It is official according to Bloomberg News cd’s have been
the largest U.S. revenue source but all of that will change this year.
Downloads and streaming services such as Spotify, and Pandora is scheduled to
surpass cd sales by the end of the year. According to the Bloomberg research,
U.S. digital music sales will exceed 3.4 billion dollars eclipsing the 3.38
billion dollars in revenue that CDs and other physical music products such as
records.
What is even more exciting is that record labels have
noticed the sharp increase in digital and streaming music and now have begun to
license artists catalogs to various streaming services and digital platforms.
This is a great opportunity to capitalize on all of the extra revenue being
generated through these platforms while the Bloomberg report states sales of
digital is expected to only climb to 6.7 percent while the streaming music
revenue will climb to 28 percent this year.
This is a blessing for up and coming artist as well as
established artist, many of which saw a sharp decrease in revenue while record
labels tried to make heads or tails of the new digital media boom. Due to the
previous business structures that many companies had come to rely on a serious reconstruction
was in order to keep up with the changes that technology had brought us.
I really found this post informative. I had no idea that digital sales and streaming had surpassed CD sales. I also agree that this is great thing for independent artists who generally have less capital. Thanks for sharing this information. Great post!
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