One thing about the music industry is that it likes to be comfortable. Life was so easy for about 50 years as the way business was conducted hardly ever changed. The label found an act, made a record, sold it to retail and promoted it through radio. Publishers and songwriters went to the mailbox and collected their checks. Boy, are those days over.
Just about the time the industry was getting used to digital downloads as the center of its financial universe, the business model is changing once again as streaming becomes the consumption method of choice for music lovers everywhere. The genie’s out of the bottle, the cows are out the barn, and the music files are off the hard drive.
Nielsen SoundScan’s numbers for 2013 now show that streaming was up 32 percent, while digital download sales were down about 6 percent. Folks, from this point on this disparity will continue to grow, and by leaps and bounds I might add, and you can take that to the bank.
Once again, let’s state the obvious - people prefer convenience when it comes to technology, and streaming is so much more convenient than any other type of music consumption method that there’s no contest. You’re going to see streaming explode for real in 2014, and those SoundScan numbers are going to look tiny when we look back this time next year. Read more on Forbes.
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