Music Industry Sees First Big Gains in 20 Years Thanks to Streaming Services

Thanks to subscription-based music streaming services, the music industry is seeing a significant growth for the first time in nearly two decades. According to International Federation of the Phonographic Industry (IFPI), an industry trade group, the global music sales rose 3.2 percent last year, also surpassing those from all physical music formats. The important tipping point in 2015 saw digital services account for 45 percent of recorded music revenue. According to the report, Spotify, Apple Music and other music streaming services brought in about $2.9 billion in revenue. The findings are in line with Recording Industry Association of America (RIAA)'s estimates from last month. IFPI also noted that music on free streaming services such as YouTube has also grown quickly, creating a panic among record labels and artists alike. Billboard elaborates that aspect: In criticizing ad-supported services, the IFPI joined a growing list of trade bodies and music company executives to criticize YouTube for paying royalties that are relatively low when considering its popularity. The report argues YouTube distorts its negotiations with labels by hiding behind the DMCA "safe harbor" rules that limit the liability of online intermediaries from the infringing actions of their users. The result, the IFPI argues, is YouTube can use an "act first, negotiate later" that "fundamentally distort[s] the negotiation process."

Comments

A suggestion

[Ol Olsoc]

Now they might try putting out music that didn't suck. Seriously, today's twerk-a-licious and computer generated, autotuned stuff makes 1960's bubblegum music and disco look good.

Re:A suggestion

[bluefoxlucid]

The amount of double-think is astounding. They're selling precisely what brings in the most money, continuously, in a constant and reliable model, and you're criticizing the model and saying it's going to destroy them.

Re:A suggestion

[Megol]

LOL! Try to realize that people once complained about Mozart creating crap music and then realize whatever kind of music _you_ prefer actually is still created! In essence you think you are the arbitrator of what suck and not, just as every generation have thought the "new" kind of music worse/more immoral than the thing they grew up with.

Youtube hiding from RIAA behind the DMCA

[BarbaraHudson]

So, the music industry, which until now absolutely loved the DMCA because they could hide behind the "good-faith" clause, is now upset that someone else is doing the same thing? Go cry me a river, then look up "Law of unintended consequences."

Just in time to screw it up

[ilsaloving]

So streaming has caught on and people are liking it. It's making money. That means it's now the perfect time to start balkanizing the industry with exclusives to specific services, raise prices, and strangle it before it gets any bigger.

I mean, if the music industry is doing well, they won't be able to bitch and moan and lobby gov't to impose more and more draconic legislation to combat piracy.

Two questions:

[kheldan]

1. Are the artists actually being compensated properly now?
2. Assuming the answer to #1 is 'yes', is the music industry going to stop whining now?

Re:Napster was a visionary leader

[spire3661]

Napster broke the monopoly on music. Up until then you had to buy a whole album for one song. Napster was the market correcting itself. The industry brought it upon themselves. If a kid in a dorm can obsolete your business model in a 3-day coding spree, your business is not viable.