After a long downward spiral, the music industry is finally back and growing again for the first time in over a decade thanks to streaming services like Spotify and Apple Music. And this is just the beginning
According to analysts at Macquarie, who predict that recorded music revenues will double in the next 10 years. The Macquarie Group is a global investment banking and financial services group that provide advisory and investment services to institutional, corporate and retail clients around the world.
The analyst wrote that they expect recorded music revenue to grow about $15 billion in 2016, which is a 5% increase. And by 2025 they predict the number to be $30 billion. And in comparison to the revenue in 1999, which was $40 billion, this is nothing. This would be an insane comeback for an industry that has been stumped for the past decade.
Macquarie says that the main sources that it will take for the industry to get back on its tracks is the continues ascendance of streaming services. Weather thats Spotify, Pandora or to Amazon’s new music services. They said “streaming will grow to 50% of the market by mid-2019 and to 80% in 2025, based on our forecasts.” The industry will expand while taking the revenues up with it.
“We see upside to this level if Spotify’s launch in Japan, the second-largest territory and the one with the highest percentage of sales from physical, is successful,” the analysts wrote. “Amazon Unlimited Music (including mid-tier price point with Echo) should also boost growth in the UK and Germany (also a large physical market). Pandora Plus may also support even higher growth in the US.”
by McKenna Marchant
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