While a new study reveals music streaming has a neutral effect on music business revenue, it’s widely being seen as a victory for the music industry.
Despite harmful effects on digital downloads, the study from the National Bureau of Economic Research reveals that streaming’s effects on combating piracy have made up for the seeming loss of revenue. This change is being seen as a development by empowering music companies to once again become involved with the consumption of it’s product and follow insights unavailable with piracy. As streaming revenue continues to rise, indications suggest there’s good reason to be optimistic.
As Apple’s annual fiscal earnings continue to set new records for the company, few indications are given about their newcomer Apple Music. With the continuous surge in iPhone sales, this is encouraging given Triton Digital’s report that 78% of total digital music was streamed on mobile devices in August. The company has seen $13.9 billion growth in fiscal year net income -this rivals the entire global recorded music industry at $15 billion last year.
Troubling news for Pandora this week revealed that the company has lost 1.3 million listeners since the emergence of Apple Music and Beats 1. Pandora CEO Brian McAndrews downplayed these concerns as “short-term” and recognized that listening hours on the service has increased 3% despite the dip in listeners. He also noted “This was obviously a unique quarter in the streaming music business.”
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