30% Still Purchase Downloads

According to Music Watch, one third of US consumers continue to purchase downloadable music, even as streaming sales rise.  Recording Industry Association of America recently released data showing that paid downloads made up for 37 percent of U.S. music revenues, while streaming only created 27 percent.

And while this trend continues, shifts have been seen in the market shares as well. As calculated by music watch “While 7 out of 10 music download buyers shopped at music download leader iTunes last year, the company also ceded market share to Amazon MP3 and Google Play” with Amazon and Google accounting for 19% and 11% respectively.

For details see the entire report at Music Watch

2014 Showed Dip in Sales

Although 2014 saw strong growth in music streaming, dips in music sales, both physical and digital led to a drop in music revenue as a whole. According to the International Federation of the Phonographic Industry’s (IFPI) annual “Digital Music Report”  global music industry sales in 2014 fell 0.4 percent to $14.97 billion, however many executives are optimistic.

According to Billboard “global digital revenues grew 6.9 percent to $6.85 billion in 2014, with revenues generated by subscription services alone climbing by 39 percent year-on-year, to total $1.57 billion. That growth was, however, offset by an 8.1 percent drop in physical sales and an 8 percent fall in download sales.“

This has been the second year of falling music sales since 2012’s 0.3 revenue increase (which had been the first year of growth since 1999.)

For the full article, see Billboard.com

Fair Play Fair Pay Act

Congress members, Jerrold Nadler and Marsha Blackburn have introduced a bill addressing various issues surrounding licensing digital music as well as requiring radio stations to pay royalties to performing artists. The bill dubbed, Fair Play Fair Pay Act, would create a new federal copyright law for “terrestrial performance right for sound recordings,” which would enforce songwriters and artists to be paid for works played on radio.

In addition, Fair Play Fair Pay Act would change how royalty rates are set for satellite and internet music providers. In a statement by Mr. Nadler, he said “The current system is antiquated and broken… It pits technologies against each other and allows certain services to get away with paying little or nothing to artists.”

While the bill has a good amount of support by many areas of the industry, not all are in favor. In a statement issued by the The Free Radio Alliance, they opposed the act stating, “The performance tax legislation introduced by Rep. Jerrold Nadler is mostly a patchwork of past proposals, which have failed to pass Congress previously. It’s ironic that the only thing the music industry seems to be able to agree upon is taking more money from others, like radio stations, for themselves.”

For more information on the Fair Play Fair Pay Act go to Billboard or The New York Times