Music Streaming Is Booming, and That’s a Problem for Music Sales

The problem for the music business is that most music streamers — around 80 percent of them — are free music streamers, relying on services like YouTube, Pandora and SoundCloud for the tunes, says MIDiA Research. And those ad-supported businesses generate about 10 percent of the revenue per user that subscription businesses do. […] The problem there is that the pool of people who will pay $10 a month for unlimited music may not be that deep. Midia says only 25 percent of consumers pay more than $10 for music every three months. A more realistic price, from a consumer’s perspective, might be $3 to $4 a month. But that price won’t be realistic for a while yet: The music labels will only drop it there when they have no other choice. – Peter Kafka,Re/code 
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