In today’s digital age, streaming has become the go-to method for consuming music. With the convenience and accessibility it offers, it’s no surprise that paid and ad-supported streaming services have seen a significant increase in popularity. This has been reflected in the recent report by the British Phonographic Industry (BPI), which stated that gains in paid and ad-supported streaming have helped to offset slowing growth in physical formats.
The BPI’s report, which covers the UK music market in 2018, revealed that streaming now accounts for nearly half (47%) of all music consumption. This marks a 34% increase from the previous year, with a total of 91 billion audio streams in 2018 alone. This significant growth in streaming has contributed to the overall increase in the music market, with a 5.7% rise in total revenue to £1.33 billion.
One of the notable findings in the report is the impact of paid streaming services such as Spotify, Apple Music, and Amazon Music. These platforms saw an increase in subscribers, with a total of 7.9 million subscribers reported in 2018. This marks a 34% increase from 2017 and has helped to generate a record £829 million in revenue, a 32% increase from the previous year.
But it’s not just paid streaming that has seen growth, ad-supported streaming services have also played a significant role. Platforms such as YouTube and Spotify’s free tier have seen a 27% increase in their revenue, generating a total of £136 million. This is an encouraging sign, as it shows that even those who are not willing to pay for a subscription are still contributing to the growth of the industry.
The BPI also acknowledged the role of higher subscription prices in the increase of revenue. While some may view this as a negative aspect, it actually shows the value and demand for music in the streaming era. The BPI’s Chief Executive, Geoff Taylor, stated, “The continued surge in music consumption and the fact that more people than ever before are prepared to pay for music is a testament to the ongoing innovation and investment by artists, their labels, and the streaming services.”
But it’s not just streaming that has seen growth, physical formats have also contributed to the overall increase in the music market. While the growth in physical sales has slowed down, it still remains an important aspect of the industry, accounting for 25.3% of total revenue. Vinyl sales, in particular, have shown a 1.6% increase, with a total of 4.2 million LPs sold in 2018. This not only shows the enduring appeal of physical formats but also the importance of catering to different consumer preferences.
Overall, the BPI’s report highlights the resilience and adaptability of the music industry in the face of a constantly evolving market. The rise of streaming has brought about new opportunities for artists, labels, and streaming services, and has ultimately resulted in a positive impact on the music market. With the increasing popularity of paid and ad-supported streaming, as well as the enduring appeal of physical formats, the future of the music industry looks bright.
As we continue to see growth and innovation in the music industry, it’s important to recognize the value and importance of supporting artists and their work. Whether it’s through paid subscriptions, ad-supported streaming, or purchasing physical formats, every contribution helps to keep the industry thriving. So let’s continue to embrace the digital age and all the opportunities it brings, while also acknowledging the importance of traditional formats. The future of music is in our hands, and together, we can ensure that it remains a vibrant and dynamic industry.
