It’s no secret that streaming services like Spotify and Pandora account for relatively little of an artist’s revenue stream. In fact, yesterday we showed you how Zoe Keating earned a mere $300 from Spotify during a five month period, compared to $45,000 from iTunes sales in the same time-frame. However, streaming services do seem to be doing well for labels – namely Warner Music Group. The company has said that streaming services contributed to 25% of the digital revenue that its recorded music group saw last quarter.
This is good news for Warner and other large labels because as streaming revenue continues to grow (marginally, but they are growing), they do not seem to be cannibalizing traditional digital sales from retailers like iTunes or from direct-to-fan sales from artists themselves.
This has always been a big concern of a number of artists and labels who refuse to put their catalogs up on streaming services, particularly Spotify. However, even some of the most outposken of them have seemingly given in to the promotional power and consumer demands of these services.