“For the first time since the birth of the modern entertainment business in the late 1950s, more revenue is coming from payments for ‘access’ rather than purchase in all three sectors – music, video and games” according to ERA CEO Kim Bayley.
UK revenues for paid-for music subscription services rose 38% in 2018 to £829m, resulting in subscription revenues counting for 62% of total recorded music revenues.
“Paid-for streaming has clearly yet to reach its full potential”, according to ERA CEO, Kim Bayley, following a recent report published by the Entertainment Retailers Association (ERA) which reveals that paid-for streaming services such as Spotify and Apple Music are set to overtake free for the first time in 2019.
Official figures released by UK record labels association, the BPI, show that British music consumption rose 6% in 2018, marking the fourth consecutive year of growth for the industry in a row. Streaming accounted for nearly two-thirds of this consumption (63.6%), with 2 billion weekly streams. Demand in 2018 was driven by a staggering 91 billion audio streams served through Spotify, Apple Music, Deezer and other audio streaming devices. In 2019 it is likely the landmark of 100 billion streams in a single year will be surpassed.
Classical music sales and streaming increased more than 10% in 2018, with 2.23 million Classical albums or their equivalent either being purchased, downloaded or streamed. Streams were up 42% on the year, now accounting for a quarter of classical consumption. Enhancing metadata efficiency, streaming platforms like OMiP are making it easier for consumers to locate specific pieces of music online, drawing more classical consumers to subscription streaming services.