Sales of vinyl surpass ad-supported streaming music services
Vinyl’s comeback continues to break records.
Vinyl music sales have increased by 52 percent year-over-year to $222 million, according to a new midyear report from the Recording Industry Association of America. Vinyl’s continued growth brought in almost $60 million more than ad-supported streaming services during the first half of 2015, according to the report, which underscores the complexity of the state of the music industry.
Ad-supported streaming — which includes services like YouTube, Vevo, and Spotify’s free version — did grow, just not as quickly: A 27 percent year-over-year increase to $163 million.
Other key takeaways from the report: digital downloads of tracks and albums are declining, but streaming is entirely making up the difference. “It’s a transition of one form of digital to these streaming pieces,” said RIAA data analyst Joshua Friedlander. “Consumers are not buying a specific album, but gaining access to a whole library in one form or another.”
There are a surprising number of bright spots for an industry that is half the size it once was: Streaming music revenues — including paid subscriptions to services like Spotify, ad-supported on-demand services and distributions by the performance rights organization SoundExchange — reached all time highs for the first half of the year, breaking the $1 billion mark.
“Overall, the music industry has become the most-digital in terms of all traditional media outlets — magazines, newspapers — in terms of transition,” said Friedlander. “There is more optimism out there than there was. Two-thirds of the market is still physical [CDs]. It used to be monolithic. Now it’s a mix of things, a revenue diversification that makes a more stable source to grow off of.”
Money spent on paid subscription services grew by 25 percent to $478 million. For the first half of 2014, the average price of a subscription was $97 per year. In the first half of 2015 that average increased to $118 per subscription.
Apple Music, which launched on June 30, was not included in the report, however. And with 11 percent iOs users reporting that they are currently using the service, the RIAA expects paid subscriptions to continue ticking upward in the second half of the year.
“I think it’s going to have a positive impact,” said Friedlander. “These services have mostly grown through word of mouth. There hasn’t been a big Spotify advertising push. When you get a player like Apple involved, that really generates a whole new level of awareness.”
Member ExclusiveMedia Briefing: As supply chain issues threaten stock and shipping disruptions, publishers see opportunity — and more work
In this week's Media Briefing, media reporter Sara Guaglione looks at how companies' supply chain challenges are affecting publishers' commerce businesses heading into the holiday shopping season.
‘We don’t do run-of-site anymore’: How Digital Trends Media Group is using its first-party data
Building audience segments has allowed Digital Trends Media Group to more efficiently target commerce content at its readers.
Why Facebook keeps collecting people’s data and building their profiles even when their accounts are deactivated
Facebook does not make it clear to people or advertisers that, when accounts are deactivated, its vampiric data connections continue to suck in new information.
SponsoredHow cloud technologies are helping media companies unlock the value of data collaboration
Bill Stratton, global head of media, entertainment and advertising vertical, Snowflake Many of today’s media businesses and advertisers are redefining their business models in response to shifts in consumer behavior and the availability of new technologies. For instance, over the past few years, content creators such as Disney, NBCUniversal and HBO have begun selling their […]
Kill Your Algorithm: Listen to episode two of the podcast featuring tales from a more fearsome FTC
As the FTC makes moves to get tougher on big data-gobbling tech, partisanship, politics -- and the agency's past -- could get in the way.
HBO Max, Degree and Verizon are among the 2021 Digiday Awards finalists
New audiences, inclusivity and reemergence from quarantine became the backbeat of this year’s Digiday Awards shortlist. Take a look at the finalists.