| 25 Jul 2024
Consistent rise and strong growth in streaming services highlight first half of music industry

MUMBAI: The first half of 2015’s revenue, announced by the Recording Industry Association of America (RIAA), demonstrates a continued healthy diversification of overall revenues, with physical products, digital downloads and streaming, each contributing between 24 and 40 per cent to overall revenues.

The overall wholesale value increased by 0.8 per cent in the first half as compared to the same duration of the previous year, amounting to $2.3 billion. The impressive growth overshadowed losses occurred in the overall retail value, falling by 0.5 per cent to $3.2 billion.

Music streaming services, however, contributed the most to the overall financial growth for the first half, surpassing $1 billion for the first time. The category, which includes subscription services ($478 million), streaming radio services (up by 20 per cent to $387 million) and on-demand streaming services (up by 27 per cent to $163 million), grew by 23 per cent, making a total of $1.03 billion – up from $834 million in the first half of 2014.

The growth in music streaming services led to 33 per cent of total revenue this year, compared to 26 per cent in first half of 2014.

Digital music revenue, which contributed to 71 per cent of the total revenue in the first half of 2014, accounted for 77 per cent this year, raising its total to $2.3 billion. However, the decline of permanent downloads, which fell to $1.268 billion from $1.316 billion, did not affect the overall strong growth.

Paid subscriptions to on-demand services, which grew by 49 per cent in first half of 2014 compared to 2013, further increased this year by 25 per cent, amounting to $478 million in this year. (Apple Music was launched on the last day of the period).

Revenue generated in physical formats was $748 million, down 17 per cent this year as compared to 2014. CDs made up 66 per cent of total physical shipments in value, while Vinyl was up 52 per cent for the first half of the 2015, and accounted for 30 per cent of physical shipments by value.

Meanwhile, synchronisation royalties totaled to $95 million for the first half of the year, which was an increase of 4 per cent in comparison to the first half of 2014.