Music Streaming Surpassed Digital Stores in 2015


Mar. 31 2016, Updated 8:06 p.m. ET

Streaming accounts for 34% of revenues

Music streaming services like Spotify and Apple Music (AAPL) generated $2.4 billion last year. According to the RIAA (Recording Industry Association of America), streaming services surpassed digital stores sales for the first time in 2015.

As seen in the following chart, the revenue from music streaming accounted for 27% in 2014 and 34.3% in 2015. This indicates a shift in user preference.

Article continues below advertisement

Revenue from paid subscriptions rose 50.3% YoY

According to the report from the RIAA, the revenue from paid subscriptions for services such as Apple Music, Tidal, and Spotify rose 50.3% YoY (year-over-year). Ad-supported on-demand outlets such as YouTube (GOOG) rose 30.6% YoY in 2015.

Apple Music passes 11 million subscribers

Last month, top Apple (AAPL) executives Eddy Cue and Craig Federighi stated that Apple Music has more than 11 million paying subscribers. This indicates growth of 10% over its 10 million subscribers at the end of December 2015.

Apple directly competes with Pandora (P). Currently, Pandora leads the Internet radio market. Major players including Google (GOOG), Samsung (SSNLF), and Amazon (AMZN) started to offer these services as well. Apple accounts for 15.6% of the Technology Select Sector SPDR (XLK).


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.