Skip to main content

Global Digital Music Revenues will Reach $13.9B by 2019

Across a variety of formats, digital music is undoubtedly the most mature segment of mobile entertainment. Mobile devices are uniquely positioned to become a key platform in the music industry, given their ubiquity, connectivity and continual presence with the end-user.

That being said, the music industry itself continues to be plagued with difficulties, particularly as far as recorded music is concerned. Juniper Research found that the digital music industry will experience slow growth in revenue over the next 5 years, growing from $12.3 billion this year to $13.9 billion in 2019.

The latest global market study also found that a strong performance in the robust streamed music sector will largely be offset by decline in revenues from legacy services -- such as mobile ringtones and ringback tones.

Streaming Music in the Mobile Cloud 

According to the market study findings, the worldwide digital music market will be characterized by consumer migration to cloud based services.

Juniper observed that offerings from pure-play music providers -- such as Spotify and Pandora -- will increasingly find themselves competing with personalized services from the leading OTT (over-the-top) players, including Apple and Google.


However, the report cautioned that piracy was still responsible for major revenue leakage, particularly in emerging markets, such as China, where only a small percentage of content is legally acquired.

Nevertheless, it pointed to instances where the industry had successfully reined in such activity, such as the government policy in Singapore that allows for the blocking of sites that contain infringed content.

Why Music Discovery Remains a Challenge

Looking to the future, Juniper argues that music consumption is likely to become a highly sociable activity -- with features such as music discovery and social media integration that connects music fans online.

However, finding ways to expand the pool of their subscribers and increase the ease of discovery remains a key challenge for all streaming music service providers.

Moreover, Juniper believes that smartphones and tablets will be the main platforms of growth, although digital music revenues on PCs will remain robust over the forecast period.

Additionally, emerging markets are expected to strengthen in terms of digital music consumption, as disposable income levels continue to rise and streaming music services expand into these regions.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch