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.

 

 

 

HITS LIST’S TOP GUNS
OF AUGUST
Who's flying high right now? Take a look. (8/5a)
FLYING COACH
The Barnett clan will be on hand when Grandpa Dick Vermeil gets his Hall of Fame jacket. (8/5a)
MO OSTIN: THE 2017 INTERVIEW, PART ONE
Available online for the first time (8/3a)
RENAISSANCE WOMAN: BEYONCÉ
A captivating return (8/2a)
MO OSTIN,
1927-2022
The archetypal label head (8/2a)
RISE OF THE INDIES
How they're reshuffling the biz deck.
THE LATIN-MUSIC MARKETPLACE
Thoughts on a changing landscape.
KETCHUP
It's everywhere.
THE NEXT HUGE CATALOG STORY
Another stunning return.
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)