Credit Suisse, a prominent financial group, has produced an optimistic report on the future of the recorded music industry. Including an increase in revenue globally in 2016. The analysis, according to an article released on the Music Business Worldwide website, the recorded music industry will return to sustainable growth in 2016. This growth is largely due to streaming services like Spotify. The Credit Suisse report suggests three main reasons for the optimistic streaming future: Subscriptions to Spotify, Deezer or Beats Music generates 2.4x the annual revenue for the industry. Because margins earned by paid streaming revenues are substantially higher than physical and digital revenues. The migration of consumption from physical and digital downloads to streaming is lucrative to the music industry overall. Thirdly, the model streaming services offer consumers, including free discovery and access to playlists shared by artists and friends. The report estimates this model stands a chance of encouraging of some of the 50% of consumers in developed markets.
Good things come to those who adapt! And if the industry continues to adapt to the increasing success of streaming services there can, hopefully, be growth in the industry we haven’t seen in years.