Paid streaming music subscriptions in U.S. top 60M, says RIAA – gpgmail


Streaming music subscriptions continue to drive the U.S. music industry’s growth and revenues, according to a new report from the Recording Industry Association of America (RIAA) released this week. The organization said total music revenue grew 18% to $5.4 billion in the first half of 2019, with streaming music accounting for 80% of industry revenues. The report also noted the number of paid subscriptions topped 60 million in the U.S. for the first time.

Streaming revenues grew 26% to $4.3 billion in the first half of the year.

This broad figure includes paid versions of Spotify, Apple Music, Amazon Music, and others, as well as digital radio service revenues like those from Pandora, Sirius XM, and other internet radio, plus ad-supported streaming like YouTube, Vevo, and the ad-supported version of Spotify. Screen Shot 2019 09 06 at 3.46.43 PM

Meanwhile, paid subscription streaming is continuing to grow, too, said the RIAA. Year-over-year, paid subscriptions grew 31% to reach $3.3 billion and remain the biggest growth driver for industry revenues.

In the first half of 2019, paid subscriptions made up 62% of all U.S. industry revenues and 77% of U.S. streaming music revenues.

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The number of paid subscriptions to full on-demand streaming services grew 30% to 61.1 million in the first half of the year, at an average pace of over 1 million new subscriptions per month.

This doesn’t include the “Limited Tier” subscriptions like Pandora Plus or that Echo-only subscription to Amazon Music, for example, where various factors limit access to a full catalog across devices or restrict some on-demand features. This category saw $482 million in revenues, up 39% from the year prior.

“Thanks to that breakneck growth, plus continued modest drops in digital downloads and new physical sales, streaming now generates 80% of music business revenues and has fundamentally reshaped how fans find, share, and listen to the songs and artists they love,” wrote RIAA Chairman & CEO Mitch Glazier, about the new figures.

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Ad-supported on-demand services grew 25% year-over-year to $427 million, while digital radio service grew 5% to $552 million in the first half of 2019.

However, the gains made by streaming were somewhat offset by declines in digital downloads, as Glazier noted.

Revenues in this category fell 18% to $462 million in the first half of the year, with digital track sales down 16% year-over-year and digital album revenues down 23%. Overall, digital download only accounted for 8.6% of total industry revenues.

Screen Shot 2019 09 06 at 3.48.11 PM

Physical product revenues grew 5% to $485 million in the first half of 2019, but the RIAA attributed this to a reduction in returns.

 


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Apple Music launches a public beta on the web – gpgmail


Apple Music is coming to the web. Apple today is launching a public beta of its popular music streaming service on the web, which will be available to all Apple Music subscribers worldwide. This is the first time that Apple Music has been officially offered on the web, though an unofficial app over the past few months has gained attention after attracting hundreds of thousands of users.

Clearly, there was some pent-up demand for a web version of the service.

To use the new Apple Music web version, subscribers can visit the link beta.music.apple.com and sign in with their Apple ID.

At launch, the service includes many core features, like searching and playing songs from the Apple Music catalog, searching and playing songs from your library (if Sync Library is enabled), accessing your playlists and more.

All the main sections from the Apple Music app will also be available, including Library, Search, For You, Browse and Radio. Other features will roll out over time as the service is further developed.

During the beta testing period, Apple will be soliciting feedback from customers as it works on the product to help it streamline features and squash any bugs.

At a later date, new users will be able to sign up for Apple Music through the website. But for the time being, you’ll need to be an existing subscriber who signed up elsewhere.

The web version is now one of several ways Apple is making its music service more accessible across platforms.

The service is already available as an app for iPhone, iPad, Apple TV, Apple Watch and Mac. And at this year’s WWDC 2019 event, Apple announced its plans to dismantle iTunes on the Mac, making Music a standalone app with access to both downloads, library content and Apple Music’s streaming service.

Apple Music is also offered on non-Apple platforms, like Android, Windows, Sonos and Amazon Echo.

Cross-platform availability is essential in today’s streaming market, as Apple Music faces competition from Spotify, Pandora/SiriusXM, Amazon Music, YouTube Music and other local players.

At last count, Spotify had 108 million paying subscribers in the quarter ending in June and Apple Music topped 60 million subscribers in late June.


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Spotify expands its new Premium Duo plan to Latin America – gpgmail


Spotify’s newest paid subscription, the Premium Duo plan designed for two people, first launched this spring as a pilot test in Ireland, Colombia, Chile, Denmark, and Poland. Today, Spotify says the plan is being more broadly rolled out to 14 more Latin American markets.

The new markets include: Argentina, Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, and Uruguay.

The Duo plan is meant mainly for couples, though it could apply to roommates or any other two people who share the same home address.

In terms of pricing, it’s a step up from a single Premium subscription but more affordable than a Family Plan, as it’s limited to just two accounts. However, the Duo plan is discounted so it’s a better deal than buying two separate Premium accounts.

The benefits are similar to those on the Family Plan. Like the larger group plan, Duo keeps each user’s music preferences and recommendations separate from one another. And like the Family Plan, which recently added a custom mix composed of track everyone in the family enjoys, the Duo subscription also includes its own shared playlist, the Duo Mix. Members can easily share their playlist libraries with one another, too.

Despite now reaching 19 total markets, Spotify still refers to the Premium Duo plan as a “pilot,” which typically means the company hasn’t fully committed to bringing the service to all its users at some point. Instead, that terminology typically implies the company is continuing to evaluate the new service’s impact.

In Spotify’s case, Premium Duo’s launch in March hasn’t yet led to a massive subscription bump. When reporting its Q2 2019 earnings, the company said it added 8 million new subscribers in the quarter, which was below the estimated 8.5 million figure. It now has 232 million monthly users and 108 million paying subscribers.

That said, Duo hasn’t reached many of Spotify’s key markets where such a plan could have more of an impact to subscriber counts, including the U.S.

If you live in a supported market and already have a Premium plan you can visit your Account page on Spotify’s website to add a partner and upgrade. Both plan members will need to share the same home address.


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Pandora now lets you share music and podcasts to your Instagram Stories – gpgmail


Pandora today announced a new integration with Instagram that will allow users to share their favorite music and podcasts to their Instagram Story. The feature comes well over a year after Spotify launched a similar integration with Instagram Stories, and only days after Spotify introduced sharing to Facebook Stories, as well.

In Pandora’s case, accessing the feature is also a quick and easy process — you just tap the “Share” button from the Now Playing screen in the app, then choose “Instagram Stories” as the destination.

A cover art card for the music or podcast will then be generated on your Instagram Story, which you can further decorate with text and stickers, as usual. You can also choose to send the story as a direct message to a friend or a group chat, instead of all your followers.

Where Pandora’s experience differs from Spotify’s is what happens when that story is viewed.

When a friend taps the “Play on Pandora” button from the Instagram story, they can gain direct access to that content — even if they don’t have a Premium account. Those who aren’t paid subscribers will be able to view a short ad then gain access to both the shared content as well as a session of free, unlimited, on-demand music.

This is made possible through Pandora’s Premium Access ad solution, which rewards users for watching video ads with free, on-demand sessions.

That means Pandora’s take on Instagram sharing won’t just be useful to artists looking to promote their music, or fans looking to engage their friends — it will also potentially serve as a way to convert free users to paid subscribers after they get a free taste of what Pandora has to offer.

The feature can also be used to promote podcasts, which a newer battleground between Spotify and Pandora these days. The former has spent on acquisitions and hosts a number of exclusive shows while Pandora is now benefitting from new owner’s SiriusXM’s talk radio programming and its own “Genome” classification technology. 

Pandora says the Instagram Story sharing feature is launching today for select users, and will support sharing songs, albums, podcasts, and playlists.

It’s rolling out to a limited number of Pandora users to start, and will gradually reach the rest of the user base in the weeks ahead.


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SiriusXM undercuts rivals with a $4 per month student subscription – gpgmail


SiriusXM is making its streaming service more affordable for younger consumers with the launch of a new subscription package for college students. While SiriusXM’s Premier package is $12.99 per month, the new streaming-only student offering will be just $4 per month — a 69% discount. This comes in a dollar less than competitors’ student plans, including the $4.99 per month packages from Apple Music, Spotify, Amazon Music Unlimited, YouTube Music, and even SiriusXM-owned Pandora.

The move represents a big grab for a growing user base who prefers to subscribe to streaming music services rather than make purchases on digital marketplaces, like iTunes or Amazon.

Though the SiriusXM brand has for a long time been associated with being an upgrade option for vehicles, the service has been working to establish itself as a viable option outside the car. In April, it launched a streaming-only subscription for listeners without cars.

Today, SiriusXM streams across phones and tablets, on the web, and at home on connected devices including Amazon Alexa, Fire TV, Chromecast, Roku, Apple TV, smart TVs, Sonos speakers, Xbox, and Sony PlayStation.

Like other student packages, SiriusXM’s student plan isn’t a watered-down subscription. It offers access to SiriusXM’s full lineup of music, including its over 200 commercial-free channels, which feature both music and talk radio-style programming as well as sports, entertainment, comedy, lifestyle, news and more.

This also includes some of SiriusXM’s more recent additions, following its $3.5 billion Pandora acquisition last year, which bring Pandora -powered content to its service. For example, the companies this spring launched Pandora NOW, a station that streams on both services that used Pandora listener data to pull in the most listened-to and the fastest-trending new tracks across Pop, Hip Hop, R&B, Dance and Latin.

Plus, students will have access to the over 100 SiriusXM Xtra channels which allow you to skip through songs, the company says.

The service does not include the ability to stream to cars, however — it’s a student version of SiriusXM’s streaming-only plan.

To join the service, students will have to verify their status as a registered student by providing their university or college name upon sign-up. The verification process is handled by SheerID, which also powers verification for others in the space, like YouTube, Spotify and more.

“Today’s college students grew up listening to SiriusXM in their parent’s car, and now we have a package built just for them,” said Matt Epstein, Vice President, SiriusXM Outside the Car, in a statement. “Our Student Premier Package enables students to have their own subscription and continue to enjoy the SiriusXM programming they love in their dorm room, at home or on the go,” he said.

 

 


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