London – Global revenues from digital music subscription
services are expected to increase at a compound annual growth rather of over
60% from 2011 to 2015, when they will reach $20 billion, according to a report
from analyst firm Ovum.
The firm expects the Asia-Pacific region to account for
35% of the market, boosted by strong growth in China and India.
expected healthy growth, Ovum cautions that "free" music services
could be limiting revenue potential for the industry.
"There is too much
free music available in the digital economy and not just the illegal
kind," said Ovum analyst Mark Little.
"Free Internet radio such as
Pandora or Grooveshark, and freemium on-demand music services such as Spotify,
are offering free music without maximising advertising or premium subscription
revenues for themselves or the industry."