Consultant ensures that streaming music will grow 40% this year
According to independent consultancy Strategy Analytics , global gains of streaming music services like Spotify, Pandora or Rdio will grow almost five times faster than earnings by downloads this year.
The firm predicts that the streaming will generate U.S. $1,100 million in benefits by 2012, increase of 40% compared to U.S. $3,900 million generated discharges, a higher figure but a growth of only 8.5% .
The Director of Strategy Analytics Digital Media, Ed Barton says, “while the downloads are still about 80% of the profits of the online music industry, this market is maturing and its sales are reaching a ceiling in all relevant places. Streaming services like Spotify and Pandora will be the key for the next five years in terms of its use and growth”.
As shown in the chart, sales of digital music in general, online and mobile, will increase by 17.8% million during 2012, while the physical format sales will fall by 12.1%.
This means, according to the consultant that while the 2012 digital music accounts for 39% total sales, compared to 61% of the physical format (which includes Online Sales of CDs and vinyl), the digital market music will overtake physical market by 2015.CD, Internet sales, Music Industry, Online Sales, sales, Vinyl