Music sales decrease 4.9% as online listening changes

The latest music sales report indicates that, at least so far, the growth in online streaming services such as Spotify and Pandora isn't generating enough revenue for artists and record companies to offset dropping sales of CDs and downloads.

According to the Recording Industry Association of America, which collects sales numbers from the major record companies, just under $3.2 billion in music sales were recorded in the first half of 2014. That is down 4.9 percent from the same period in 2013, the association reported Thursday.

In the first six months of 2014, downloads and streaming together amounted to $2.2 billion -- virtually unchanged from the same period last year. But within that total, the proportions changed. Last year, downloads were about 69 percent of this category, by revenue, with the rest made up by streaming; this year, downloads were only 60 percent.

Digital sales of all kinds now make up about 68 percent of total sales revenue for the recorded music industry. Streaming outlets, which include "on-demand" services like Spotify, Rhapsody and Google Play Music All Access; Internet radio like Pandora and iHeartRadio; and even video services that use music, are now 27 percent of the whole. According to the report, 7.8 million people in the United States paid for subscriptions to digital services (up from 6.1 million at the end of last year).

The drop in download sales has been a major worry in the music business. In 2013, they dropped precipitously, leading to questions about whether streaming services -- which let people listen to millions of songs online, charging listeners for the access or making them listen to ads -- were to blame.

SundayMonday Business on 09/28/2014

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