For a long time, the music business looked grim, but this year, things finally took a turn. Thanks to streaming platforms like Apple Music and Spotify, the music industry is growing, for the first time in over a decade. In fact, analysts at Macquarie, are predicting that global recording revenues will double over the next 10 years. This is great news. As first reported by Business Insider, Macquarie analysts are expecting recorded music revenue to grow 5% in 2016, to ~$15 billion. Then will grow by 7% in 2017. Further down the line, in 2025, they predict that number will be $30 billion.
“We see upside to this level if Spotify’s launch in Japan, the second-largest territory and the one with the highest percentage of sales from physical, is successful,” the analysts wrote. “Amazon Unlimited Music (including mid-tier price point with Echo) should also boost growth in the UK and Germany (also a large physical market). Pandora Plus may also support even higher growth in the US.”
This is news I knew would come, but I just didn’t know how and when it would. In 10 years the music business should be close to what we remember it being like during the 90s. Not exactly but close… who knows, maybe better. As an independent record label in Florida, I can tell you that I’m excited about where the industry is going.
Here is a chart from Macquarie showing the predicted music industry growth: