Online Music revenues expected to reach $6.3 billion this year
Consumer spending for online music worldwide is estimated to reach U.S. $6.3 billion in 2011, up from $5.9 billion in 2010, according to a recent report from Gartner.
That number is forecast to reach $6.8 billion in 2012, and grow to $7.7 billion in 2015. While the numbers are positive, Gartner says the growth in online spending for music will not offset the declines in consumer spending on physical music (CDs and LPs).
Revenues from physical music are expected to fall from approximately $15 billion in 2010 to about $10 billion in 2015. If the predictions are accurate, revenues from the sale of physical media will still be 33% higher than online by 2015.
Gartner says digital downloads and streaming music services, typically referred to as subscription services, will account for most of the growth in online music spending in coming years. Gartner estimates that subscription services will account for nearly one-third (29 percent) of end-user online music spending in 2015. Subscription service revenues are expected to be about $530 million in 2011, increasing to about $2.2 billion by 2015.
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