Music Streaming And The (Possible) Death Of iTunes

Music Streaming And The (Possible) Death Of iTunes
SHARE
THIS



In this guest post, esteemed Aussie scribe John Birmingham casts a keen eye over music streaming services and suggests, for many, the future looks bleak…

Subscription services have replaced downloads in the US as the largest revenue source for the music industry. Apple Music hasn’t quite cannibalised iTunes yet, but the trend line is indisputable. The Recording Industry Association of America has just dropped figures for 2015, and the biggest profit centres for music companies were paid streaming services or ad-supported platforms such as YouTube or Spotify’s free tier.

Unknown

Fortune reports that streaming delivered 34.3 per cent of US music industry revenue, at $US2.4 billion. Digital downloads — which mostly means iTunes — dropped from utter dominance to squeak into second place at 34 per cent of sales. Physical formats made up the rest of the pie.

Digging in deep, however, throws up some curious finds. Not all streaming services are created equal. YouTube is far and away the most popular delivery channel for streamed music, especially among the younger demographics. But the ’Tube is ad-supported. A recent foray into a paid subscription service has not delivered many paying punters.

The paltry returns from the ad-based channel can be seen in the greater sum earned by sales of vinyl. Old school platters have enjoyed something of a hipster-led revival, paying out $US416 million in the last year — appreciably more than Spotify or YouTube ads, which coughed up less than $US400 million for the whole sector.

As the money moves to subscriptions, the industry faces another shakeout. Indeed, shakeout seems to be the default condition for the music biz. The much-admired, technically elegant Rdio shut up shop at the start of the year, following Sony’s paid streaming service into oblivion. Apple bought Beats Music (and headphone business) to provide the core of its subscription service. Industry veterans like Pandora and Deezer are casting about for capital, partners or simple lifelines to stay afloat.

The most likely future for streaming music is as a perk — a low cost offering, possibly subsidised, by the tech giants as an enticement into their wider ecologies. Apple, Google and Amazon all have bets on in this race.

The most likely future for artists is playing live gigs for beer money.

This article originally appeared on B&T’s sister business site www.which-50.com

Please login with linkedin to comment

ADMA Creative School Animation CC's Designworks Hat Tip Le Figaro The Conversation

Latest News

Four Barriers To Overcome For Disruptive Innovation
  • Opinion

Four Barriers To Overcome For Disruptive Innovation

Zoe Aitken (main photo) is the head of consulting at behavioural science and innovation consultancy Inventium and has over 20 years’ experience helping organisations develop customer-centric growth strategies and innovation. In this guest post, Aitken says some of the best ideas come in dark times and, suggests, COVID maybe the excuse you need to instigate […]

Opinion

by B&T Magazine

B&T Magazine
Repco Unveils “Bringin’ The Bathurst” Campaign Via Thinkerbell
  • Campaigns

Repco Unveils “Bringin’ The Bathurst” Campaign Via Thinkerbell

With its rich heritage in motor racing, The Bathurst 1000 is finally in the hands of a brand that lives and breathes the sport. To celebrate, Repco is Bringin’ the Bathurst to absolutely everything they do. The Bathurst 1000 has always been more than a race. The iconic event at Mount Panorama is a symbol […]

The Zoo Republic &  Sanitarium Change The Game With Their Latest Weet-Bix Prize-Bowl AR Promotion
  • Advertising
  • Marketing

The Zoo Republic & Sanitarium Change The Game With Their Latest Weet-Bix Prize-Bowl AR Promotion

Sanitarium Australia and The Zoo Republic have teamed up to develop and launch a new and exciting cricket promotion, to be found on Weet-Bix packs across the nation. Building on Weet-Bix’s affiliation with cricket superstars Ellyse Perry and Marnus Labuschagne, the promotion features AR technology to bring the cricket pitch to the breakfast table.

Independent Agency Indago Digital Adds Four New Clients
  • Marketing
  • Technology

Independent Agency Indago Digital Adds Four New Clients

Indago Digital has announced four new client wins, as the independent agency continues its growth trajectory. Indago’s new clients are P&N Bank, Oneflare, salary packaging company Smartgroup, and charity Kids Giving Back. The agency will handle a combination of SEO and paid search for each client. Indago’s digital managing director, Gary Nissim (pictured above), said: “The […]

DDB Honours Legacy Of First Copy Chief Phyllis Robinson On Her 100th Birthday
  • Marketing

DDB Honours Legacy Of First Copy Chief Phyllis Robinson On Her 100th Birthday

Phyllis Robinson was one of the founding employees of Doyle Dane Bernbach back in 1949, the agency’s first copy chief and the first female copy chief in the United States. Robinson was a pioneer, not just for women but for the creative advertising revolution that she helped ignite, changing the face of the industry forever. […]

Make A Wish Foundation Names Mindshare New Zealand As Media Partner
  • Media

Make A Wish Foundation Names Mindshare New Zealand As Media Partner

Mindshare New Zealand has announced its new partnership with Make-A-Wish Foundation, a purpose-driven charity with a mission to create life-changing wishes for children with critical illnesses. The partnership, which is effective immediately, will elevate Make-A-Wish Foundation’s digital marketing strategy in New Zealand. It will aim to increase and nurture donors, drive brand awareness and ultimately […]

The Australian Marks 10 Years Digital Subscription Milestone
  • Media

The Australian Marks 10 Years Digital Subscription Milestone

The Australian is celebrating a decade since it became the first general newspaper in Australia to launch its digital subscription model, marking the beginning of a new economic model for Australian newspapers. Since launching, digital subscriptions have grown to represent a majority of The Australian’s total reach, paid audience and consumer revenue. In 10 years […]

PodSpot Studios Expand To Sydney & Gold Coast
  • Media

PodSpot Studios Expand To Sydney & Gold Coast

PodSpot Studios, the first network of purpose-built studios founded by content creator and former breakfast radio host Dave Matthews, has launched in two new locations as it gears up for further national expansion amid Australia’s podcasting boom. PodSpot Studios is a collaboration between Matthews’ podcast production company PodSpot and the ASX-listed WOTSO Property, which owns and […]