Tuesday, 5 March 2019

Music streaming revenues have overtaken physical sales in the UK

"New digital services are turning the UK into a country of subscribers rather than entertainment buyers as music follows video and games to become a majority ‘rental’ market for the first time, according to figures revealed in the Entertainment Retailers Association (ERA) Yearbook, published today (March 5).
Revenues for paid-for music subscription services rose 38% in 2018 to £829m with the result that subscription now accounts for 62% of total recorded music revenues. Ownership formats like CDs, vinyl LPs and downloads now only account for 38% of revenues.
Key to the growth in people paying for access to music rather than ownership in 2018 was the work of streaming retailers like Spotify, YouTube and Deezer who continued to convert their free-tier users into paying subscribers, while Amazon introduced many more of its customers to its music streaming service - not least through the success of the Amazon Echo smart speaker.
Games first became a majority access rather than ownership market in 2016.  Video followed suit in 2017 with the rise of Netflix, Amazon Prime and Sky’s NOW TV.  This Subscription-Video-On-Demand (SVOD) sector grew by 31% in 2018 and is now responsible for over 55% of total video revenues.
Now music has joined the party to become a majority rental market."

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