It’s being reported that music fans are more willing to actually pay for the music they consume. The news comes from MusicWatch’s Annual Music Study. This is another statistic that proves the narrative that the decades long slump in the recorded music business is turning around – thanks in large part to streaming music services.
The RIAA recently reported that US retail music revenue grew by 11% to $7.7 Billion. Streaming music has accounted for over half of that number. According to the study, music fans are now more willing to spend money on consuming recorded music. The number of US music buyers has grown by 5%
Although this isn’t as great as the recorded music business’ prime, it shows that people WILL spend their money on music as long as the VALUE is there for them.
According to HypeBot
That appetite is best illustrated in the number of Americans paying for an on-demand music streaming service, which grew 150% year-over-year, ending 2016 at 26 million. Despite a repertoire of excellent ad-supported streaming options, millions decided to trade up to a paid version offering more flexibility and features. The potential has been barely tapped. Even with the enormous growth in 2016, only ONE in NINE internet users aged 13 and older are paying for a stand-alone music streaming subscription. With Spotify continuing to grow subscribers and new entries from Pandora, iHeart and Amazon there will be more opportunities to evangelize paid music subscriptions.
But the growing retail numbers can be misleading for some stuck in older paradigms of sales and consumption. Ownership of recorded music products continues to slide, down again this year. However, even according to 57% of millennials, owning the music IS still important. However, outside of major musical acts, the excitement to purchase CDs and albums is not there like it once was.
What’s even more interesting is music piracy – the thorn in the side of the business for 20 years – is on the decline. Illegal file sharing as it relates to music is down 14%. What that says about the state of music is that value potentially trumps the idea of free.
It’s not just the United States seeing growth, either. The UK music market grew by 5% and even Sweden’s music market grew by 6%.
All in all, the state of the music business has never been better. There is more music being made today than ever before, and people are actually willing to pay for the access. Analysts say there are still hurdles to be overcome, but this latest study in the music business is quite optimistic.