Maybe the music industry isn't doomed after all, as research points to on-demand services like Spotify and We7 generating up to £696m for the global music industry this year alone, which is a complete rise of 40 per cent.
It also means that streaming music is the fastest-growing sector in the industry with Spotify leading the charge, completely overtaking downloads and leaving them in the dust, which are only set to see a 8.5 per cent increase this year.
Still, physical formats like CDs and vinyl still dominate sales accounting for 61 per cent of all music sold. Despite that figure, sales of physical media has still dropped by 12 per cent globally, and 30 per cent in the UK, which points to many people switching over to services like Spotify.
Industry watcher Strategy Analytics reckon that spending on digital music will overtake that of physical media by 2015, both in the UK and across the world. Despite the increase in streaming revenue, some musicians have complained about royalty fees, stating that they do not see a huge return, with each stream of a song earning a paltry 0.2 pence. However, Spotify says that it has dished out more than $180m in royalties to musicans last year, and is on track to double that figure this year.
Many people are switching over to Spotify due to the ease-of-use that it supplies and that modern internet connections can support the platform without any major problems. Do any of you use Spotify, download digitally or still stick to physical media? Sound off in the comments and let us know your thoughts. [BBC]