPhone maker as it looks to position itself for the streaming demand. The company could potentially leverage its device ecosystem to offer subscribers a multiplatform music streaming experience.
- Follow Duncan on Twitter
Streaming music sales rocketed up by 42%, according to data released from industry trackers Nielsen SoundScan and Nielsen BDS.
The data showed that streaming passed 70 billion tracks in the first six months of 2014, but digital downloads took a beating.
Digital downloading nosedived by 13% as most sectors of the industry took a hit, but vinyl album sales were up 40% as the format enjoys a fashionable resurgence.
The survey also found that the appetite for digital content was expanding as on-demand audio was up by 50.1% and video by 35.2%.
The results are an indicator that companies which rely on digital downloads may see their business models erode as people migrate to streaming services.
However, streaming provider Spotify is under pressure to increase its revenue despite healthy growth. According to reports, the service has seen its losses rise from $60m to $77m in 2011 to 2012.
Much of that has to do with the royalty payments Spotify has to make to record labels and as it continues to expand, those royalty payments increase.
Apple recently made headlines when it purchased Beats and the move may prove a win for the iPhone maker as it looks to position itself for the streaming demand. The company could potentially leverage its device ecosystem to offer subscribers a multiplatform music streaming experience.
- Follow Duncan on Twitter
