Google Music Obtain Gross sales Miraculously Rising Regardless of Their Dying In all places Else
We’re in a music gross sales apocolypse whereas streaming grows, so it’s no shock Google Music‘s on-demand streaming service subscriber numbers are rising. However one way or the other, Google’s obtain gross sales rising too, Google’s VP of International Music Partnerships Zehavah Levine stated immediately on the SF MusicTech convention. She refused to disclose any concrete subscriber numbers once I requested, however stated “Not solely are our subscribers rising however our obtain numbers are rising regardless of the business development.” That development noticed digital monitor gross sales down thirteen% within the first half of 2014 in comparison with the primary half of 2013.
Google launched its clumsily named “Google Play Music All-Entry” on-demand streaming providers in Might 2013 as a competitor to indepedent apps like Spotify and Rdio. It acquired curated playlist service Songza in July to humanize its comparably dry music app. Levine stated as we speak that it now hosts 30 million songs for streaming, whereas additionally operating its music locker service for streaming your personal assortment to different units and its Google Play Music Retailer.
Collectively, Levine says “Google Play music generates lots of of hundreds of thousands a greenback per yr for the music business.” However the division’s focus proper now’s on rising its subscriber rely as a result of she says streaming solely turns into worthwhile “at scale”. Ultimately, Google Music will look to premium options to attract in subscribers, stated Levine, mentioning excessive-definition recordings as on potential draw.
Google’s VP of International Music Partnerships Zehavah Levine
However why would Google function a music retailer and streaming service simulataneously? “I don’t consider that subscription providers cannabilize gross sales.” She then relayed a really fascinating reality to show it. “We launched our retailer a yr and a half earlier than our subscription service. when you take a look at our subscribers who all got here after our retailer, extra of our subscribers purchase music after turning into a subscriber than stopped shopping for music after turning into a subscriber.” She concludes, “We’re not seeing cannabilization.”
That’s a controversial perspective Taylor Swift may need to hear, as she created an enormous hubbub within the music enterprise after pulling her music from Spotify citing shrimpy royalties. Spotify’s Daniel Ek rebuked her argument right now saying streaming royalties could be massive for prime artists.
After Levine’s hearth chat with label exec Ted Cohen, I cornered her to ask extra about obtain gross sales. She admitted she didn’t know if gross sales have been up on a per consumer foundation, however informed me that for Android customers with out iTunes entry, Google Play is actually the one means to purchase music. With over 1 billion lively Android customers, meaning there are nonetheless loads of individuals shopping for music.
“sixty seven% of the income final yr got here from gross sales” Levine stated, referring to gross sales as a proportion of document music income. “We’re nonetheless in a world the place extra individuals are shopping for music than subscribing. We’re going to be in a world that helps each entry and possession for a few years. There’s room for each fashions.”