We speak, of course, of digital media transformation.
The Recording Industry Association of America now says 34% of its revenue come from digital downloads, with 34.3% from streaming. Physical sales -- CDs, and vinyl -- are now at 28.8% share.
CD sales -- which once comprised $9.4 billion in revenue in 2006 -- are now just at $1.5 billion. One silver lining in the physical arena: Vinyl sales, making somewhat of a comeback, are up 32%, to $416 million,their highest level since 1988.
Comparisons to TV may be an apples to oranges situation -- because of the advertising component. But it should be noted, music revenues from on-demand streaming ad-supported services were up 31%, to $385.1 million.
Overall the music business is further along than TV when it comes to the shift to digital.
Total streaming revenues for music grew 29%, to $2.4 billion, with downloads at $2.3 billion. That means a total of $4.8 billion revenues -- nearly 70% of the music industry’s $7.0 billion -- come from digital sources.
TV’s yearly take from all advertising comes to around $70 billion, with total U.S. revenue from multichannel pay TV subscribers at more than $107 billion. But only a fraction of these businesses revenues comes from digital platforms.
TV executives believe its business can transform to more than 50% of its revenues coming from digital platforms -- from subscriber fees or advertising dollars -- in the coming years.
They point to growing money from new over-the-top (OTT) platforms, new data-based advanced advertising efforts, higher retransmission revenues for TV networks/stations, and a still-strong desire from consumers to spend on entertainment.
This is the music to their ears.