• Nielsen Data Shows Digital Album Sales Down 12% while Music Streaming Up 50%

    Recent data from Nielsen shows that sales of digital albums are down 11.6% while purchases of individual tracks are down 13%, all while on-demand streaming audio has surged 50.1%, helping to provide some insight into why Apple purchased Beats Music. For those of you who didn’t know, Nielsen SoundScan measures music sales while Nielsen BDS tracks music streams. Both recently revealed that overall album sales including physical and digital media, are down 14.9% in the first six months of 2014 with digital album sales being down 11.6%.

    Although sales of albums through services like iTunes have declined, users have embraced streaming services. Total on-demand media is up 42%, with audio accounting for the most, 50.1%. Video on-demand was up 35.2% in the first six months of the year. There is one segment of the physical media market that is growing, however, as sales of vinyl increased 40.4% to 4 million units. That was up from 2.9 million units sold in the first six months of 2013.
    The latest data showing the growth of streaming audio comes shortly after Apple paid $500 million for Beats Music, an on-demand subscription service which was started by the headphone maker, Beats. Apple ended up paying another $2.5 billion for the company’s headphone division in an acquisition that included Jimmy Iovine and Dr. Dre as employees.

    The Cupertino California company made it clear that the acquisition of Beats Music was key to its blockbuster $3 billion deal as the company intends for it to complement its existing iTunes offerings. The Cupertino California company already offers its own iTunes Radio service, but that relies on a series of randomized “stations” rather than allowing users to select their own tracks on demand. Apple mentioned that it plans to keep the subscription Beats Music service intact, alongside the existing iTunes Radio free streaming and song purchasing through the iTunes Store. The company emphasized that the deal will make its music lineup “even better,” in the words of iTunes and online services chief, Eddy Cue.

    Source: Nielsen via AppleInsider
    This article was originally published in forum thread: Nielsen Data Shows Digital Album Sales Down 12% while Music Streaming Up 50% started by Akshay Masand View original post
    Comments 2 Comments
    1. StuG III's Avatar
      StuG III -
      Is music streaming on the rise because it is being shoved down people's throats? There are a million of those services and they are all trying to get the consumers attention.
    1. swifty7's Avatar
      swifty7 -
      all I got to say is that I love music streaming. Having access to millions of songs anywhere is the future. I don't understand why couldn't Apple provide their entire itunes library for a subscription plan like Spotify instead of spending all that money buying Beats.
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