And let's face it - it is true that the streaming platforms are aiding the industry by the above-mentioned factors.
Currently, there are combined 180.3 million streaming users. According to MIDIA Research, this trend will gradually increase over the next years.
All in all, the future of the streaming platforms is bright, and there are continuous changes which we will follow with huge interest.
With the increase of streaming music subscribers, the music industry revenues also increased by 9.7% in 2018. As to streaming music - they gained increased revenues of 34%. As reported by the IFPI Global Music Report for 2019, the music industry revenues totaled US$19.1 billion - where streaming accounted for 47% revenues distribution.
Creating cultural diversity is another goal of the streaming music business and this way it aims to shift the music culture to new musical regions. Currently, Latin music has the number one non-English streaming popularity and it's quickly becoming a commercial force in the U.S. According to BuzzAngle 2018 Music Report, the Latin genre consumption on-demand streamers totaled for more than 95.5% on-demand streams.
Another important cultural change for the music industry is the K-Pop. It is a serious source of income in Asia and there are many western listeners.
The music industry needs to see new and diverse artists and streaming helps to achieve this, by having access to every music genre, language, and artist on the Internet.
As expected from the increase in streaming music subscribers and revenues, the market share also increased. In Latin America, the music market share grew by 16.8% - making it the globally highest rate. The reason for this is the strong influence of music streams (39.3% - IFPI Music Report). North America is the second highest region - with a 14% increase in market share, followed by Asia/Australasia - 11.7% and Europe - 0.1%.
Ultimately the goal is to create a globalized music industry, where it will give other music-developing countries a chance to grow. Moreover, music globalization enables culture growth, understanding, and unity. Streaming music helps the culture to be shared by distributing music all over the world.
But at what cost?
With the boom of streams, the physical music revenues decreased by 10.1% - as reported by the IFPI Music Report (2019). In fact, physical revenues have been increasing ever since the streaming platforms took over the Internet. However, they still take about 25% of the total music industry market revenues in 2018.
As reported from the music retailers - both physical and digital album sales decreased by 21.8% and 15.3%, respectively. Interestingly, an increase in vinyl (11.9%) and cassette (18.9%) sales can be seen, meaning that users tend to go for authentic, "retro" ways of music consumption.
In conclusion, streaming is low-cost access to a huge variety of artists, it helps to share new cultures, unify the music industry and build relationships that drive sales and revenues.
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