Music Downloads on the Decline Thanks to Streaming Services
October 22, 2013
Music downloads are on the decline, and many music executives agree that streaming services like Pandora and Spotify are likely a major cause. So far, 2013 has seen 1.01 billion track downloads in the U.S. — four percent less than this time last year. Album downloads are up two percent, however, bringing the total downfall to one percent. Streaming services, meanwhile, have seen a revenue increase of 59 percent since last year.
The dip in music sales is a familiar echo of when CD sales began losing out to downloads. Now, the concept of consumers “borrowing” music from services such as Spotify — or “renting” it if they opt for paid subscriptions — is becoming more appealing to music lovers.
Though some analysts disagree about the exact cause of a decline in download sales, the growth in popularity of music streaming undeniably makes music accessible more cheaply, allowing consumers to discover new music based on their tastes (Pandora) and look up a specific album and even download it to listen offline later (Spotify).
But many argue these services often lead to individual music purchases later, and that the increased revenue from streaming “may finally help turn the overall industry toward positive results,” reports The New York Times.
Apple’s recent introduction of iTunes Radio — a service similar to Pandora — is a major indicator that music streaming is becoming the new industry standard.
“Some experts also point to the rise of Android devices as a possible factor in the drop in downloads,” notes NYT. “While phones using Google’s operating system now represent a majority of sales, Google’s Play store remains eclipsed by iTunes, by far the dominant music retailer. Some research also suggests that Android users may spend less money on music than Apple customers.”
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