Online Marketing Trends

UK’s digital media revenues currently comes from  digital gaming and digital video, Together they both make up 70% digital revenues .Next comes digital music and e-publishing 

digital gaming and streaming video among biggest  online media revenue contributor in UK
UK digital media revenue is a across 4 verticals . 1) online gaming 2)digital music 3) digital video 4)digital publishing in the “Digital Media” UK’s total digital media revenue amounts to 5,460.4 in 2015 million USD in 2014, which is expected to grow to 54billion USD ( 5460 million)

Online gaming forms the biggest pie of UK’s digital revenue with a market volume of USD 2,628.2 million USD ( 26billion USD) in 2015. Next is digital video streaming, followed by epublishing  and digital music

the list of music discovert start ups


Music Discovery, Recommendation and Creation start ups:Every year, at conferences like Midem and Berlin Music Week, latest music start ups and music discovery engines make their debut as latest start ups as the digital music newcomers Here are the most promising  top 5 music digital music startups

1.)Audioshot (USA) An iPhone app that gets people to send songs to friends via other messaging apps: Snapchat, Instagram, Facebook Messenger and WhatsApp for example.

2.Fusic (Israel) An iOS and Android app that “takes the selfie to the next step” according to its app store listing. That means getting people to film videos of themselves singing, lip-syncing or dancing to their favourite songs, with that footage then being integrated with the song’s original video, for sharing.

3.)Mixcloud ( London) founded in 2008, positions itself as the “home for on-demand radio shows, DJ mixes and podcasts”. The service, which counts about 10 million monthly users, recently introduced subscription plans in an attempt to  monetize itself

 4.)Deezer ( France )Music streaming service Deezer, founded in 2006, is live in more than 180 countries around the word. The company is backed by approximately $150 million in financing. Deezer claims to have 16 million active users and 5 million paid subscribers.

5)SoundDrop (Norway)Founded in 2011, Soundrop offers a social music discovery app as well as marketing tools for artists and labels to promote their music. The startup has about $6.4 million in funding to date . It has offices across Oslo, New York, Los Angeles and London.

CEO and Co-Founder of Spotify Daniel Ek became a multimillionaire at age 23 when he sold an online advertising company in his native Sweden in 2006.

Not many know that it was a rejection  from Google which made ” Daniel what he has achieved today As a 16 year old he was turned away when he applied for a job at Google. This, daniel says was a start of a journey and a turning point  ” when he undertook a resolution’ of not letting age interfere with his knowledge and subsequently gave birth to an idea, which he has since never looked back 

The idea behind Spotify was ” the opportunity” it gave to  the sputtering music industry to create an alternative to music-piracy services such as Napster. Spotify gives a cut of the revenue to record labels and music publishers, which in turn pay out their artists and songwriters at varying rates.

The major labels – Vivendi SA’s Universal Music Group, Sony Corp.’s Sony Music Entertainment and Access Industries’ Warner Music Group – also own about 15%of the company, collectively. Spotify reported in November that its 2013 revenue was €747 million ($842 million) and it lost €57.8 million ($65 million).

 Spotify revenue model is based on a bait that ” offers a limited, free version of its service”, hoping users will eventually subscribe. The company counts 15 million subscribers to its $9.99 premium plan, and about 45 million active users of its free, ad-supported version – by far the biggest global user base of any subscription music offering

List of  VC  Funding and Equity Investments in Spotify; As of 2015 137 VC funding firms have a stake in the company

This chart from statista shows the the income across the UK music industry from 2003 to 2013. Among the formats which in included in the final sales figure include physical, online, mobile and streaming revenue channels. In 2003, industry revenues from UK music industry amounted to 1.2 billion British pounds. This value fell annually, except in 2009 and 2013.

Income from ad supported music streaming websites in UK from 2008 to 2013 (in million GBP)  online ad-supported revenues  across music streaming in the United Kingdom amounted to  19million GBP in 2013 as compared with 14.5 GBP in 2012 . In 2010 online ad supported revenue was 10.8million GBP

US Music Industry Revenues exceed Physical CD sales by 28% US music industry revenues has crossed “physical music sales . Streaming and Digital subscription  revenues grew by almost 29%  reach roughly $1.87 billion, surpassing sales of CDs ($1.85 billion) according to a report from the RIAA.  Digital permanent downloads reached $2.9billion as compared to $2.6billion in 2014 , a growth of  10%. physical CD sales grew by only 7% to reach 2.2 billion  while  digital subscription  and streaming revenues grew 29%  to reach $1.8billion , a growth of 39%

Music streaming companies now account for 70 percent of all music bought in Sweden, home of Spotify, the world leader in the field, official industry figures revealed on Sunday. The Swedish Recording Industry Association (GLF) said physical sales of music now stood at just 25 percent, confirming the march of digital music in the pioneering country. The remaining five percent of consumers downloaded music to own on a hard drive. GLF said the percentage of streamed music, where songs are downloaded but not kept permanently on computers, had risen from 57 percent in 2012. Sales of music overall grew by 12 percent in the first half of this year and have been increasing steadily since 2008, while not reaching the heights seen at the beginning of the last decade.

You will find more statistics at Statista

a new entry level iPod Touch early Thursday, and also quietly confirmed that they’ve sold 100 millon of the portable media devices since launching the line in 2007.

source:ultrahighendreview.com Within the United States, the total digital music revenue rose 17.3 percent to $2.62 billion

Globally, music revenues fell by 3 percent to $16.6 billion, according to Billboard data

The Recording Industry Association of America just released its 2011 sales figures yesterday (PDF here), and there was a surprising bit of good news in them.

The Total U.S. music sales actually grew for the first time since 2004. They were up 0.2%, just topping $7 billion.
The reason: digital sales were up 9.2% during the year, and physical sales (mostly CDs) dropped only 7.7%, which is smaller than in recent years.

• Subscription service revenue is growing. The take from services like Spotify and Rhapsody was up almost 14% to $241 million. Total subscribers grew from 1.5 million to 1.8 million.

• Album downloads are growing like crazy — unit sales (105 million) and revenue ($1 billion) were both up over 20%.

• CDs are still the biggest seller by far, with more than 240 million sold for more than $3.1 billion.

• People spent more than $100 million on vinyl records last year. Unit sales and revenues were both up over 30%.

The total number of apps downloaded (excluding updates) overtook songs in June/July and continues on its trajectory. In fact, the rate of downloads for Apps is now over 1 billion / month. Given the data points above, I calculate it to be about 34 million per day. The corresponding rate for songs is 8.3 million per day.( source )

After paying the content owners, iTunes is left with about $75 million per month from apps and $85 million per month from songs. At a billion downloads a month (and rising) the value in terms of revenues is already a run rate of $2.9 billion per year. This has been enough to overtake a business that has been running for more than seven years. ( source  )