Digital_MediaTV & Media

TV & Media

Deezer and YouTube Launches Set to Intensify US Music Streaming Battle

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Report Summary:

The recorded music market in the US has remained in the doldrums for some years now with digital spending struggling to compensate for long term declines in packaged sales since 2007. The first stage occurred during the transition from physical1 music spending to retail downloads driven by the success of iTunes. As a result the share of music spending on physical sales dropped from 85 per cent of US music spending in 2007 to 37 per cent in 2013. Now we are seeing a second stage of decline caused by a shift in spending from retail downloads to subscription-based streaming. The growth of streaming music services suggests that the audience is shifting towards accessibility and availability over actual ownership of digital music, and in the short term this has shrunk US music spending. The question for the industry is whether spending on streaming will grow to compensate both for declines in physical spend which will never rebound and flatlining retail download spending.

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