Streaming services like Apple Music dominate music industry revenue

Apple's music and other paid subscriptions are the largest source of revenue in the growing music industry, covering 75% of revenue far beyond other donors.

by Report on music income during 2018The music industry announced by the American Recording Industry Association (RIAA) this week shows an overall increase in revenue. These revenues amounted to $ 4.6 billion in the first half, compared to $ 4.2 billion in 2017.

Three-quarters of industry sales in the first half of 2018 were derived from streaming, 12% for digital downloads and 10% for physical sales. In addition, streaming revenue reached $ 3.4 billion in the first half, up 28% from 2017.

According to the RIAA, this revenue of $ 2.55 billion comes from paid subscriptions such as Apple Music, Spotify, Tidal, but this association did not distinguish between the various services. It increased from $ 1.9 billion in the first half of 2017 to $ 1.1 billion in the first half of 2016.

In the United States, Apple Music would have surpassed Spotify last July.

According to the RIAA in the US, there are currently 46.4 million paid music subscriptions, from 31.5 million in the previous year to 20.3 million cases two years ago. At the same time, as the business model evolved, digital download revenues in the United States declined to $ 562 million in the same period last year. That exceeded $ 1 billion two years ago.

RIAA said in early this year that streaming accounted for 65% of the sector's earnings in 2017.

In the new report, RIAA acknowledged that the industry faces challenges despite the success of streaming.

Mitch Glazier says: "We competed to attract the user's attention to other entertainment options on the ubiquitous smartphone and asked the RIAA president about the results by playing an important role in many different digital platforms.

© Appleinsider

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