Can Spotify put the spark back to music sales?
Spotify, a commercial music streaming service, could be the spark to reignite music sales in Sweden and the world. Spotify was indirectly pointed to as the cause of increase in music sales.
Streaming music used to account for only 7% of music sales in 2009. However, fast forward to 2013, it now accounted for a whopping 70% of the total recording sales, according to the IFPI Sweden and the Swedish Recording Industry Association (GLF). Although the growth in music sales did not reach the same level it had years ago, the increase in music sales was still an improvement. Overall music sales was observed to continue a slow but steady upward trend since 2008. For the first half of the year, overall music sales grew by 12%.
As if that was not enough, the Swedish "streaming revolution" brought back strength to the weak national music sales figures. Sales went from US$150 million in 2012 to almost US$170 million this year.
However, the streaming revolution brought about by Spotify also reduced physical album sales in the country. From 80% of total music sales in 2009, physical album sales now accounted for only 25%, according to GLF.