The music industry added 27 million net new streaming subscribers in 2015, according to this week’s IFPI figures, taking the global total from 41 million to 68 million people paying for services like Spotify and Apple Music.
Yet in some quarters, there is concern that the dominant $9.99-a-month model will run out of steam in the near-to-mid future, forcing the industry to sanction more lower-priced subscription models. However, major labels do not yet see a saturation danger in the current pricing strategy.
Michael Nash, EVP of digital strategy at Universal Music Group, told Music Ally this week that he is confident there is more growth to come. “We are at the early stage of adoption for subscription,” he said.
“It’s being driven by fundamental technological change and we are going to be in a world pretty soon of 5bn smartphones. We don’t think there are going to be 5bn $9.99-a-month subscribers, but we think there are going to be hundreds of millions of $9.99 subscribers and then people consuming content backed by a bunch of different models.”