Due to the overnight popularity of online music streaming, the music industry was very much in the dark on how streaming would affect its sales. With traditional music sales having always revolved around the purchase of vinyl records and CDs, no one had an idea what the impact of streaming would be. Luckily, online music streaming seems to be just what the music industry needed!
Thanks to online streaming, the music industry is experiencing its strongest growth since the introduction of CDs in the 90s. In the first half of 2016, record companies experienced an 8.1% increase in profits, when compared to the same time the previous year, reaching $3.4 billion in revenue.
We can attribute this spark in the industry to Spotify’s 40 million paying customers and the revenue Apple Music began collecting six months after it launched in June 2015. Dave Bakula, an analyst at Nielsen Music, even predicts that the interest in music streaming will reignite an interest in non-streaming products, leading to increased sales in vinyl records and boxed sets.
Despite its recent success, the music industry still has concerns. Cary Sherman, chairman and chief executive of the Recording Industry Association of America (RIAA), voiced these concerns by stating, “Despite the massive consumer demand for music, the damning reality remains that music is fundamentally undervalued, with broken outdated laws threatening the entire music community and distorting the marketplace.” As the industry continues to prosper, we hope to see new laws and regulations that account for the value of music, artists, and the industry.
Credit: Cristina Gabrielyan
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