RSS feed Get our RSS feed

News by Topic

BizReport : Trends & Ideas archives : August 13, 2015

Revenues generated by ad-based music streaming to exceed $1billion by 2017

Despite the declining number of freemium services, revenue generated through ad-based music streaming is forecast to exceed $1 billion within the next two years, according to new research released by Juniper.

by Helen Leggatt

Juniper's new report, 'Digital Music - Subscriptions, Ad Revenues & Download Services 2015-2020' reveals that revenue generated through ad-based music streaming is set to exceed US$1 billion by 2017, up from US$782 million in this year.

The increase is, says Juniper, due to a shift in consumer behavior from downloading to streaming. According to the Recording Industry Association of America, the download market experienced its first decline in 2013, followed by further decline in 2014 when it fell 11-14% in the first 6 months alone.

By 2018, subscription streaming revenues will have overtaken download revenues.

According to Juniper's report, "The download market has long been at the forefront of the digital transformation; however, following its recent struggle, the market is forecast to continue its global decline with the music industry instead turning to the potential of streaming".

Apple Music, which has already amassed a user-base of around 11 million subscribers, is expected to act as a major catalyst in driving the expansion of subscription-based streaming services, with significant growth expected across all major markets.

Image via Shutterstock

Tags: music industry, streaming music, trends

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.