Music Streaming Hailed as Industry's Saviour as Labels Enjoy Profit Surge (theguardian.com)

Posted by msmash on Thursday December 29, 2016 @05:20AM from the meanwhile-in-the-music-industry dept.

Not long ago, the music industry was losing money left and right. Recession, rampant piracy, falling CD sales and a fear that "kids just don't buy music any more" had giant record labels, once oozing wealth, counting the pennies. But that all changed this year, and the industry's saviour is not what many predicted. From a report on The Guardian: Profits from music streaming, first championed by Spotify and now offered by Apple and Amazon, have given some labels their largest surge in revenue in more than a decade. At the beginning of December, one of the world's biggest labels, Warner Music, announced revenues of $3.25bn this year -- its highest in eight years. More significantly, $1bn of that was from streaming, more than double its download revenue and more than $100m more than its physical revenue. The surge in profits is being seen across all the major labels. In the first half of 2016, streaming revenue in the US grew by 57% to $1.6bn, and worldwide digital revenues overtook those from physical sales for the first time in music industry history, mainly because of streaming. This year's most-streamed artist was Drake, with 4.2bn streams.

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All of this has happened before... by Solandri · 2016-12-29 06:12 · Score: 3, Informative

All of this will happen again, given how backwards and recalcitrant the movie/music industries are when it comes to new technology.

They said the exact same thing about the VCR. They fought it tooth and nail, were forced to accept it by the courts, and a couple decades later most of their revenue came from videotape and later DVD sales and rentals instead of theater releases. They fought movie rentals tooth and nail, were forced to accept it by the courts, and a decade later something like half of their revenue came from movie rentals. They fought DAT (digital audio tape) tooth and nail, actually won and succeeded in making the product fail in the market. Only to be overwhelmed by the inevitable tide of technological progress as CD-Rs and eventually MP3/FLAC served the same function as DAT.