Streaming Is Officially The Music Industry’s Cash Cow
If you have any doubt about streaming’s importance for the music industry check out this latest set of numbers. According to the RIAA streaming now accounts for 75% of the music revenue in the US. In fact, incremental revenue from streaming is driving the overall growth of the industry, which increased 10% in 1H’18 compared to 1H’17.
One important disclaimer in these numbers is that we’re only talking about revenue derived from music consumption. There are two other major sources of income for the music industry, touring and sponsorships, which are not included here. At least when it comes to music sales, the artists and labels are becoming increasingly dependent on streaming to support their industry.
Keep in mind the streamers themselves still aren’t making any money, but at least someone in the industry is.