In 2013, digital downloads decreased for the first time ever, and now it seems like last year has established a troubling pattern for the music industry as 2014 is looking no different. In the first three weeks of the new year, digital downloads and album sales are down over 10 percent, according to Billboard.
Individual track downloads are down 11.9 percent while album sales have decreased 13.3 percent. Those are startling numbers compared to last year, when digital single and album sales increased through the first quarter. However, by the end of 2013, digital music sales had dropped by over 5 percent for the first time in music history.
If this year's sales patterns echo last year's (and there's no reason why they wouldn't), the music industry could be in for a huge sales shock.
It doesn't take a genius to figure out that streaming services such as Pandora, Spotify, Rdio and the new Beats Music are massively affecting digital sales. Beats Music launched to such massive success that the new service has to delay allowing new users to register until it fixes bugs within the system.
Rdio and Spotify have both expanded their services in recent months Spotify has expanded its free tier to mobile catalogue beyond its radio service and Rdio recently allowed for unlimited streaming for free users, with advertisements, of course.
And last year, streaming consumption nearly doubled, showing even further that this is the new preferred way to consume music.
Seems like once again, record labels and artists will have to shake up how they aim to profit off new music.
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