Every Day Major Music Companies Earn $10M Millon, Indies $5 Million In Streaming Revenue
With average payments hovering around $.00575 per play, its easily arguable that Spotify, Apple Music and others music streamers are not returning sufficient revenue to creators. But in aggregate, music streaming has quickly become a major source of revenue for both independent and major labels.
Recent earnings reports show that major music groups are collectively earning $10 million every day from audio and video streaming.
This week Sony Music reported a 39% year-on-year rise in digital streaming revenue to $25 million a week or $3.3 million per day. Universal reports earning just over $4 million per day and Warner Music logs in at about $2 million a day in revenue from audio and video streaming. That totals just shy of $10 million a day being paid by Spotify, Apple, Google, Deezer and others to the 3 dominate music groups.
Assuming that independent music companies* are logging similar revenue, and several stats that we've seen show that indies are experiencing in faster growth in streaming revenue, they are earning more than $5 million per day from streaming revenue.
Collectively, the music industry is now earning more that $15 million every 24 hours or almost half a billion $'s per month from music and music video streaming.
* Independent record labels represent 37.6% global recorded music market share according to a recent WIN study
Really interesting to see the numbers. Just when we thought iTunes & digital downloads had taken over the music industry, streaming arrives. There’s got to be enough money available (especially since the arrow is still pointing up) for these companies to be profitable while fairly compensating the artists.
I know for myself, I was definitely against the idea of streaming (vs. “owning”) music for quite some time, but gave in to a free preview of Google Play Music late last year and now remain a subscriber and use it all the time!
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