Spotify has helped reduce music piracy but has also displaced sales, a new report has claimed.
Research conducted for the European Commission explored the use of Spotify in different countries to assess its impact on the way music is listened to.
According to the report, there is ‘clear evidence of piracy displacement’ from the service. Every 47 streams reduces by one the number of tracks obtained without payment.
However, at the same time for every 137 Spotify streams, there is one less track sold.
The analysis claimed that with current industry revenues for track sales at $0.82 per sale and the average payment received per stream at $0.007 per stream, estimates show that the losses from displaced sales are approximately outweighed by the streaming revenue gains.
The report stated: ‘In other words, our analysis shows that interactive streaming appears to be revenue-neutral for the recorded music industry.’
Visit the European Commission’s website to read the full report.
Research conducted for the European Commission explored the use of Spotify in different countries to assess its impact on the way music is listened to.
According to the report, there is ‘clear evidence of piracy displacement’ from the service. Every 47 streams reduces by one the number of tracks obtained without payment.
However, at the same time for every 137 Spotify streams, there is one less track sold.
The analysis claimed that with current industry revenues for track sales at $0.82 per sale and the average payment received per stream at $0.007 per stream, estimates show that the losses from displaced sales are approximately outweighed by the streaming revenue gains.
The report stated: ‘In other words, our analysis shows that interactive streaming appears to be revenue-neutral for the recorded music industry.’
Visit the European Commission’s website to read the full report.
