Showing posts with label streaming. Show all posts
Showing posts with label streaming. Show all posts

Sunday, July 12, 2015

Streaming is to the Decline in Album Sales as…

Digital streaming has been on the rise in recent years and in 2015 the popularity of streaming has doubled in popularity. According to Nielsen Music, nearly 135.2 billion streams have been generated this year against the 70.3 billion that were measured at this time last year.
Various types of streaming were measured, audio and video. Audio-only listening saw an increase of 74.2 percent due to ease of access to streaming services such as Spotify, Apple Music and Tidal. Video streaming also saw a significant increase, topping that of audio only, of 109.2 percent in a year.
This year’s top selling albums included Taylor Swift’s 1989 and Drake’s If You’re Reading This… with over 2 million units being moved including albums and album equivalent units. Swift’s 1989 was also the top selling album of 2014 while Drake’s album has taken the lead on digital album sales with over 850,000 units. Album equivalent units are classified as TEA or SEA. TEA is track equivalent albums where 10 track downloads equal one album and SEA , streaming equivalent albums, is where 1,5000 streams equal an album. TEA and SEA album equivalents saw an increase of 14.2 percent totaling in nearly 76 percent of album consumptions. Among the two classifications of album equivalents, SEA is the most popular consisting of 90.1 million units in this year.
While digital consumption of albums has seen a significant rise, physical album sales are on the steady decline. CD sales were on the decline by 10 percent while vinyl sales saw upward growth of 38.4 percent. While the increase in vinyl sales would be hopeful, vinyl sales only accounted for 5.6 million units within the year.

After improved technology, allowing Nielsen Music, to better track digital consumption it is clear that streaming is on the rise and album sales will continue to decline. This will cause the industry’s approach to intellectual property with digital tracks to be revisited.

Sunday, August 10, 2014

Digital Girl in a Digital World


The days of music being available exclusively though a physical record are long gone.  Fans no longer race to record stores for new releases, instead music is instantly available either through downloads or streaming services. Listeners are able to access these online services from virtually anywhere with an Internet connection through mobile applications and web browsers.

Digital music sales have recently been embraced industry-wide following the decline in physical album sales and piracy. Industry leaders had been discovering new ways to engage fans and encourage downloads such as iTunes Store exclusives, where content is unavailable in any other medium or platform.  Artists like BeyoncĂ© have recently released content via iTunes digital download before making the content available across other mediums. 


The popularity of streaming services are causing further change in the industry for artists, publishers and labels. According the Neilsan SoundScan, in 2013, digital track sales decreased from 1.34 billion to 1.26 billion in the U.S. for the first time.  The same year over 118.1 billion songs were streamed through services like YouTube, Pandora, Rhapsody and Spotify. Online streaming services range from internet radio such as Pandora to on-demand services such as Spotify and Rhapsody. As the market share for digital music consumption is growing, it is predicted that personal radio will always be leader due to its ease in listening.

McAlevey, T.. (2014, Aug. 7). Guest Post: Forget the Rhetoric, Streaming Music Is Already Profitable. BillboardBiz Retrieved Aug. 8, 2014, from http://www.billboard.com/biz/articles/news/digital-and-mobile/6214054/guest-post-forget-the-rhetoric-streaming-music-is.

Luckerson, V. (2014). Spotify and YouTube Are Just Killing Digital Music Sales. Time.Com, 1.

Sunday, July 20, 2014

YouTube to Become Subscription Service

Video streaming giant, YouTube (YT), recently announced their plan to launch a music subscription service similar to Spotify and Rhapsody only with music videos. The recent decline in music downloads has led to an explosion in the music streaming market. While many currently use YouTube as an on demand video service, the new offerings will introduce new revenue streams for YT and its music partners. The new service is likely feature entire albums as opposed to videos for album singles only.

The biggest difference between the free on demand service and the premium service will be the placement and use of advertisements. Paid users will forgo the advertisements, which play before the start of videos. [Read more here.]

In order for YT to start a premium streaming service, Google (YT’s parent company) had to acquire the proper licenses from publishing companies and music labels.  Once the service is launched, subscription fees will help to support continued licenses and royalty fees. Among the first licenses acquired were those from Warner Music Group and Sony Music Entertainment.

While YouTube’s plans for becoming subscription based are welcomed in the industry, the partnership that has been dictated for independent labels and partners is not. Unlike Spotify, Rdio and Rhapsody that treat and pay independent labels in an equal manner to major labels, YT has proposed a lesser pay rate for licenses from independent partners.

The proposed difference in pay has angered many independent labels and publishers as well as raised questions regarding Google’s (YouTube’s parent company) treatment of content owners’ rights. In response to those concerns, Google claims to have paid more than $1 billion dollars in royalties to content owners in the last few years.


In the event that independent labels and YouTube are unable to find applicable terms of use for independent licenses, many independent labels may opt out of the newest streaming service. Opting out of the service will remove content from not only the premium tier of YT but also the free service. This could mean many popular artists such as Adele, Taylor Swift, Arctic Monkeys and Vampire Weekend will no longer have content featured on YouTube. [Read more here and here.]