How well/bad is the industrial music scene doing in the digital download/streaming market? We found it out for you.Posted on 18/08/11
In the past few months many industrial bands and labels have been quite pessimistic on streaming music services. They would not be generating enough revenue and would cannibalize on the existing download stores.
But is this really the case? We at Side-Line decided to check into the digital sales from 10 labels from this scene and compare 2 months, June 2010 and June 2011 (editor's note: Due to contractual obligations we cannot reveal what labels we have checked on, but let's say, it's somewhat the top 10 of today's industrial scene).
Here are the results as far as the type of music delivery is concerned:
- June 2011
- download: $63,800
- stream: $10,350
- other: $2,500
- radio: $810
- ringtone: $69
- June 2010
- download: $48,000
- stream: $3470
- radio: $59
- ringtone: $30
The details show that both streaming music services and radio have seen a massive growth. Streaming services tripled percentage wise while radio services increased with a factor 14. In concrete revenue - or volume as you wish - you'll notice though that it's especially streaming services that are taking off big time. Whereas last year they only generated $3470 in revenue for June, this year that amount was already $10,350. That means hundreds of thousands of streams, actually millions: 32.300.000 to be precise.
When we dug some further in the revenue details we got to look at, we saw that Spotify accounts for 40% of the total volume in streaming. Last year that was only 29%. Which means that Spotify is not only growing fast but is also busy taking the major part in the music streaming business and that whilst only being active in 8 countries.
We also checked if iTunes lost share during this period. While in June 2010 it was good for 66% of total digital revenue share, in June 2011 it fell back to 63% but still increasing it's total revenue with 9%. The loss in total share surely is more than compensated by the increase in revenue in streaming music. Another sign that streaming didn't really take a bite out of the revenue share is that certain countries start having a much larger share in revenue generation than before. And behold, the countries involved are Finland, France, the Netherlands, Norway, Spain, Sweden and the United Kingdom. Exactly the countries where Spotify is active (the US revenue as far as digital revenue via Spotify is not yet known).
We also checked how the revenue from these countries was created. With the exception of the UK, which has a mature download market, the other 'spotified' countries mainly generated their revenue via streaming, with Spotify being the absolute leader there reaching 90% of market share.
In other words, all seems to indicate that streaming is not cannibalizing the iTunes download market all that much. Instead, it is generating extra income from countries that before didn't generate all that much as far as digital and physical CD sales is concerned.
The arrival of Spotify on the US market, where iTunes is both King and Queen will be an interesting test-case to see if Spotify is going to have a different impact. Considering that the UK download market (with both iTunes and Spotify being active) is increasing with 25% since last year, it's to be believed that both models will only push the revenue even higher.
Good news for industrial labels which have seen their CD sales drop with almost 30% since last year. Note that the drop in CD sales is far from being covered by digital sales so far, this was confirmed to us by every label we talked to. Note also that artists often get a higher percentage on digital sales leaving less financial room for promotional activities.
And as an appetizer, here are the top 15 countries as far as digital sales goes for industrial music:
- United States
- United Kingdom
Posted by B. Van Isacker
More related news :
#366: A Life Lived release 'Demo 2013' demo
#366: A Life Lived release EP in October, new video 'Exit Saved' out now
'Electro Tribute To Oasis' released on Eternal Sunday Records
'Face The Beat Vol. 1' available now... for free !
'Gangnam Style' parody 'Whitby Gothic Style' goes over 230.000 views on YouTube
'Human Centipede' sequel barred from UK distribution for being 'too obscene'
'I Dream of Wires: Hardcore Edition' to hit stores on DVD and Blu-ray in early December
'Label Noir Vol.1' compiles cult acts from eighties
'Melancholia' album teaser for September Mourning
'Old School Electrology Volume I' massive 4CD set ready for pre-order
Slipknot drummer Joey Jordison has left the band so the band informs on its website. The reason for quitting the word are personal so the statement says. (...)
New Johnny Cash album 'Out Among the Stars' will be released in March holding 'lost' material from 1980s
There is no better business than releasing albums from dead musicians. Out on March 25th 2014 is the new Johnny Cash album 'Out Among the Stars' holding 12 tracks which Cash recorded between 1981 and 1984 with producer Billy Sherill. (...)
In September we announced that Morten Harket (A-ha) was to join the Night of the Proms Tour. 2 videos have now popped up where Harket brings the brand new song 'Did I leave you behind' from his new upcoming album and the track 'Foot of the mountain' from the A-ha's last studio album, also titled 'Foot of the mountain', from 2009. (...)
After 17 years strong, hundreds of bands, and over a decade at the same location, Das Bunker is closing the doors to it's weekly dance event for good. (...)
Out now is the 'I flee' single by Növö (aka veteran electronic artist Laurent Boudic), a teaser for the project's 4th full length album, 'Zeitgeist'. (...)
To mark their 30th anniversary, ZTT/Salvo Music are set to release 3 news albums for 2014. (...)
Alfa Matrix launches 2nd volume massive FREE download compilation 'Matrix Downloaded' + offers 50% discount code on label catalogue on Bandcamp for a limited time only
SUBSCRIBE TO OUR DAILY NEWSLETTER