Some in the music industry believe that Spotify and music streaming cannablizes download sales. Not so, says the CEO of digital music innovator X5 Music, at least when it comes to Spotify's apps. X5 created a classical music discovery and playlist app, Classify, attracting 500,000 Spotify users it in under a month. According to the company, the app has also propelled the X5 digital album "The 50 Greatest Pieces of Classical Music" to a #1 on iTunes.
- It reached #1 on iTunesâ Classical chart and broked into iTunes' Top 200 Albums chart for the first time since release
- The album achieved a 412% increase in streaming volume, compared to the month prior.
- Streams of the album have grown more than 55% a week.
- Average daily streaming volumes are approximately 830% higher than they were prior to Classify's launch.
- During this same period, with no other marketing or promotion, sales of the album increased by approximately 50% on iTunes.
"The recent sales spike for '50 Greatest Pieces of Classical Music' follows the same trend we have seen in Sweden, where there is a positive correlation between Spotify streaming and digital sales," X5 CEO and co-founder Johan Lagerlof said. "We have known for some time that streaming services do not cannibalize sales from traditional music outlets, and this growth makes that even more clear."