According to new information presented in a report from Gartner (“Media IAS Online Music Forecast, 2011-2015: Social Media, Subscriptions and the Cloud“), worldwide online music revenue from end-user spending is on pace to total $6.3 billion in 2011.
That’s up from $5.9 billion in 2010.
Despite the runaway growth in digital music consumption, Gartner predicts that online music revenue will reach $6.8 billion in 2012, and grow to $7.7 billion in 2015.
Needless to say, however, where there’s a winner, there’s also usually a loser. And in this case, the loser is physically-packaged music, like CDs.
Consumer spending on CDs and LPs is expected to slide from approximately $15 billion in 2010 to about $10 billion in 2015, Gartner estimates.
“As consumers opt for connected devices – media tablets, smartphones and connected media players – across world regions, their desire for access to and consumption of music and content is growing as well,” says Mike McGuire, research vice president at Gartner. “Music labels, artists, publishers and new distribution intermediaries are developing new business models to address consumers’ changing behavior.”
“The music industry was the first media sector to feel the full impact of two major forces – the Internet and technology-empowered consumers,” He adds. “It has staggered through the first decade of the 21st century, and entered the second bedraggled financially and facing a powerful set of intermediaries, which are creating borderless global ecosystems that defy the industry’s previous notions of control and monetization. The primary stakeholders in the music industry are facing wrenching changes and a somewhat uncertain future. However, the next four to five years portend solid growth ”
Source: Mobile Marketing Watch