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according to the IFPI, # of paid subscribers subscription music worldwide

 

2010: 8.2 mil

2011: 13.4 mil

2012: 20 mil

 

 

The biggest music subscription service in the world by paying subscribers:

 

Spotify: 5 mil +

Deezer: 3 mil +

Melon: 3 mil +

Mnet: ?

Muve Music: 1.5 mil

Rhapsody: 1.0 mil +

Bugs: ?

Soribada: ?

 

Other players are Sony Music Unlimited, XBox Music, Rdio, MOG, and countless others.

 

 

 

 

 

At the rate that it is growing, subscription music could overtake Itunes in about 2 years.

 

according to IFPI, # of paid subscribers subscription music worldwide

 

2010: 8.2 mil (actual)

2011: 13.4 mil (actual)

2012: 20 mil (actual)

 

2013: 27 mil (prediction)

2014: 35 mil (prediction)

 

revenue from 35 million paying subscribers worldwide would be enough to surpass Itunes music revenue worldwide. It's no wonder that Google and Apple is trying to get into the game. Amazon won't be too far behind.

 

http://www.billboard.com/biz/articles/1550...iption-services

 

Warner Music Inks Deal With Google for Music Subscription Services

 

Google is also in deep negotiations with Universal Music Group, Sony Music Entertainment and other labels to nail down an agreement similar to the one it now has with Warner.

 

 

Google’s efforts to build an on-demand music service was first reported in February by the Financial Times. Fortune followed up with a report that detailed Google’s plans for two separate music services.

 

Google will be jumping into a fiercely fought market for on-demand music streaming. Spotify, Rhapsody, Muve Music, Slacker, Samsung Music Hub, Sony Music Unlimited and Rdio are among the current players slugging it out for dominance. And later this summer, Beats Electronics will re-launch a revamped MOG service, branded as Beats Music.

 

Google, however, will be coming to the party with several formidable advantages – YouTube and Android.

 

Its YouTube platform attracts 800 million unique viewers a month. That’s vastly more than the tens of millions of people worldwide who are estimated to be using on-demand streaming music services -- both free and paid. In addition, Google’s Android operating system powered 68.4% of all smartphones shipped globally in 2012, compared with 19.4% for Apple’s iOS, according to Strategy Analytics.

 

 

Right now, subscription music mostly relies on word of mouth. When Google/Apple launch their own, there will be a big marketing push for it (in order to gain market share). It will only make subscription music more popular.

 

 

Both Itunes/AmazonMP3 pays 70% to the right holders.

Subscription music also pay 70% to the right holders (per Spotify).

 

 

 

As for royalties,

 

http://www.digitalmusicnews.com/permalink/2012/120604youtube

 

I Run an Indie Label. And Here's What Spotify, Rhapsody & Zune Are Paying Us...

 

Zune

15,159 plays

Payout = $437.58

$0.028 per song

Ratio = 25:1 iTunes Song Download

 

Napster

30,238 plays

Payout = $479.07

$0.016 per song

Ratio = 43:1 iTunes song download.

 

Rhapsody

50,822 plays

Payout = $668.57

$0.013 per song

Ratio = 53:1 iTunes song download.

 

Spotify

798,783 plays.

Payout = $4,277.39

$0.005 per song.

Ratio = 140:1 iTunes Song Download

 

 

 

Spotify has both free and paid streaming. Zune/Napster/Rhapsody are all paid streaming, that's why their payout per stream is higher.

Edited by Dust2

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Could you please have just one topic for your spotify posts? I am closing this so you can repost it in one thread.
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