Quantcast

PREDICTION: STREAMS TO DRIVE BIZ GROWTH FOR A DECADE

The Financial Times has taken a look at the recorded music industry and decided “the Internet may resurrect the business it almost killed.” They base this on streaming services topping 100m paid subscribers worldwide and the U.S. industry looking at two consecutive years of growth for the first time since 1999.

Key to their story is a Goldman Sachs report issued in December that predicts streaming will dwarf sales and licensing income by 2030 when the recorded music business will be valued at just shy of $30b. Fueling that growth will be a rise in streaming revenue to $14.1b. “For the first time, you create a recurring stream of revenue,” says Lisa Yang of Goldman Sachs Research.

The music industry overall—which includes concert revenue and publishing in addition to recorded music—will double in the next 13 years, according to Goldman Sachs’ rosy prognostication: $104b from $54b.

Some of the FT’s observations:

Music groups have leverage over tech companies.

Labels are better positioned than TV studios were when Netflix became a streaming service.

Consolidation among streaming services is inevitable.

Songwriters are the big losers in the streaming world.

Irving Azoff is among the 20 people from the business’ recent golden age who continue to make money from music today.

UMG BROADENS SPOTIFY OFFERINGS
Sir Lucian and Daniel are in harmony. (3/28a)
THE COUNT: COLDPLAY IS HOT, COUNTRY'S COOKIN' IN THE U.K.
The latest tidbits from the bustling live sector (3/28a)
YTD MARKET SHARE
Zeroing in on the elite teams (3/28a)
TRUST IN THE TOP 20
Hip-hop is no longer hibernating. (3/28a)
SONG REVENUE:
A STYLISTIC STEW
MC, divas and singer-songwriters rub elbows. (3/28a)
THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)