Some years ago now, big multinational businesses started to become aware of the vast growth potential in the evolution of the digital music industry. Slowly but surely, this music format was beginning to replace the earlier conventional formats such as CD’s or cassettes. The digital music industry has become so big, that Apple, for example, despite being known as a technology giant, it actually owes a huge part of its income to the sale of music through iTunes.
Recently, enterprises such as Spotify, Google Play Music, Pandora, Tidal, and even YouTube with its new YouTube Red, have wanted to monopolize the digital music industry; valued at $5,594 million dollars in 2016, and expected to have a 14% growth rate, the same profit potential is very difficult to find in any other industry. The vast potential of this new method of music distribution has resulted in companies like Apple recently introducing Apple Music. And even Amazon, which started as an e-commerce company, shifted its focus and has introduced Amazon Music Unlimited.
With more than 3.3 billion dollars in annual earnings, which is expected to reach 6.2 billion in 2020, it’s easy to understand why so many businesses want a piece of this growing cake. And for us, as users, it’s very beneficial because more competitors means better deals, and these businesses will be fighting to have the best features in order to stand out from the rest.
Victor Ramos is a web analyst with Mijo! Brands, leading digital agency in CDMX and Puerto Vallarta. Take a look at our projects at www.mijobrands.com or send us an email at info@mijobrands.com