Report: Streaming predicted to make $500m revenue for Merlin members this year

How has streaming changed the landscape for those 20,000+ global labels and services signed with Merlin in 58 countries for digital representation?

Statistics and observations put forward by Merlin CEO Charles Caldas at keynote presentation at Toronto’s Canadian Music Week looked to answer that question.

And Australian indies should take note – the fastest streaming revenue growth is in Latin America, China and Southeast Asia. Brazil is now a bigger market than Canada or France for that income source.

Furthermore, 42% of Merlin members make more money outside their home markets. In short, indies are now playing on a level field.

“We’re looking ahead with a huge amount of optimism,” Caldas added.

“The top of the market is less dominant now. The belly of the beat, the middle, has expanded.”

Revenue predictions for this year are between $470 million and $500 million.

It was $353 million the last year, and just $45 million five years ago – an indication of how fast the digital age has helped the indie sector.

In a 2013 survey conducted by Merlin, almost a quarter of respondents reported that streaming made more income than download sales, particularly in Europe.

There nearly a third of Merlin members said they now bring in more than 50% of digital income through streaming.

In the US, this figure dropped to 16%.

In a panel discussion with Caldas, Justin West (Secret City), Laura Dath-Lienenkamper (Ferryhouse) and Nick Blandford (Secretly Group) all were buoyed about the future – there was growth, new income sources, and it was important that indie labels continued to sign acts because they were passionate about them, even if they hadn’t sold a single unit.

It was also important to get their acts profiling outside their home markets and to check-list at least 10 other markets they could work in.

Caldas summed up: “We’re really trying to use this tenth year landmark to look back and understand how the market has changed and evolved and where we’ve gotten to.

“But more importantly where are we going and how can we use what we’ve learned in the last 10 years to try and navigate the next set of changes.

“Because if anything is certain in the digital music marketplace, it’s that it’s a state of constant change, innovation and flux.”