10 Years of Online Music

10 YEARS OF ONLINE MUSIC Over the past ten years the internet has changed the way we listen to music with physical purchases no longer being the only option. The advent of downloading and streaming music has given people more choice about how they access music. However, stats reveal that despite these changes physical purchases still account for the majority of music revenue globally. So, just how much has the internet changed the face of music? Streaming and Subscription Some of the streaming and subscription services available: In 2012 global recorded music Deezer has 12 million active users - * Spotify * Deezer 5 million of those are paid subscriptions. revenues increased by * Rhapsody * Rdio 0.3% to * Napster $16.5bn. • Paying a Subscriptopn 1 Block = 1m users * Xbox Music * Google Play As of the Rhapsody has 1.7 million paying subscribers split between Rhapsody and Napster. Revenues from music end of 2013, subscription services grew by 51.3% in 2013, topping $1bn. 28 million people were paying J for a music subscription 1,700,000 Paying Subscribers service. 51% Increase = 1m Subscribers In 2013, Google Pla Music All YouTube has become the go-to music service worldwide with 1bn users. Access was the fastest-growing subscription service. Spotify It now has over 40 million active users, making it the most popular streaming service. Launched in 2008, Spotify More than 10 Non aims to combat music million of its Subscribers 40 million piracy by providing a 'free and legal alternative'. Subscribers users opt for paid subscriptions. = 1 Million Users Spotify offers users access to over 20% In 2013, 4,500,000,00O hours of music was streamed via Spotify. 20m songs, of the songs on Spotify have never been played. with over 20,000 added per day. In 2013, 'The Most Played Song in a Single Day' was.. The most Over 1.5 billion Spotify playlists have been made since its launch. streamed artists of 2013 were Daft Punk's Macklemore 1,500,000,000 'Get Lucky'. & Ryan Lewis. Playlists Spotify pays royalties using the following equation: Per stream this Artists such as Thom Yorke averages out at $0.006 and $0.0084. have spoken out Spotify Monthly Revenue x Artist's Spotify Streams / Total Spotify Streams x~70% to Master & Publishing Owners x Artist's Royalty Rate: Artist Payout about their disproval of this method with the Radiohead star $ $ $ removing his material from the service. Since its launch in In 2013 2008, Spotify has paid more than $1bn in royalties (£612m). alone it paid out $500m (£306m) in royalties. 1 Billion Downloads Around 63% of all digital music sales are via iTunes In 2004, on average On average more than 14,000 15,000 songs songs were downloaded from iTunes per DDPDP are now downloaded from week. iTunes per minute. The US Billboard Hot 100 started counting digital downloads towards the main In Q1 of 2014 sales of Robin Thicke's digital tracks were down 12.5%, controversial 'Blurred Lines' was the top selling digital single globally in 2013, selling 14.8m copies. albums dropped to 14.2% CD sales dropped to 31.9m from 40.1m the year chart from before. February 2005. #BLURREDLINES • The Drop Difference In France 17 of the top selling albums of 2013 were by local artists, up from 10 in 2011. Adele's 2011 album '21' broke Apple's European album download record selling over 1 million digital copies. 2013 ******** ********* 2011 1,000,000 Digital Copies ***** Illegal Downloads According to a survey carried out in Finland, on average pirates illegally download 2,900 music files but only 90 movies. The cost of piracy to the music industry in the US is estimated to be $13.5 billion (£7.4bn). The 10 years following Napster's emergence saw music sales in the US drop by 47% from 14.6bn Music 13,500,000,000 to $7.7bn. Movies Dollars In 2013, Google removed more In 2009, Joel Tenenbaum was ordered to pay Song writers usually get about 8% of the cost of a track bought online, for a 99c single that equates to 7.92c per download. than 200 million links to alleged pirate content. $675,000 in damages to US music labels for illegally downloading 31 songs in 8% 2007. In 2012 it was revealed that the US is the worst country for illegal music downloads, followed by US UK the UK. Physical Purchases Digital singles sales in the Physical sales 193 million CDs dropped from 60% in 2011 to were bought in 2012 compared US fell 5.7% from 1.34 51% in 2012, with 118 million 5.7% billion units to however these digitally sales still account downloaded 1.26 billion in for the majority of industry albums. 2013. revenues. Many major markets, Despite the rise in streaming, vinyl sales have also risen including Germany, Italy the UK and the US saw the rate of decline in physical sales significantly in the US and UK by 32% and 101% slow-down. Whereas respectively in 2013. France's physical sales grew by about 0.8%. Facts 2009 oo Downloads have Beyoncé's cover of Etta James' 'At Last' from made it much easier President Obama's for old songs to re-enter the chart. saw Journey's 'Don't Stop Believing' become inauguration in 2009 became the most downloaded 1960s song in the US that year. the most downloaded song of the 1980s after featuring on Glee. At Last Released in December 2013, Beyoncé's self-titled album became iTunes' fastest selling album ever, selling 828,773 copies in 3 days and becoming number 1 in the iTunes chart in Twitter has fast become a link between artists and fans, allowing the two to interact on some level. As of 27/05/2014 3 of the top 5 Twitter users with the most followers were music artists. * Katy Perry – 53.3m * Justin Bieber - 51.9m * Barack Obama - 43.2m 104 countries. 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