After almost two decades of disruption, the music industry is recovering dramatically.
Artists, labels and publishers are aware of the growing popularity of streaming platforms such as Spotify and Apple Music – and consumers are exploiting subscriptions as never before.
Then and with the backdrop mentioned, we bring you the results of the projections made by the prestigious firm Goldman Sachs on the turnover of the music industry in 2030.
Increase in Spotify and Apple Subscribers
- 3 million in 2011.
- 5 million in 2012.
- 7 million in 2013.
- 15 million in 2014.
- 28 million in 2015.
- 43 million in 2016.
- 71 million in 2017.
- 87 million for September 2018.
- 10 million in 2015.
- 20.5 million in 2016.
- 36 million in 2017.
- 56 million for November 2018.
A New Age of Growth
From Goldman Sachs they predict that music profits will grow more than double, reaching 131,000 million dollars by 2030.
Estimate of the Evolution of the Profits of the Music Industry
- Live music had $ 26 billion.
- The recorded music had 30,000 million dollars.
- The publishers had 6,000 million dollars.
- Live music will have reached 38,000 million dollars.
- The recorded music will have reached 80,000 million dollars.
- The publishers * will have reached 12,500 million dollars.
In this area are the profits collected by music publishing companies, which act as agents for composers and writers, collecting and distributing royalties on their behalf.
What's Behind this Growth
- Millennials and the Z generation are investing more money in music than any other group of other ages.
- Those between the ages of 13 and 17 spend $ 80 annually on music.
- Those between the ages of 18 and 34 spend $ 163 annually on music.
- Those over the age of 34 spend $ 152 annually on music.
- The proportion of people who play music on their cell phones is growing.
– Estimate in developed markets:
- Streaming platforms will continue to expand their reach as smart phones become more popular.
– Estimation in emerging markets:
- New payment alternatives, business models and intellectual property recognition open the way to growth.
What could go wrong?
- 76% of streaming users believe that "access to millions of songs" is important or very important.
- 35% think it is important.
- 41% think it is very important.
Streaming could lose its appeal and consumers could appeal to piracy if:
If artists and labels press streaming services to limit their free offers or charge more for their Premium subscriptions.
Record labels remove their music from streaming platforms
If the streaming services omit the record companies to make agreements directly with the artists, the record companies could withdraw their catalogs from the services.
What is next
Streaming is ready to boost music gains to a new level.
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