Page 28 - AC/E Digital Culture Annual Report

28(creation, production, consumption...) all over the world. Leading platforms like Spotify, iTunes and Deezer are already o ering their servicesin more than 185 countries – a growth that was unthinkable at the start of the decade when they were present in about 20.Today there are more than 500 licensed digital music services operating all over the world and, more importantly, o ering consumers morethan 30 million songs. Digital platforms have brought a real, positive change for the traditional industry: they can monetise markets around the world much more e ciently.Today there are more than 500 licensed digital music services operating all overthe world and, more importantly, o ering consumers more than 30 million songs. They have brought a real, positive change for the traditional industry.Downloading platforms continue to account for the highest proportion of digital revenue, around 70%; even so, 40% of the growth in music consumption relates to streaming, making services for this type of consumption the fast- est-growing segment of the music industry and an important source of digital revenue. Subscrip- tion rates to streaming services are beginning to climb slowly, though in 2012 the number of paying subscribers increased by some 20 million all over the world, up 44% from the previous year.After more than two decades of instability, it seems that the music market is at last starting to recover. Following the alarm triggered by the advent of the internet, rumours about piracy and falling CD sales, pro ts have at last been recorded in 2016 thanks to streaming platforms.Today investment is usually focused on digital, and there is no point resisting this trend. The in- ternet o ers millions of people unlimited access to music for an increasingly reasonable monthly fee, as well as free, ad-supported subscriptions. By the end of 2015, paying subscribers to music streaming services all over the world numbered 68 million. According to Bloomberg Technology, revenue from streaming in the United States amounted to 1.6 billion dollars (up 57%) in the rst half of 2016.These gures show that the industry appearsto have found its feet. Most record labels, both large and small, have posted pro ts this year. Even so, according to a report by the RIAA, streaming platforms are still not doing enough to attract more subscribers, who are the real source of these pro ts.Ever since Apple began attempting to recover all the money being lost through illegal downloads via iTunes, many alternatives have emerged. The main one is undoubtedly Spotify, whose number of users and paying subscribers, which already stands at 40 million, has not even dropped despite the new impetus being given to Apple Music. The advent of other competitors is bringing new sources of revenue for the online music business. Amazon is working on a music platform of which there has been talk since June. And Pandora, the world’s leading online radio station, is developing a paid service which hopes to have converted 10% of its 18 million free users to premium by 2020.But are Spotify and Apple Music really the leading streaming services? No doubt they have the highest number of paying subscribers, but in terms of users we cannot omit to mention theTHE MUSIC MARKET GOES DIGITAL · ROBERTO CARRERASSmart culture. Analysis of digital trends