Although sales of music CDs have recently dropped, labels need not worry about declining profits. They earn more and more money to stream music through the internet. Only in the first half of the year, the music industry’s revenues were more than $ 1 billion.
Trends in music distribution in recent years have changed several times. First, we all bought albums on physical media. Then, mainly because of Apple and the iTunes store, digital distribution has gained popularity. Thanks to this the customer did not have to buy the whole album for one interesting song because he could only buy one song.
Recently, however, music fans have been buying albums less and less, as they have switched to streaming music from their favorite artists. From their point of view, this is a much better solution, because at the price of a single subscription, they have access to several dozen million songs of different musical genres.
It would seem that the labels are not happy with the music, especially with the decline of album sales. However, it turns out that they have no reason to complain at all. The latest report from the Recording Industry Association of America (RIAA) shows that they are earning on streaming music, or more strictly speaking, on licenses.
Only in the first half of the year, the plants recorded the highest revenue growth since 1990, up from 8.1% in the previous year. This gave the recorders as much as $ 3.4 billion. Revenue from music services alone grew 57 percent, and they accounted for as much as 47 percent of all music industry revenue.
Streaming the most money it brings in the United States. In the first half of this year, revenue for the first time exceeded $ 1 billion, an increase of 112 percent. Meanwhile, both music and digital albums are getting worse. In the same period, their sales decreased by 17% and 14%, respectively.
Streaming has so crucial to the music industry, allowing it to compensate for losses incurred on other fields of activity.
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