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The global music industry is set to see revenue rise this year for the first time since 1998, driven by paid streaming music services like Spotify and Apple ( AAPL ) Music, Credit Suisse said Monday. Credit Suisse expects growth in the music industry will accelerate over the next three years. In recent years, the music industry has been hurt by declining physical album sales and slowing digital downloads. The bank’s analysts see revenue from paid streaming music services reaching $12.7 billion by 2020, compared with $2.2 billion in 2015. Adoption of paid streaming music services is under 5% among adults in major music markets today, but it could reach about 25% by 2020, Credit Suisse said. The major record labels and Apple are seen as the key beneficiaries, it said. There are two types of streaming music services. The first type involve subscription-based, on-demand services that let users choose each music track to be played. These services include Apple Music, Spotify, Deezer and Tidal. The other type of streaming music are personalized radio services funded by advertising, such as Pandora Media ( P ) and iHeartRadio. With Internet radio services, users can choose music genres but not specific tracks. Among on-demand streaming music services, Spotify leads with 30 million subscribers, followed by Apple Music with 11 million. Vying for third place are Deezer (3.8 million), Rhapsody (3.5 million) and Tidal (3 million). Scalper1 News
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