For the first time this year, income from the internet in music sales worldwide will exceed the income from physical album sales such as CDs or records. In the near future, this process is expected to accelerate and revenues in the world of music will be obtained entirely from the internet.
Internet revenues will increase 37%
Consulting firm PwC, in its new report on the entertainment industry, revealed that as the habits of listening to music through internet services such as Spotify and Apple Music increase, physical income in music sales will decrease significantly.
According to the report, at the end of 2017, the income from the internet in the music sector will increase by 37% to reach 9.1 billion dollars. Revenue from album and CD sales will decrease 10% to $7.7 billion. The sales of music, in which the USA and Europe constitute the biggest markets, are generally increasing.
Digital revolution in the music scene
The era of listening to music on the internet started with the Napster program, which appeared about 20 years ago. Napster, which caused quite a lot of controversy due to the copyright problem, made it possible to download music from the internet. This innovation radically changed the habit of listening to music and buying albums.
This new era, which started with Napster, led to the emergence of many new applications. According to the Financial Times, today, online music services such as YouTube, Deezer, Amazon and Pandora have more than 100 million subscribers.
These platforms, which allowed uncontrolled access to music in the first place, were taken under supervision with the completion of their legal regulations over time.
Goal is $49 billion
Major companies such as Universal Music, Sony Music and Warner Music earn income every time musicians like Drake, Adele and Beyoncé are listened online.
Income titles such as ticket sales, language fees, and sponsorship brought the music industry $47.2 billion in 2016. In 2017, this figure is expected to reach $49 billion.
Video broadcasts is the future
The biggest income is live music broadcasts and concert broadcasts. This shows us that in the digital world, the music industry will continue to grow through videos.
According to the published research report, income from online video channels such as Netflix, Hulu and Amazon Prim will surpass DVD and Blu-ray sales. Investment firm Kleiner Perkins Caufield & Byers found that Spotify generated 20% of global music revenue and Netflix achieved 30% of home entertainment revenue.
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