With 79% of music industry revenue coming
from streaming and digital sales at an all-time
low, it’s clear the future of entertainment is via
subscriptions. But in a world where everything is
rented, questions must be asked over budgets,
and the evolution of content consumption.
THE NEXT BIG THING
When Apple announced the launch of its
dedicated music subscription service in June
2015, many pondered whether the end of
iTunes was in sight. Though consumers were
favoring services like Spotify over buying songs
individually, it appeared that Apple would always
hold a flag for its ailing music and video store,
which generated hundreds of millions of dollars
in revenue. Fast-forward five years and the
landscape couldn’t be more different, with iTunes
all-but-removed from macOS and the iTunes
Store no longer the powerhouse it once was,
with Apple aggressively pushing its successors
- dedicated Apple Music, Apple Books, Apple
Podcasts, and Apple TV applications - instead.
A new report from the Recording Industry
Association of America sheds further light on the
situation, showing that streaming services are
in control, with digital sales hitting their lowest
point since 2006, signaling a shift in the way
consumers purchase and consume content.
In 2019, revenue from streaming music grew by
a quarter, generating more than $11.1 billion
across the year, with paid streaming services
like Spotify and Apple Music accounting for $6.8
billion of that revenue. The rest comes from ad-
supported services like YouTube and Spotify’s
free music tier, which has remained a popular
choice amongst Gen Z.