Digital streaming boosts music industry

Digital streaming services such as YouTube and Spotify were the fastest-growing source of revenues for the global recorded music industry in 2012, according to a new report.

Subscription and ad-supported streaming services, which allow people to listen to songs without purchasing them individually, paid $1.2 billion in royalties and license fees last year, up from $700 million in 2011. While streaming accounted for a fraction of the $16.5 billion in total industry revenues in 2012, its rapid growth highlights a significant shift in how consumers listen to music. A report by the International Federation of the Phonographic Industry, which represents the global recording industry, found that streaming services accounted for 20 percent of the $5.8 billion of digital revenues earned by the music industry in 2012.