In the News
Downloads from the great Jukebox in the sky
PwC have recently released a report analysing the trends emerging in the Entertainment and Media industry with a particular focus on shifts in advertising and consumer spending. TheSegment Findings page highlights key features for a range of segments in the industry, but one area which could be very useful for students focuses on music, and the consumer shift from buying and owning recorded' music, to subscription-based music rental services, or streaming. As the graph below shows, the CAGR (compound annual growth rate) of revenue from streaming is set to grow at much the same rate as the revenue from sales of physical recorded music declines:
Analysis in this excellent report shows that music distributers such as Universal Music, Sony Music and Warner Music are reaping the benefits as they collect royalties each time a subscriber streams songs. And that the shift is not confined to music, but is also showing in subscription video services like Netflix and Amazon Prime as they are set to overtake revenue from sales of DVD and Blu-Ray. This throws industries like newspapers and advertising into decline - particularly a threat to the advertising industry as consumers can opt to pay extra to avoid advertising in downloaded media.