Streaming saved the music stars.
Digital music outpaced physical sales for the first time ever last year as the industry’s revenues grew for the first time in 20 years, according to a report released by the International Federation of the Phonographic Industry (IFPI).
Music streaming sites, such as Apple Music and Spotify, are close to becoming customers’ preferred digital revenue source, accounting for 43% of digital music revenue and generates $2.9 billion in revenue in 2015, the report said.
“They reflect an industry that has adapted to the digital age and emerged stronger and smarter,” IFPI chief executive Frances Moore said of the change in music preferences in a statement.
In February, the trade group named Adele as its artist of the year after recent album, “25,” surpassed 8 million copies in sales.
The report noted however that 900 million users are turning to free streaming sites, like YouTube, to hear their tunes and as a result the industry looses hundreds of millions of dollars in revenue.