Consumer Spending On Digital Music Actually Fell In 2014 (Yes You Read That Right) | Music Industry Blog

The Problem With Streaming, Is The Problem With Streaming… Mark Mulligan Reports.


“Though the drop was small – 1% – it was still nonetheless a drop at a period when digital spending should be booming.  In some key markets the consumer spending decline was significantly larger, such as a 3% fall in the UK.”

It’s just math. Better late than never… and here’s another newsflash from the way back machine that folks might want to start looking at again, Music Streaming Math, Can It All Add Up? That was 2013…

“The end goal has changed: Just under a third of free streamers go onto buy the music of artists they discover on these service while 37% simply stream newly discovered artists more. Both use cases will coexist for some time, but with with music purchasing fading phenomenon, the latter will dominate.”

The problem is at the top of the waterfall. This means the downstream economics are not going to get better than what’s going on at the top. This is the truth, no matter what nonsense they come up with over at CALinnovates, it’s the musicians are are right to demand better economics and transparency from the streaming companies.


95 Percent of Streaming Music Catalogs Are ‘Irrelevant’ to Consumers, Study Finds | Digital Music News

So about that long tail and digital empowerment for indie artists, hmmmmmm…

So why aren’t those numbers better?

Mulligan feels that a big part of the problem is that the average consumer simply doesn’t care about enormous selections and vast catalogs, and they’re definitely not willing to pay for it. “Most people aren’t interested in all the music in the world and most people aren’t interested in spending $9.99 (or the local market equivalent) a month for music,” Mulligan continued.

“Indeed, just 5% of streaming catalogues is regularly frequented. Most of the rest is irrelevant for most consumers.”

Surprise! Not all music is equal despite how much of it is being made.

Charge a premium for top shelf professional music and let everyone else give their music away if they want to. Stop exploiting professional artiss into free streaming schemes and scams.

As we reported in our post “Streaming Is The Future, Spotify Is Not Let’s Talk Solutions” we suggested consumer based tiered pricing based on value proposition. Glad to see this is starting to get some notice.