Music’s Role In Digital Content Is Small And Shrinking
- unknown
- 26 févr. 2016
- 1 min de lecture
... focused on : Digital Music - Online Video - Mobile Apps
The big difference is that the annual ARPU (average revenue per user) of a King customer is $290.41 while for Universal Music the annual ARPU of a streaming music subscriber is $29.77.
... digital music (at retail values) will be just 10% of digital content revenue by 2020, down from 16% in 2015.
Yet music continually punches above its weight. Its impact on culture and emotions far outweighs that of apps and music artists still have far more dedicated fan bases than actors generally do (for now at least).
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The clear risk is that music rights holders (Major labels) eventually overplay their hand, demanding too much from partners with too little flexibility. I have been hearing for some time from a number of ‘partner’ companies that they are beginning to question whether music is worth the hassle. Meanwhile SVOD services and YouTubers are waiting eagerly in the wings
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Another part of the equation is that recorded music revenue only paints a small part of the global music industry picture (i.e. also including publishing, live and merch). In fact, recorded music has declined from being 60% of all music industry revenue in 2000 to around 30% today. Most artist managers now view recorded music primarily as a marketing platform to drive live revenue. Unfortunately record labels aren’t in a position to think that way.
see full article on MusicIndustryBlog
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