How Streaming Affects Music Revenue Growth - hypebot

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Alternate1985

Here's what makes this so complicated to research and understand. Just taking the top 3 talked about in this post, Sweden, Norway, and Finland, we can find a couple of things that completely and totally confuse the situation:

First is Sweden, which is the capital of Spotify. With less than 10 million people, surely a company as widely known as Spotify is going to sway the numbers within their own country. Sports teams, companies, local music, and many other things work this way. Pride is a powerful revenue generator. Interestingly enough, Sweden is also the capital of something else. The Pirate Bay. Which was founded there in 2003. To confuse the situation even more, Ek, born in Sweden, was the CEO of uTorrent. Who really knows what drives that country's interests.

The second one is Norway. 2 things here. One is the music industry in Norway has been growing steadily since the late 90s. Well before streaming took off. But interestingly enough, right around the time of broadband, which was about 2000. Also, ISP's have no restriction on download amount. Two, Norway's music industry is subsidized by the government to the tune of about 30%. This means grants, education, etc. Which could easily be driving the increased interest in music.

The third one on the list is Finland. This one is extremely interesting. Take a look at these 2011 music industry revenue totals http://cl.ly/image/3T0b3U0Q4300. Live music represents half of the revenue and government subsidies represent about a third (just like Norway). And even crazier, royalties generated more revenue that actual sales of recordings. Which basically means no one is buying shit there.

I tried looking for Government Subsidies for Sweden, something that I've been trying to find for a while, but it's difficult. The only thing I can find is 2006, which was about 12 Million SEK. Which is basically nothing. I'd love to see the numbers for 2011 and up. If someone can find them, please post. Also something else that's interesting and worth noting, Denmark, which is part of Scandinavia has also seen major digital growth, but overall revenue has steadily been decreasing for a while http://cl.ly/image/2p3j061u0U07. Streaming represents about half (47.4%) of the digital revenue too http://cl.ly/image/2E463J1u0r3m. I definitely think you'll see growth in the Denmark music market in 2015 or possibly 2016, seeing as how digital represents half the revenue and overall losses are flattening.

I could go on forever about this stuff. I definitely think you need to consider the piracy and free music culture of that area, before you jump on the bandwagon. But it's definitely fun to research, and obviously either way, their music economy is growing (or one could argue rebounding), so more power to them.

All difficult to find backup can be downloaded here http://cl.ly/0B233Q110W09

Finally, nice job by Mark on this one. It definitely got me thinking, researching, and writing.

Nick Mango
http://twitter.com/alternate1985

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