JUser: :_load: Unable to load user with ID: 3653
Tuesday, 08 March 2011 11:26

Music industry far from dead, new report says


Reports of the demise of the music industry are apparently overstated, with global digital music revenues set to hit more than $20bn by 2015, out of which 35% are derived from Asia-Pacific.

However, while this is a compound annual growth rate (CAGR) of more than 28 per cent from 2010 to 2015 in Asia-Pacific, researcher Ovum has found that the music industry is not maximising digital music revenues mainly because of the amount of free music available online.

Ovum analyst Mark Little said: 'Digital music will experience what might appear to be healthy growth over the next five years, but there is a danger that this could mask the fact that the industry is not maximising revenue potential'.

'There is too much free music available in the digital economy and not just the illegal kind. Free Internet radio such as Pandora or Grooveshark, and freemium on-demand music services such as Spotify, are offering free music without maximising advertising or premium subscription revenues for themselves or the industry.'

Ovum's forecast predicts that Asia-Pacific revenues from music subscription services will grow at a CAGR of more than 40 per cent from 2011 to 2015, as consumers recognise the benefits of being able to access millions of streamed songs for the price of a CD every month rather than owning individual downloads. Subscription growth will also be driven by technology giants Apple and Google, as well as Spotify, which are all expected to launch digital music subscription services this year. Meanwhile, Sony launched 'Music Unlimited powered by Qriosity' in February.

The combined effect of an increased share taken by music subscription services and the large amount of free music available is slowing growth in paid online music downloads, down to just 3% in 2010 in the US - a trend expected to cross the channel before long.

Services like Spotify and Pandora are not currently available in Australia, however they have hinted at launching here in the future.

Subscribe to ITWIRE UPDATE Newsletter here


The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.



Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News