Ad-Supported Streaming Revenue Falls Despite Streams Increasing 101% in 2015

The music industry is starting to turn the corner with streaming but there is still some kinks that need to be worked out with the new sector of the industry. In 2015, ad-supported streaming revenue fell 3%, despite the number of streams increasing 101%. No, that’s not a typo. The number of ad-supported streams DOUBLED but revenue from those streams dropped 3%.

ad support streaming revenue falls

To even further prove the point as to why ad-supported streaming needs to be worked out: 17 million vinyl records were sold in the United States last year and those sales generated $416 million. Ad-supported streams only generated $386 million despite generating billions of streams in 2015. That is just flat out not right. Technology companies are playing around loopholes to avoid paying artists and even the money that is getting paid to record companies for the artists are not getting properly paid.

vinyl vs ad supported streaming

In 2016, the music industry is a digital business. The music industry has already fully gone through a transitional phase from their old business model – something the book and film industry is still trying to fight against. The music industry looks to be on the way up, but that can be stagnant if they are unable to figure out how to make ad-supported streaming viable for everybody involved, but specifically for the artists.

Go out there and support your favorite artists – or at the very least, sign up for a streaming service like Apple Music, Spotify, or TIDAL.

(Charts by RIAA)

Ad-Supported streaming revenue falls despite streams increasing 101% in 2015

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