Streaming to dominate future music consumption, says report
Original article from: http://www.m-magazine.co.uk/news/streaming-dominate-future-music-consumption-says-report/
Music streaming is to become the ‘preferred user experience’ over physical formats and downloads in the future, a new report has revealed.
A new forecast from services firm PwC predicts digital music growth is being driven by an uptake of streaming services.
According to PwC, music streaming was worth $509m (£393m) in 2016 and is forecast to rise $1.4bn by 2021. It will then account for 93.1 percent of all digital recorded music revenues.
Total digital recorded music revenue was $838mn in 2016, up from $741mn in the previous year.
Global digital revenues were up by $1.8bn year-on-year while the physical segment declined by 9.6 percent.
Christopher Vollmer, who leads PwC’s global entertainment and media advisory business, told the FT: ‘The growth of streaming reflects how it’s become a preferred business model and user experience for most consumers.
‘They like the combination of on-demand access to content [and] they like the convenience of having the jukebox in the sky that has been realised because of widespread broadband availability.’
Further findings revealed that total live music revenue was US$2.1bn in 2016, and is forecast to continue to remain flat through 2021.
The BPI reported that 45bn audio streams were served through digital music services last year, a 68 percent increase on 2015 and a spike of 500 percent from 2013.
Read our recent feature on exploring how streaming services can boost your music career.
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