January 11, 2017
Two new reports last week confirmed what we all suspected – streaming took over the music industry last year as consumers embraced access over ownership.
BuzzAngle Music found that on-demand streams increased more than 82 percent last year over 2015, according to its “2016 U.S. Music Industry Report.” Streams on subscription and ad-supported services reached 250.7 billion in 2016, up from 137.2 billion a year ago, BuzzAngle found.
Nielsen Music found that on-demand streams increased 76 percent last year over 2015, according to its “2016 U.S. Year-End Report.” Its data shows audio streams reached 251.9 billion in 2016, up from 142.8 billion a year ago.
Streaming shows no sign of slowing down, said Jim Lidestri, chief executive officer of Border City Media, which owns and operates BuzzAngle Music.
“In addition to providing the industry with a great business model, streaming services offer music lovers a much wider selection of music at their fingertips. In 2016, there were over 28M unique songs played via a streaming service compared to 7M songs that were purchased. An average day’s audio-streaming volume in 2016 (1.2B) was much larger than the entire year’s volume of song sales (734M). More music is being listened to by more people than ever before,” he wrote in the report.
Fueled by streaming, music consumption increased 4.9 percent last year, according to BuzzAngle. Nielsen found that music consumption increased 3 percent from 2015 to 2016.
“Music consumption is at an all-time high,” said Erin Crawford, senior vice president of entertainment and general manager of music at Nielsen Music.
BuzzAngle and Nielsen each found that while streaming surged, other formats took a hit in 2016. Both researchers said song downloads and CD sales declined in 2016. They also agreed that the sale of vinyl increased in 2016. Vinyl LP sales increased for the 11th consecutive year in 2016 to 13 million units, according to Nielsen.
Neither report accounts for non-subscription streaming, but with revenue from streaming likely to increase for all music services in the digital ecosystem, registering with SoundExchange is more important than ever.
We’ve paid more than $4.5 billion in royalties to date. But you must register with us in order to receive royalties. You can do that here. You can also become a member – registration is different than membership. Membership is free and allows us to collect international royalties on your behalf and get those royalties to you.
Do you want to learn more about digital royalties? Check here.
Haven’t registered? Please check out our Registration and Membership page here.
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