A Look At The Streaming Revenue Pie

Here's an interesting infographic from Statista that shows exactly what the online digital revenue pie looks like as compared to 2008.

At the end of 2014 there was about 28 million paid streaming music subscribers, which has now topped 41 million so the numbers are quite a bit larger in 2015.

As you can see, downloads still owns 52% of the market, and while that will undoubtedly decrease in 2015, it will still remain a substantial piece of the puzzle for at least a few more years.

What is growing is the number of people that are adopting streaming, either via the free tier or paid subscription, and this looks to really take off now that Apple Music has launched.

What's interesting is that 15% of the market is still made up of ring tones, ring backs and various other technologies that we don't even consider these days, but are still generating significant income.


You will find more statistics at Statista

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Spotify Royalties Overtake iTunes In Europe

Many high profile artists are railing against the royalty payments provided by Spotify, but it's paying out more and more money every day. In fact, the streaming service has now overtaken iTunes as far as royalty revenue in Europe, according to Kobalt, a company that helps collect music royalties on behalf of artists.

Kobalt has a number of big artists in its stable, including Maroon 5, Lenny Kravit, Dave Grohl, Max Martin, Bob Dylan and many more. The company reports that revenue from Spotify streams were 13% higher than from iTunes last quarter, but it only collects for its artist in Europe.

What's interesting is how fast this has flipped. It was only a year ago that Kobalt found iTunes earnings were 32% higher than Spotify.

People can deny that streaming isn't gaining traction or isn't paying, but the facts say that's definitely not true.

The problem is that many artists aren't seeing these new revenues mostly because of the deals they've struck with their record labels. Labels have always been good at siphoning off money from artist royalties, and even though we're now in the digital age, it seems just as difficult as ever to track.

That said, streaming is coming on strong, and soon it will mean more money for all involved. How much more remains to be seen.

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