Digital music streaming will become the largest source of global recorded music sales for the first time this year. Revenues from services including Spotify and Apple Music are poised to surpass sales of CDs and vinyl records, according to a new forecast from professional services firm PwC. Streaming revenues will rise 37 per cent to $9.1bn in 2017, PwC estimates, while sales of physical formats will drop 10 per cent to $7.7bn.
The Music industry has continued to turn the corner on nearly two decades of decline. The market was worth $17.2B in 2016. Total music revenue is forecast to increase at a 5.6 percent CAGR to reach $22.6B in 2021. The ongoing growth of digital music streaming – up an astonishing 99.1 percent year-over-year in 2016 to total $3B – was THE music story of last year as consumers turned in huge numbers to on-demand services. Competition for new subscribers will likely be fierce in 2017. In addition to the uptick in streaming, the live music sector continues to deliver, with fans appearing to have a nearly insatiable appetite for music events and festival brands eager to franchise overseas.