The music download industry is set to grow to $1.6 billion in 2020, according to a new report by music services company New Scientist.
The music industry will also grow by $0.2 billion this year, according the report.
The growth of the music download business is a direct result of the rapid rise of the Internet.
With music streaming now a mainstay of consumer consumption, the digital download business has grown to more than $1 billion, the report said.
“The online music download market is expected to be the most profitable in the world by 2020,” said Tim Winton, an analyst at New Zealand’s Macquarie Group.
There is a lot of room for growth in the industry, said Andrew Coughlan, an associate professor of finance at the University of Western Sydney.
It’s an industry that can continue to grow and expand, but we need to focus on the growth, not the growth that is already happening,” he said.
But digital download is a different story entirely from traditional downloads, according a report from music streaming service Spotify released last week.
Spotify’s report noted that the streaming service is set for a major growth boost with downloads growing by 7.4 percent year-on-year to more $9.6bn in 2020.
Digital download is also predicted to be $3.1 billion in 2021, according Spotify.
While the digital downloads market is growing at an impressive rate, it has seen a sharp drop in the number of users.
According to Spotify, there were 8.9 million active users in the first half of 2021, down from 9.5 million in the same period last year.
The report also found that in-app purchases are not seeing the growth they were expecting, and a significant drop in users is forecast for the same time next year.
Spotify said that it expects the industry will see $2.3 billion in in-game revenues by 2021, with more than half of that coming from mobile.