Streaming transforms music industry

Warner Music Group has reported its highest full-year revenue in
eight years – up 9% to $3.2bn. Warner is the first global record company to identify streaming as its largest source of income

Global recorded music industry revenues (US$ billions)

Physical sales

Performance rights

Digital (excl. streaming)

Streaming

Synchronisation revenues*

Estimates by PSAM

2016: 60 million paid streaming subscribers

2006: Spotify founded

2015: Digital/streaming exceeds physical for first time. Apple Music launched

       
0 5 10 15 20 25

2006 16.2 2.1 1.0

07 14.0 2.9 1.2

08 11.8 3.7 1.3

09 10.3 3.7 1.3 0.4

10 8.9 4.4 1.4 0.3

11 8.1 4.2 1.4 0.3

12 7.5 4.4 1.1 1.6 0.3

13 6.7 4.2 1.6 1.8 0.3    

14 6.1 3.7 2.4 2.0 0.3

15 5.8 3.0 3.7 2.1 0.4

16 4.9 2.8 5.4 1.6 0.3

17 4.4 2.6 7.7 1.7 0.3

2020 3.7 2.1 17.9 2.0 0.3

*Music used in films, television, advertisements, video games etc. 

Sources: IFPI's Global Music Report 2016, P. Schoenfeld Asset Management