• Sweden edition
 
Swedes prefer streaming to downloading

Swedes prefer streaming to downloading

Published: 10 Mar 2013 12:05 GMT+01:00
Updated: 10 Mar 2013 12:05 GMT+01:00

Legal downloading sites like Apple's iTunes Store were once thought to be a panacea for the global music industry, providing an alternative to illegal download sites like Sweden's Pirate Bay.

But if the high-tech Scandinavian nation is anything to go by, music downloads could soon be as obsolete as CDs or vinyl records.

iTunes' success has been modest here, with the vast majority of consumers preferring to stream songs rather than owning them on a hard drive.

Last year, 2012, was the best year for music sales in Sweden since 2005, with 63 percent of revenue coming from digital sources, according to data from the Swedish Recording Industry Association (GLF). Out of that, 90 percent came from streaming services.

"Norway and Sweden are similar in that a large part of music revenue comes from streaming, and in that both countries have seen strong growth," said Ludwig Werner, managing director of the Swedish chapter of the International Federation of the Phonographic Industry (IFPI).

Other countries, including Europe's largest economy Germany, still derive most of their music sales from CDs, he noted.

With income still lagging the heydays of the early noughties, when file-sharing began eating into results, Werner said it was too early to tell if the music industry was out of the woods.

Last year's sales of 943 million kronor ($148 million) in Sweden was up 13.8 percent from the previous year, but well below the 1.55 billion registered in 2002.

The Swedish turnaround has been driven by two events: In 2009, the Ipred law came into effect, giving copyright holders the right to require service providers to reveal details of users who share files, paving the way for legal action.

Also contributing to a rise in legal music sales was Spotify, the digital media juggernaut launched by Swedes Daniel Ek and Martin Lorentzon in 2008. The streaming music service still counts Sweden as one of its most successful markets.

"We do see a similar trend (for sales) across the Nordics, but primarily for Sweden and Norway where the penetration for streaming services is very high," spokeswoman Marine Elgrichi said.

According to the company, the 1,000 kronor that a paying Spotify user spends on music per year is twice that of a user who downloads songs.

Asked about the criticism levied at the digital music service for how it compensates artists, Elgrichi said it pays 70 percent of revenues back to record labels and collecting societies, who then pay the artists.

Last spring, Spotify had paid out a total of 1.6 billion kronor. At the beginning of this year that amount had doubled.

"To double that figure in under a year shows the huge strides we're making," Elgrichi said.

Tom McAlevey, founder of Radical.FM, a Swedish music streaming start-up modelled on US-based Pandora Internet radio, said streaming music services would create "the most lucrative era the music industry has ever been in."

According to his own calculations, between 100 and 200 plays on Spotify earns a record company the same amount of money it would make from a download.

"After that it's just pure profit. No one's buying anything a second time on iTunes," he said.

"It's going to be the most lucrative thing ever because you get paid forever," he argued.

Artists' criticism of streaming services like Spotify was beginning to subside as they were "starting to understand the math," he said.

The rise of streaming music is already affecting how record labels operate. With more people discovering new artists through shared playlists and "tailored" radio stations like Pandora that predict what kind of music the listener wants to hear, there's less need for costly advertising campaigns to

promote the performer.

"Previously most of our marketing activities were tied to paying for exposure," said Robert Litsen, an executive at Swedish-based Cosmos Music Group.

Promotional campaigns for a singer or a band were now more focused on "what you communicate" rather than "how much you're willing to pay," he added.

Others believe it could shift the industry's economic cycle away from the traditional spike in CD sales before Christmas.

"With less focus on the Christmas market, we can spread out the releases of albums at different times, when artists have more of a chance to stand out," the managing director of Universal Music Sweden, Per Sundin, said in a recent report from IFPI.

Prior to the controversial Ipred law, Sweden was at the forefront of file-sharing activism, and in 2006 fans of the website Pirate Bay formed the Pirate Party to campaign for copyright reform.

But party leader Anna Troberg said she didn't think the crackdown on file-sharers was behind the music industry's newfound success.

"I think it's because they've finally begun using new technology to their advantage, rather than trying to fight it," she said.

Spotify was a good alternative for "chart music", but finding the sort of niche acts she listened to herself was harder, Troberg noted.

AFP/The Local/nr Follow The Local on Twitter

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

04:13 March 11, 2013 by Phillynilly
It won't be long until streaming is made illegal as well...
Today's headlines
Interview
'The concept of race is a slippery slope': Ullenhag
Integration Minister Erik Ullenhag. Photo: Pontus Lundahl/TT

'The concept of race is a slippery slope': Ullenhag

Integration Minister Erik Ullenhag tells The Local why he plans to remove the term "race" from all Swedish law, how he responds to his critics, and why Sweden must steer clear of xenophobia. READ  

Sweden's tourism figures on the rise for 2014

Sweden's tourism figures on the rise for 2014

Tourism in Sweden is on the rise, with the first half of 2014 seeing a boom in visiting figures for both domestic and foreign tourists. READ  

Northern Dispatches
How I tackled northern Sweden's savage insects

How I tackled northern Sweden's savage insects

Ex-Londoner Paul Connolly has just survived a northern Sweden heat wave. But it wasn't the high temperatures that were the real problem, he recounts. READ  

What's On in Sweden - Pride Parade

What's On in Sweden - Pride Parade

Saturday marks the Stockholm Pride Parade, the biggest event of Pride Week (and the biggest Pride Parade in Scandinavia). Here's what to see and where to be, as well as plenty of other activities in Sweden's three biggest cities for the weekend. READ  

Railway fatalaties on the rise in Sweden
File photo: Carl Dougge/Flickr

Railway fatalaties on the rise in Sweden

Even though Sweden's Traffic Agency has drastic plans to reduce the number of people killed by trains in Sweden, a new report shows that figures are on the rise. READ  

Woman finds Ikea bags stuffed with 80 skeletons

Woman finds Ikea bags stuffed with 80 skeletons

UPDATED: A woman in southern Sweden is furious after stumbling upon scores of skulls and human bones inside Ikea bags in a church. The man who dug up the bones, however, says it's not as bad as it looks. READ  

Swedish Wikipedia jumps to second biggest

Swedish Wikipedia jumps to second biggest

There are now more Swedish Wikipedia entries than any other language in the world, besides English. And there's one Swede who's largely responsible. READ  

Assault with iron pipe 'no hate crime': police
The aftermath of the attack in Seved, Malmö on July 6th 2014. Drago Prvulovic / TT

Assault with iron pipe 'no hate crime': police

Police in southern Sweden have concluded that a man who was beaten with an iron pipe for hanging an Israeli flag in his window was not a victim of a hate crime. READ  

AstraZeneca hikes earnings outlook
Photo: Claus Gertsen/TT

AstraZeneca hikes earnings outlook

After fighting off a fierce takeover bid from Pfizer, Swedish-British drugmaker AstraZeneca raised its 2014 earnings outlook and posted rising second quarter sales on Thursday. READ  

Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Stockholm demonstration against Israel
National
Stockholm Pride bars Sweden Democrats
National
Gender neutral pronoun 'hen' enters dictionary
Society
Top ten cafes in Stockholm
People-watching
Gallery
People-watching - Stockholm Pride
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »

 

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

 
 
 
Photo: Henrik Trygg/Imagebank Sweden
Society
Sweden worst in EU at getting foreigners jobs
Lifestyle
Stockholm Pride kicks off
Analysis
The top six ways the US and Sweden differ
National
Swedish youth suicides hit 25-year high
National
Politician reported for selling 'negro ball'
National
Police turn blind eye to Swedish 'slave trade'
Gallery
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Gallery
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

743
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se