“The digital music industry has convinced itself that the tiny proportion of people who currently listen to music on streaming services are the people who will shape the future of it. No industry works like that! No industry is shaped in the way early adopters adopt it.”
7digital chief executive Simon Cole has a bone to pick with £9.99-a-month streaming subscriptions – or, at least, with what he perceives as the music industry placing so much emphasis on that model, it may be missing opportunities elsewhere.
“8% of music consumed in the home is from streaming music services, and 92% is not,” says Cole, citing new research from YouGov released alongside the launch this week of new streaming service Electric Jukebox, for which his company is providing tech, catalogue and curation.
“Even if you only assume that half of that 92% was going to convert to digital in the next five years, that’s an enormous opportunity. And it leaves the market of people listening to music on their mobiles for £9.99 a month as possibly the smaller of the two.”