IFPI 2015 Year End Report Analysis
Room for improvement
While current situation already let us expect truly positive forecasts, there is still various limitations today. The main dark point today is the failure of proper monetization of ad-supported streaming:
- 68 million paid subscribers generated $2 billion, $29 per user
- 900 million ad-supported users generated $634 million, $0,7 per user
If the need of better monetization is obvious, especially from music video streaming giant Youtube, the dark point of today can be regarded as a green light for the future. A setting of more favorable legislations to the music industry that are being negotiated, would be an immensely large room for improvement.
The continuous increase of smartphones and 4G penetration will also push higher the potential number of users. Those two elements are especially true in Asia and Latin America. Thus, the strong increases on those two areas are one more element to be confident in the future as it is only getting started there. During the long story of physical sales those markets have never been exploited at the level of their populations, with streaming they will be able to turn into a major force in upcoming years.