FREE REPORT: Can Streaming Revive the Digital Music Space?

on Nov29

by london | Stumble it | Digg it | Tweet this

The reportedly imminent launches of Apple, Google and Spotify’s music streaming platforms come at a time when the digital music space needs a shot in the arm. NPD’s assertion that just 50% of consumers purchased music in any format in 2010, with digital sales accounting for just 23% of total music sales, indicates that the space needs a compelling and financially-viable subscription streaming service that is affordable for the consumer.There is clearly a demand for music streaming in the US, with recent NPD figures claiming that 29% of Americans stream music online compared to 30% that download content. But can they provide the revenues needed to return the music industry to growth?

Certainly, US labels have previously thought not. The record companies have been reluctant to sign licensing deals over concerns these services would cannibalise lucrative album sales. However, Spotify’s rumoured progress with US labels in recent months is indicative of the record companies' shift in attitude. Spotify is now reportedly close to launching a full, unlimited subscription product in the US.

Spotify's launch could come ahead of an offering from Google, which is not yet believed to possess the licensing agreements necessary to bring its streaming product to market. Meanwhile, Apple’s intentions in the space are the subject of conjecture. The company was widely-expected to launch a streaming version of iTunes during the past year, however it is looking increasingly likely that it is creating a form of content insurance for users, enabling them to stream their previously-bought content from the cloud. Recent reports indicate that Apple is repositioning its MobileMe service as a ‘digital locker’ for users’ multimedia content and a recent Financial Timesreport claims that the company only plans to allow users to back-up their content online.

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