Report: Streamed Music Revenues to Grow 40% this Year

June 10, 2013

As the online music industry shifts from pay-per-download to streamed music, revenues from the latter are expected to increase 40 percent to $1.73 billion in 2013, according to a report from U.K.-based consultancy Juniper Research. Growth in the segment, which will increasingly result in the use of online subscription billing payment models, is being driven by a growing number of alliances between mobile network operators and third-party players, the report said.

“Much as the wider content industry is transitioning from the pay-per-download model to one based on an ongoing revenue stream through in-app purchases for content that can be accessed seamlessly across multiple devices, so the mobile music industry (and, indeed, the digital music industry in general) is seeing a marked increase in what are essentially freemium services,” the report said. “These are streamed services such as Pandora and Spotify where the consumer can take a free basic tier and—if he or she chooses—upgrade to a paid service with additional features and functionality.”

However, Juniper still expects growth in the pay-per-download segment due to its adherence by Apple and iTunes. Streamed music revenues are highest in Western Europe, followed by the Far East, but the U.S. represents the largest single-country market for the format, overtaking South Korea for the first time in 2013.