06 January 2014

The Wall Street Journal: “Dollar-and-Cents Secrets of Music Streaming”

Data reviewed by The Wall Street Journal showed that one major record company makes more per year, on average, from paying customers of streaming services like Spotify or Rdio than it does from the average customer who buys downloads, CDs or both.

The average "premium" subscription customer in the U.S. was worth about $16 a year to this company, while the average buyer of digital downloads or physical music was worth about $14. […]

The lesson for record companies and artists appears to be: making disposable hits may once have been a viable business, but new technology could demand tunes built to last.

Ethan Smith

Wow, people actually listening to good music instead of pop one-hit-wonders?! Crazy!

Irony aside, if the data is real, it’s a good sign for the music business and it’s long time success – at a time when digital sales are stating to decline. Streaming is probably the most fair revenue model for artists: the more people like the music, the more they listen, the more the artist gets paid – and his record label as well!

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