Global music revenue fell to $22.5 billion in 2014, down by 1.3% from $22.8 billion one year earlier, according to Strategy Analytics.
This decline is the result of the growing popularity of streaming music services like Spotify and Pandora. These services, which are monetized through low-cost monthly subscriptions and advertising, yield significantly less revenue than packaged music sales or digital downloads.
- Packaged music, such as CDs and vinyl records, accounted for a slight majority of global music revenue during the year, but continued to decline from a 55% share in 2013 and a 61% share in 2012.
- Streaming music, including subscription and ad-supported services, accounted for nearly one-half of digital music revenue. The segment’s total revenue grew by 14% year-over-year (YoY) during 2014.
- Downloads fell to a share of just over one-half during the year, due to a big decline in song and album downloads. In the US, song downloads fell by 12%, and digital album downloads declined by 9% during the year, according to Nielsen.
(Source: Business Intelligence)