RIAA Releases 2017 Stats: Physical Music Sales Outstrip Digital Sales:
The RIAA (Recording Industry Association of America) has released its report for 2017. Overall the industry is still growing, mainly on the back of streaming, which now accounts for 65% of revenue for the recorded music business. Streaming delivered $5.7 billion in 2017. Another remarkable number is that physical sales have become a greater percentage than digital downloads as a part of total revenue. 17% of total revenue came from physical sales, still CDs, but a growing percentage from vinyl, while digital downloads now only account for 15%. Downloads are down by nearly 25% as users shift their online habits to streaming. Read the report here.
Warner Music Group Purchase A&R Scouting Tool Sodatone:
Warner Music Group is looking to enhance it’s A&R capabilities with the acquisition of talent scouting company Sodatone. Founded in 2016, the Toronto-based startup looks at streaming, social and touring data to try and identify unsigned talent. It looks at indicative data such as online engagement, fan loyalty and even attempts to predict virility of a demo. Terms of the deal were not immediately released.
Read more here.
Spotify Says It Will Hit 100 Million Paid Subscribers By End Of 2018, Lower Losses:
With its Wall Street listing only a few days away, Spotify is painting a very nice picture of what investors can expect for 2018. It says that it will grow its paying subscribers up to 100 million by the end of the year and around 200 million monthly active users.
Spotify is also projecting better number financially for the company in 2018. Its total revenue is projected to hit €4.9 billion-€5.3 billion ($6.1 billion-$6.6 billion) in 2018, up 20-30 percent year-over-year according to Billboard. It also has no outstanding debt because of the deal with two large shareholders, TPG and Dragoneer, will see them convert their debt to equity once Spotify goes public and then sell their shares to Tencent.
Spotify’s listing date is April 3.
Napster, SoundMachine Launch New Premium Streaming Service For Business:
Napster is teaming up with SoundMachine on a new streaming service venture aimed at businesses. It will combine Napster’s catalog and streaming expertise with SoundMachine’s scheduling and management features. The service is available now in the United States, Canada and Spain. It will allow businesses to access hundreds of human and AI programmed stations with music fully licensed in the U.S. via ASCAP, BMI, SESAC, and SoundExchange and in Canada via SOCAN and RE:SOUND. Businesses can also add their own messaging to play in between music according to Hypebot.