Ovum forecasts the digital music industry's WW revenues will reach $20bn by 2015-- showing CAGR of 24% from 2011 to 2015.
What will drive such growth? According to Ovum, it'll be strong growth in subscription-based music services.
However Ovum also says the industry is not doing enough to maximise its revenue potential-- due to free online radio services (Pandora and Grooveshark) and "freemium" services (Spotify). The analyst suggst such sites should maximise their advertising and premium subscription potential.
Ultimately Ovum says the digital economy has too much of free music-- and "not just the illegal kind".
Music subscription services from Apple and Google also come into Ovum's forecast.
Meanwhile one sees reductions on paid downloads-- which grew by just 3% in 2010 in the US.
