The 2024 Luminate Midyear Music Report indicates a substantial increase of 15.1% in global on-demand audio streaming from 2023 to 2024. The growth trend in audio consumption suggests more users are turning to streaming platforms for their music needs.
This increase correlates with the rising popularity of platforms like TikTok, Spotify, and Apple Music, which explains why artists, record labels, and marketers continue to focus on digital strategies to engage audiences.
In the United States, on-demand streaming recorded an 8.0% increase year-over-year, which shows the continuing trend as the primary method of music consumption.
Streaming growth has revolutionized the music industry, and investors in platforms like Royalty Exchange can significantly benefit from this trend.
For example, this catalog features tracks from British singer Fred Again.., and electronic music artists Billie Ray Martin and Anne Clark is currently listed for $290,000.
In the last five-year earnings, Streaming Mechanical has shown the highest CAGR among income types with 66% and has consistently grown its share of overall earnings, indicating a growing consumer preference for streaming services. The last 12 months earnings for this specific catalog up for auction is 39.9% greater than the 3 year average showing remarkable growth thanks to increased streaming consumption and the catastrophic and continued rise of Fred Again... The UK producer and DJ has been performing in stadiums and headlining festivals around the world in recent months and is a top 500 most listened to artist on Spotify right now. The main song in this catalog, released in 2021 just saw its highest streamed month in July, 2024 with 47% more streams last month than July of 2023.
Streaming Mechanical earned only $1,278 four years ago, and then grew to $9,604 this year.
Streaming Platforms
The report also discovered that consumers at risk of leaving (churn) place a high value on exclusive content from artists. This suggests that access to unique content like unreleased tracks, behind-the-scenes footage, or artist interviews can be a major factor in retaining subscribers.
Streaming platforms offering content beyond music, such as podcasts, videos, and other multimedia, are attractive to users. More consumers seek holistic entertainment experience within a single platform.
As premium streaming counts rise compared to ad-supported streaming, fewer streams are needed to equal an album sale, which highlights the growing dominance of premium subscriptions in the industry.
It’s expected that more music services and artists will prioritize strategies that increase paid subscriptions.
In this regard, the majority of streaming consumption comes from premium audio services, highlighting the importance of paid subscriptions in the music industry. Ad-supported video streaming also constitutes a considerable portion of the market to indicate that free services still play a crucial role in reaching a wider audience.
This Royalty Exchange catalog that features nine tracks from Rihanna, Future, Luh Kel and more saw a huge uptick in streaming growth recently.
Five years ago, its streaming earnings only amounted to $3,938. This grew to $8,124 this year.
The catalog was first sold in November 2023 for $61,000. It was then sold for $96,700 six months after. The first buyer collected $5,490 in royalties over the course of just half a year and made a total ROI of 53.3%! Now, it’s back in the market, still growing in earnings and you could be the next to invest in this lucrative asset listing.
K-Pop
Another interesting data is how K-Pop leads with the highest percentage of early listeners, reflecting its fanbase's enthusiasm and immediate engagement with new releases.
This shows artists and music companies will capitalize more on early release excitement with pre-release marketing, countdowns, and exclusive content to boost engagement.
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