Indie licensing agency Merlin conducted a survey of its members and found that digital service revenue increased in 2014 for nearly three-quarters of its respondents. Digital revenue now accounts for more than half of overall income for more than half of Merlin’s members. And for one in three indie labels, digital income generates more than 75% of total revenue.
The survey pointed to streaming and subscriptions as key factors in the growing digital revenue. One in three of the respondents said that those sources accounted for more than half of their digital revenue. In last year’s survey, that figure was just one in five.
“This year’s results highlight the speed at which music fans are transitioning towards streaming and subscription services, and how independent labels are leading that change, and growing their audience in the process – with the vast majority growing their digital revenues and expanding their business overall,” Merlin CEO Charles Caldas said.