The global digital music industry reached a whopping $6.7bn in revenues in 2014 itself. The industry revenue is projected to increase from 11.7 billion US dollars in 2015 to 15.7 billion US dollars in 2020. In the week ending on September 1st 2016, the top track was streamed 42.54 million times on Spotify. These numbers implicate that there is a huge potential in a click or a tap in generating revenue for the digital music industry worldwide. Following apps are creating the moolah for the digital music industry.
It is available for desktop/web as well as mobile app users and allows them to stream single tracks or entire albums with the option to create custom playlists. Spotify allows users to download tracks for offline listening as well. Spotify generated a staggering 2.18 billion in revenue in 2015 with a jaw-dropping 80% rise in income in the year. Spotify’s advertising revenue at 219 million US dollars doubled in 2015. While the overall sales for the music industry declined, the digital industry got a boost from the easily available apps.
The giant e-commerce player couldn’t stay away from the lucrative business of digital music. Although being a late mover Amazon launched one of the best streaming apps which allows users to access entire cloud player library.The digital music revenue which mainly constitutes of downloads and streaming surpassed physical sales of music(CD) in 2014 itself. Amazon plans to capitalize on the digital music market which in anticipated to grow at a fast pace.
Apple’s first streaming service gives you access to any song in the Apple Music library. Apple announced in its 7th Sept 2016 event that Apple Music has already crossed 17 million subscribers mark. Apple has reached this number within a year while Spotify which stands at number 1 spot with 39 million paid subscribers took 8 years to reach this figure. These statistics implicate that there is a large consumer base for digital music industry which is still untapped.
Google Play Music
The android app which allows users to download free music is advertisement free. The app recommends users songs based on their music preference. In the year 2015, the revenue for top 10 music streaming apps increased more than a double which was up by 120 percent from 2014. The significant rise in revenue with Google Play’s share of downloads increasing from 45% in 2014 to 55% in 2015 is a prominent reason the technology giant intends to capture a larger chunk of the digital music market.
The current digital music industry market trends implicate that the sharpest rise in revenues will be attributed to live streaming music. The financial group Credit Suisse has projected a very promising future for recorded music business with a prediction that Universal Music valuation alone will be 10 billion euros. The streaming music will penetrate 20% of the adult population in top 10 music markets. The digital music industry can explore ample amount of revenue generation opportunities through digital music apps and the web.
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