This is the most comprehensive and accurate digital distribution comparison piece on the web.
Who is the best digital distributor? Read on… See the full comparison HERE
Digital Music News sat down with reps at 8 different digital distribution companies, CD Baby, DistroKid, Ditto Music, Loudr, Mondotunes, ReverbNation, Symphonic, Tunecore and Zimbalam, to get a full in-depth look at each company and for the reps to explain their company’s best features.
If you’ve stumbled across a roughly cut video of a teenager lip syncing to Justin Bieber, chances are it was made on Musical.ly.
Since hitting the top spot on the U.S. App Store last July, the breakout app has seen huge traction across Europe, Canada and Australia. It has even spawned its own roster of celebrities, who rack up millions of views and likes each day.
Musical.ly lets users — or “Musers” — create and share homemade music videos that last up to 15 seconds.
They can sing a cappella, or lip sync along to its library of sound clips, which range from pop songs to comedy dialogue and even the voices of other users.
Like Instagram and Snapchat, the app has rudimental editing tools which let users speed up or slow down their clips and overlay different filters over the top.
Once they are shared, friends can like and comment on these song clips, which play over and over in a loop. The more attention they get, the more likely it is the Musical.ly algorithm will spit them out on other users’ feeds — which combine Musers they follow with the app’s featured and suggested content.
Facebook Inc. has inked contracts with nearly 140 media companies and celebrities to create videos for its nascent live-streaming service, as the social network positions itself to cash in on a lucrative advertising market it has yet to tap—and keep its 1.65 billion monthly users engaged.
The company has agreed to make payments to video creators totaling more than $50 million, according to a document reviewed by The Wall Street Journal. Its partners include established media outfits like CNN and the New York Times; digital publishers like Vox Media, Tastemade, Mashable and the Huffington Post; and celebrities includingKevin Hart, Gordon Ramsay, Deepak Chopra and NFL quarterback Russell Wilson.
The arrangements are a way to encourage publishers to produce a steady stream of high-quality videos until Facebook figures out a more concrete plan to compensate creators, such as through sharing of ad revenue.
AEG Live, the world’s second largest festival producer and promoter, has joined forces with Snapchat to bring users ‘Live Stories’ from AEG affiliated festivals.
According to the companies, the first festivals to go live on the app will be
Stagecoach Country Music Festival (Indio, California)
Jazz & Heritage Festival (New Orleans)
Panorama (New York)
Hangout Music Festival (Gulf Shores, Alabama)
FYF Fest (Los Angeles)
The ‘Live Stories’ will allow users of the app to share their personal festival experiences and contribute to a larger collective story put together by Snapchat. The app will curate all the submitted snaps from the people attending the events and create a video that will be broadcasted globally. There will also be custom filters made specifically for each festival, for attendees only or those in close proximity to the event.
Andrew Klein, Senior Vice President of AEG Global Partnerships, says the partnership is…
“Unlocking the capability for our concertgoers to not only share their favorite moments with their fellow attendees, but also with music fans around the world.”
Ben Schwerin, Director of partnerships at Snapchat, adds…
”Partnering with AEG Live helps us capture thousands of unique perspectives from the event, allowing our community to dive in to the story and feel like they are actually there – from backstage to the front row. This deal also provides a great opportunity for brands to align with music content and reach our audience.”
Digital Music News posted a segment on growing digital revenues. See Below or CLICK HERE to read more!
For the first time ever, digital revenues has surpassed physical revenues worldwide.
It’s finally happened. In 2015, the global music market reached a major milestone as digital consumption surpassed physical, making it the primary revenue stream for the recorded music industry. Of the total global music revenue in 2015, digital accounted for 45%, overtaking physical’s 39% share.
Global digital revenue increased by 10.2% to $6.7 billion, with a massive 45.2% increase in streaming revenue. That offset the decline in physical revenue, which dropped 4.5%. Separately, download revenue tanked 10.5%, thanks to a massive shift towards streaming.
The above graph highlights the decline in physical revenue over the past 10 years and the significant rise in digital revenue within the same time period.
In 2014, digital and physical revenue were on par with each other for the first time, and now digital revenue has outweighed physical for the first time ever. The shift from physical to digital consumption is due to a number of reasons; technological advances and the rise in mobile phone consumption have been the main drivers of this change.
Global music revenue rose 3.2% to $15.0 billion, the music industry’s first year-on-year growth in nearly two decades.
The global music revenue has seen growth as a result of the uprise of streaming services, like Spotify, Apple Music, Tidal and several others.
Streaming revenue’s 45.2% increase constitutes to a massive $2.9 billion in revenue for the music industry, and over the past five years, streaming revenue has grown more than four-fold.
Of the total global music revenue, streaming makes up 19% which is a rise from 2014 where it took a 14% share. Streaming now accounts for 43% of digital revenue, which is close to overtaking download’s 45% share.
It is evident that people are responding well to streaming platforms, as premium subscriptions have also seen a dramatic increase in recent years with an estimated 68 million people now paying for a music subscription service.
Between 2012 and 2013, paid subscriptions increased by 8 million, and between 2013 and 2014 it increased by 13 million. Between 2014 and 2015, the figure increased by 27 million.
This shows that paid subscriptions have been steadily increasing up until last year, when there was a sharp spike in user numbers. This was a result of Spotify’s growth, and Apple Music’s fierce entrance into the music streaming market, racking up 10 million paid subscribers in 6 months in 2015.
Also, Tidal entered the streaming market, and by the end of 2015, had reached over a million users. Both Apple Music and Tidal have no free/ad-supported versions available.
The IFPI report highlighted some fundamental facts: the overall global music revenue increased for the first time in 20 years, digital revenue surpassed physical revenue, streaming revenue is expected to overtake digital revenue in the near future. There are more paid subscribers to streaming services than ever before, and this figure is increasing significantly year-on-year.
Despite the explosion in music consumption, artists and record labels are not receiving a fair remuneration, with ad-supported platforms one culprit. In the report, IFPI Chief Executive Frances Moore spoke out on what she coined the ‘value gap’:
”The value gap is the biggest constraint to revenue growth for artists, record labels and all music rights holders. Change is needed – and it is to policy makers that the music sector looks to effect change”.
IFPI says that the ‘value gap’ comes from services like YouTube that are able to ”circumvent the normal rules that apply to music licensing”. The IFPI goes on to say that these services ”conclude licenses at artificially low rates, claiming protection from so-called ‘safe harbor’ rules that were introduced in the early days of the internet”.
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