On-demand music streaming has gone up over 42% in the last year

Nielsen’s U.S. music report on the first half of 2014 shows digital music consumption rapidly shifting from downloads to streaming. On-demand streaming was up 42% over the first half of 2013, racking up 70 billion play in the first half of 2014. Meanwhile, digital track sales fell 13% to 593.6 million and album sales fell 11.6% to 53.8 million. The report on US trends (not international) makes Apple’s acquisition of Beats looks smart, as its iTunes download sales model is quickly dying out. As a whole, dismal digital and physical sales dragged total music sales plus streaming industry down 3.3%. Back in the analog world, hipsters are making a serious impact as vinyl sales rose 40% over 2013 to 4 million in the first half of this year. That’s the only medium where sales grew. While YouTube’s music videos have been strong provider of music streaming for years, the rise of apps like Spotify is pushing on-demand audio music streaming to grow faster (+50%) than video (+35%). The two are now nearly the same size, as 33.65 billion songs were streamed in the first half of 2014, compared to 36.64 billion music video streams. At this rate, pure audio streaming will overcome music video streaming in the U.S. by the end of 2014. Internationally, where many of the top streaming apps aren’t always available, YouTube is probably still a bigger chunk of consumption.