If you needed any more evidence that music streaming is taking over, look no further than Next Big Sound’s annual report on the state of the music industry.
In it, the music analytics firm says there have been over one trillion recorded streams in 2015 alone. That is one trillion times songs have been played on these services, with less than 100 million subscribers across all of the platforms combined.
Apple Music is a big part of this number, with 11 million subscribers in the two months of access. Spotify plays a bigger part however, with 80 million subscribers (split 60m ad-supported, 20m premium) listening to music daily. Smaller providers like Rdio, Deezer, Pandora and Google Play Music add to the pot.
While the report details the amount of plays on these services, the amount of revenue is still unaccounted for. Spotify is still apparently struggling to make a profit with its large licensing contracts, and Apple Music is making no revenue due to the three month trial for all customers.
There is also the numbers for ad-supported streaming unaccounted for, which makes up the vast majority of the industry at the present time. Even though Apple Music and Tidal are converting customers, Apple doesn’t have a paying customer and Tidal has less than a million current subscribers.
Taylor Swift, Adele, Coldplay, Jay Z and other artists have went against the ad-supported model, claiming it is not beneficial for the biggest or smallest. This has forced Spotify to look into new premium features to push freemium users to subscribe.
In the next few years, the music streaming industry is bound to overtake the music selling in revenue. Apple is confident that will happen, changing the iTunes Festival to the Apple Music Festival this year to promote the music streaming service.
Source: Next Big Sound