How might the streaming music landscape look in a few years? A Forbes article by Bobby Owsinski predicts the behemoth tech companies, Apple, Amazon and Google, will be overwhelming leaders. Financially it may be difficult for companies that only do streaming music (like Beats Music and Spotify) to compete because they only have one source of revenue.
Billboard reports Apple has reached-out to music label executives about potentially launching an on-demand music streaming service of their own. Declining revenue of digital downloads from their iTunes Music Store is cited as the reason for the talks.
It appears streaming music will be a growing part of how we consumers get our music. According to the recent Digital Music Report from IFPI, 39% of worldwide music revenue comes from digital (against 51% from physical product). Of that 39%, a growing 27% comes from subscription and ad-supported streaming services, up 14% since 2011. With 28 million streaming subscribers worldwide today, growth potential is imminent.
Another number to keep in mind, revenues from music subscription services grew by 51% in 2013.