First it was the digital download that packed a big punch to knock down the music industry. However, as the industry tries to stand right back up on its feet, something else completes the one-two combo - music streaming.
Sales from music companies went flat after the rise of the digital music. In 2011, the market seemed to gain its momentum and sales were stabilized. This year, the revenue dropped once again. According to figures shown by Billboard and Nielsen, the industry dipped by 4.6% since January. Digital downloads dropped by 2.3% and physical compact disc albums and singles fell by an astounding 14$.
Streaming became the choice of consumers, which gained about 24% according to the same report.
Companies which offer free music streaming such as Spotify, Rhapsody, and Pandora all gained from this new trend. Apple, the world's largest seller of music, is threatened by this change of heart of music lovers.
However, the company is set to adapt with its new iTunes Radio feature, which attempts to gain revenue from streaming while revitalizing the dying digital download model.
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