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.
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).