The music industry received some good news recently when Spotify announced that it had surpassed 28 million paid subscribers at the end of 2015. In June it announced that it was up to 20 million, so a jump that steep in only 6 months shows that consumers are indeed onboard with paying to have their music streamed.
Last week Apple also announced that it was up to 11 million paid subscribers, which means that the industry has recently made great strides towards the 100 million goal that so many industry experts perceive as the point where streaming music begins to overtake the erosion of revenue from falling CD and download sales.
One of the reasons that Spotify's numbers have increased may be because of its educational tier, which charges students just $4.95 per month instead of the normal $9.95.
Many in the industry have long thought that $5 was the magic price point for consumers, but the major record labels have been reluctant to allow that during their licensing negotiations.
Regardless of the price, it's good to hear that paid streaming is finally catching on in a big way. This can be nothing but good for artists and songwriters in the long run, even though it might seem that the payouts are low now.
And by the way, streaming has just about totally killed piracy, which again, is a giant plus for the industry.