Artists make their money from live concerts. But streaming makes more overall.
PricewaterhouseCoopers (PwC) have released their annual Entertainment and Media Outlook report, which highlights some interesting projections. DMN takes a closer look at the forecasted figures.
Streaming is the main driver for US music revenue.
The report shows that the total music revenue in the US is predicted to hit $18.04 billion by 2020, which is stimulated by the growth in the music streaming market. With digital downloads predicted to decrease at a (compound annual) rate of 14%, Physical declining 12% and Mobile Music falling 23% the only other factors driving the US music industry is Live Music and Streaming.
Total Live Music revenue in the US is predicted to grow 4.7 percent at a (compound annual) rate through 2020, fuelled mainly by live music ticket sales. This is steady, healthy growth, but it is Streaming that is the clear leader here, with predicted growth reaching a massive 21.7 percent through 2020 at a (compound annual) rate, hitting $4.2 billion in that year.
Though, there have been many debates regarding whether the streaming music business model is good for the music industry or whether it is in fact harmful. On one side there is the argument that it is disrupting traditional music sales, and then there are reports and statistics that suggest that it simply displaces what is lost in physical and digital downloads.
But, what’s clear is that regardless of the effect on the other methods of music consumption, Streaming revenue is increasing year-on-year at an unprecedented rate. The music business is moving away from traditional methods of consuming music and geared towards paid subscriptions, and this is evident in the PwC figures.
The post Streaming Is Growing Faster Than Concert Revenues in 2016 appeared first on Digital Music News.