Global digital revenues will explode in the next five years, according to a new market research report. But where will new digital consumers come from and how much will they pay?
Technavio, a market research company that covers sectors ranging from healthcare to aerospace, believes global annual digital revenues will nearly double to $16.02 billion in 2019 from $8.10 last year — a cumulative annual growth rate of 14.61 percent. That alone is a bold prediction considering global digital revenues have been far less spectacular in the previous five years. From 2008 to 2013, global digital revenues grew 48 percent, according to the IFPI.
In any case, TechNavio expects a huge influx of digital music users to drive this revenue gain. The company forecasts the number of digital music consumers — it employs the broad term “users” — will increase 126 percent to 2.55 billion, from 1.42 billion. These users could be anything from paying downloaders to subscribers to services such as Spotify and Deezer.