The major record labels reaped a combined $295 million in revenue from free ad-supported streaming services in 2014, up 34 percent from the previous year, new figures show.
The NY Post reports despite the double-digit growth, the freemium model remains the smallest slice of the nearly $2 billion streaming pie, according to a report from the Recording Industry Association of America.That category, which includes Google-owned YouTube, Vevo and free versions of Spotify, accounted for just 16 percent of overall streaming revenue. By comparison, paid subscription services, a category that includes Rhapsody and Spotify’s premium version, grew 25 percent year on year to $799 million.
The number of US paid subscriptions rose to 7.7 million in 2014, up from 6.2 million, and still a fraction of the 115 million households in the US.
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A third streaming category, including satellite-radio giant Sirius XM and Internet radio player Pandora, grew 31 percent to $773 million, the report shows.
The RIAA also piled on its criticism of Sirius and broadcast radio station owners in its latest report, saying they don’t fairly compensate musicians for their work.
The group, which represents the major record companies, has been locked in a legal battle with Sirius, claiming the satellite service uses recordings from before 1972 without permission.
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