A recent report published by the Recording Industry Association of Amerca (RIAA) concluded that the music industry has done a great business in 2018. According to a number of other reports released during the start of 2019, the main players who resulted in an extremely well growth are Apple’s Music and Spotify. New customers are signing up daily on these platforms by the thousands. This news has had a positive impact on Apple stock prices.
The RIAA had recently announced that its report on revenues in 2018 has been released. In the twitter post, the RIAA mentioned that 3 quarters of all the music industry’s revenue in 2018 was generated by streaming music. The also told that 55% of the total business done in the music industry was the result of paid subscriptions.
According to the report on music revenues in 2018 by the RIAA, the recorded music industry in the United States made $9.8 billion in 2018. This number is 11.9 percent higher than 2017’s standings. This also shows that out of the $9.8 billion, $7.4 billion was generated by streaming music services. Based on the report, Apple Music and Spotify were the leading services in the arena.
The RIAA has done a pretty detailed rundown of the statistics of the music industry’s output in 2018. This allows us to get a good look at what is making this arena so successful and lucrative. The report has also helped the prices of stocks of music companies rise. Apple stock have also risen since the report was released.
The RIAA showed that out of the $7.4 billion earned in the streaming music services side, $5.4 billion came from paid subscriptions. The number is a whopping 32 percent higher than the result of 2017. The remaining $2 billion came from free services that earn through advertisement networks and affiliations.
The whole news has been a good sign for Apple as the company is currently struggling to compensate for the diminishing demand of iPhone. Apple’s strategy is to push Apple Music to the front until the iPhone finds its former glory in a few regions of the world. Unfortunately, the success of Apple Music is causing another service by the same company to produce diminishing returns
Apple iTunes is still the most popular way of downloading music and isn’t rivaled by any other digital music vendor in the industry. However, for the first time in many years, music CDs and records (physical form) have outsold digital song downloads. The entire digital downloads arena made just over $1 billion last year. According to the report by the RIAA, physical music sales took 12 percent of the total revenue generated by the music industry while the digital song vendors managed to generate just 11 percent.
The iTunes service isn’t in any imminent danger either. Contrary to what many people had been predicting, Apple’s iTunes is currently doing very well. The service has over 50 million subscribers now and combined with the output of Apple Music, it is actually helping the company absorb big hits. Surprisingly, Apple stock is holding strong even after iPhone’s downfall in China.