Music streaming revenue – additional information
The rise of the internet in the past two decades has dramatically changed the music industry on many levels. The popularity of streaming services such as Spotify, Apple Music, Deezer, and Rdio is one of these major changes in the industry. Currently, music streaming services have two main revenue streams: subscriptions and advertising. Since 2010, the music streaming industry has seen a rise in subscriptions revenue, which has become the main revenue stream for this business. In 2010, subscriptions generated about 300 million U.S. dollars in revenues for music streaming services. By 2015, this figure grew to 2.3 billion U.S. dollars. Ad-supported music streaming revenue has also seen a small increase during the same time period, going from 200 million U.S. dollars in 2010 to 600 million U.S. dollars in 2015. Overall, music streaming revenue worldwide showed optimistic figures in the last few years, as the growth rate has varied between 37.5 percent and 56 percent from 2010 to 2015.
In the U.S., the revenue from music streaming services has also grown at a fast pace since 2010, jumping from 500 million U.S. dollars that year to 2.4 billion U.S. dollars in 2015. This growth also had an impact on the music streaming revenue share in the U.S. In 2009, streaming services only accounted for five percent of the total music revenue in the country. This share grew to 34 percent in 2015, the highest figure to date. The coming years are promising for music streaming services in the country. While other sources of digital music such as downloading and mobile music digital are forecast to see a small decline in the next years, music streaming services are projected to increase its revenue in the U.S.