American music streaming service revenues increased by 29% last year to reach $1.87 billion, accounting for more than one-quarter of total industry revenues. Growth was at the expense of both digital downloads and physical media revenues.
Digital audio consumption is moving to mobile. American smartphone listeners will grow nearly 15% to just under 100 million people — that’s 52.3% of smartphone users. Moreover, 77.3 million people will listen via tablets — that’s 45.5% of digital music listeners and 48.7% of tablet users.
The consumption of music on mobile devices is the key trend to watch. It’s a huge market. Strategy Analytics says that the total global mobile music market value will grow from $12.8 billion in 2014 to reach $21.3 billion by 2021. However, there’s been a decline in pay-per-download sales.
The popularity of music streaming services in the UK continues unabated. The British Recorded Music Industry says music listeners in the UK streamed 14.8 billion tracks in 2014 — that’s up by 97.3% on the 7.5 billion streamed in 2013.
The competition for market share in the mobile cloud arena will escalate during 2015. The cloud content and services markets — enabled by the ubiquity of smartphones and media tablets — are now the battleground between major content providers, device manufacturers and internet service providers.
There’s no denying it – music has gone digital in Denmark. According to recent market data, digital accounted for 82% of total music revenues in the country during the first half of 2014. The key driver of this huge share is streaming services. The format accounted for 63% of music company revenues from recorded music in Denmark.
The music industry continues to be plagued with difficulties, particularly as far as recorded music is concerned. Juniper Research found that the digital music industry will experience slow growth in revenue over the next 5 years, growing from $12.3 billion this year to $13.9 billion in 2019.