Music industry move away from physical players began in 1999
Better music compression formats in late 90s (mp3)
Peer-to-peer sharing became mainstay (Napster, eMule, Kaaza)
Music industry failed to find way to leverage new format
platforms like mp3.com were early adopters of peer-to-peer
shutdown by labels through legal action
iTunes was first proof of concept that music labels could leverage IP for streaming
Growth of smart phones and broadband internet lead to widespread adoption
Music industry in 2024
Recording Industry in 2022 reported similar growth of 9% to previous 8 years ($26B)
This excludes live music revenue ($31B)
Largest markets in 2022:
United States (41%), Japan, UK
US has grown 9% from previous year
Largest shares of growth for streaming
United States
Europe
China
sub-Saharan Africa
Latin America
Middle East/Northern Africa
Revenue of Music Industry
Streaming - 67%
Physical (Vinyl, Cassette..) - 18%
Download - 4%
Performance Rights - 9%
Sync - 2%
Warner, Sony and Universal Music Groups accounted for nearly 70% of the market
Media diet for consumers
20.7 hours of audio consumption
32% audio streaming
31% video streaming
17% radio
9% purchased
5% social
4% live music
7% other (TV, Movies)
16-24 demographic cited short form platforms as primary way to listen to music
70% of artist revenue is gained from Live Music
‘Heritage Artists’ (whose largest tracks are 5 years or older on streaming platforms) brought in roughly $1.2 billion to Spotify
Non Music content
Spotify has invested heavily in non music content (podcasts/audiobooks) and services like advertising technology, analytics, editing tools and live audio streaming.