The debate over the rise of streaming services and their significant impact on the ever-evolving relationship between consumers and businesses is one that continues to simmer within the industry. With sites like Spotify, TIDAL, Soundcloud and Apple Music breaking new ground with every step of their expansion, the industry methods used to turn a profit have largely been forced to either get with the times or be left in the dust. The argument in favor of their presence in the circuit has just been given important validity, however, following the release of the RIAA’s (Recording Industry Association of America) 2016 mid-year revenue report.
According to the three-page document, revenue earned from the streaming and selling of tracks and albums during the first half of the year has increased by more than 8% since the same time period in 2015. This indicates a period of growth more substantial than anything seen since the 1990s.
Paid subscription services like the ones offered by the above-listed sites surpassed $1 billion in revenue this year, effectively doubling that of 2015. 47% of the industry’s overall revenue came from streaming, 31% from permanent music downloads, 20% from physical purchases and 3% from synch.
To read the full RIAA report, click here.