Price Waterhouse Cooper (PWC) released its Global Entertainment and Media Outlook 2014-2018, in which it forecasts growth drivers in the music business. The music-industry figures are summarized in an infographic here.
“Music streaming explodes” is PWC’s characterization of streaming’s role in industry growth, echoing a 2013 report from the RIAA. Price Waterhouse Cooper forecasts compound annual growth rate (CAGR) of music-streaming revenues at 14.5%, growing the earnings pie from $848-million to $1.7-billion.
As a portion of total music industry earnings, streaming is forecast to account for 37% of total digital recorded music revenues, up from 23% in 2013.
Music concerts are forecast to play a large role as well, with ticket sales forecast to grow at a slower rate (3.7% CAGR), into a larger pie ($8.3-billion in 2018).
What of music download sales? The RIAA has documented sliding sales starting in 2013 and continuing through the first part of this year. The PWC report is not apocalyptic on this subject. The prediction is for a modest recovery in 2015, overall growth for the five-year forecast period is a meager 0.1% CAGR.