Good news for artists. Music fans are streaming more music through on-demand audio streaming services than video streaming platforms…
According to BuzzAngle, Americans are consuming more music through on-demand audio streaming services than through music video platforms.
In the first six months of 2016, Americans played more than 114 billion audio streams on streaming platforms like, Spotify, Apple music, Tidal, as opposed to 95 billion video streams on music video platforms like YouTube.
What this information suggests, is that people are starting to focus more on listening music rather than just watching music videos.
In total, on-demand streaming in the US grew by 58% in the first six months of 2016 when compared to the first six months of 2015. This increase was fuelled by a rise in on-demand audio streaming – this increased by over 107%, whereas video streaming grew at a lower rate of 23%.
The majority of on-demand music streaming came from paid subscription services like Spotify (30 million paid subscribers) and Apple Music (15 million paid subscriptions) which charge users $9.99 per month. On these services, artists earn more revenue, as the per-stream royalty rate is higher than that on ad-supported free streaming services.
Most people watching music videos do so through YouTube, and although YouTube now has a paid streaming service (YouTube Red), the actual number of people signed up is unknown and thought to be a very small fraction of the one billion people who use the service for free. Artists earn significantly less from free streaming services like YouTube than they do on paid subscription services like Spotify, Apple Music and Tidal.
So, the fact that people are now consuming more music through on-demand audio streaming, as opposed to video streaming is good news for artists.
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