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New Entry Did It the REPORT Issue 345 | 25 June 2014 Streaming finally counts towards the UK charts Contents: Also in this issue: from next month. And not before time given that the floor is starting to fall away from under the feet of downloads – the very format that a PAGE 6: PAGE 5: decade ago brought the singles market back to Beyond music:Beyond music: glorious life. Best in Glass?Unconsole » yourselves » A streaming chart is, however, not new as there PAGE 7: was a standalone chart launched in May 2012 Pinboard: PAGE 6: that had echoes of the 2004 chart that initially Stats, deals, Pinboard: isolated download sales before they were fully startups andStats, more deals, » folded into the singles (and then albums) chart startups and more » in 2005. PAGE 8: But rolling downloads into the UK chart was not Country profile:PAGE 7: such a big stretch no matter how slowly and United KingdomCountry » profile: tentatively the Official Charts Company (OCC) Japan » New entry did it. Buying a download was not that different from buying a CD single or a cassette. Streaming crashes into UK chart Streaming, however, marks something very, very different. It symbolises the start of the end for the unit-based obsession that has dominated The UK singles chart will contain streaming data from the British record business and, hence, the chart for over 60 years. Labels didn’t really care how next month, bringing it in line with markets like Sweden often a consumer played a song in their lifetime and the US where the very architecture of their charts – they just cared that they bought it. One play or 20,000 plays – it was all the same to them as have changed. The UK can expect tracks to take longer they’d got paid upfront. to get into the charts but, once there, to hang around. Now, however, it is all about the long game. It’s all about repeat plays as both the revenue model This will change both A&R and marketing, with new and (slowly) the chart wrap their collective head techniques deployed to get chart placings. With around access versus ownership. This issue of weighting was one that delayed the inclusion download sales now in decline, the biggest change to the of streaming into the full chart. Just how many UK chart since its inception could not be more timely. streams were the equivalent of a sale? We have COVER FEATURE the REPORT | 25 June 2014 | Page 2 continued... an answer now. It’s 100. But, as we shall see, this But the UK is nowhere near as far down the road the markets in line with the US (more of which is a number that is likely to change as streaming as Sweden. Last year, streaming accounted for below), which does include YouTube data. becomes more mainstream. just shy of 10% of UK label income according to the BPI. Downloads and CDs might be The most notable impact on the Swedish chart The UK lags behind the other markets in terms of faltering, but they make up the lion’s share of the appears to have been the elimination of singles modernising here. The US chart has historically British record business revenue so that is why zipping up the chart on week of release and been a complex cocktail of sales and airplay streaming is only tentatively counting now. tumbling back down again just as swiftly. The anyway whereas the UK chart was defiantly chart dynamic is now a lot slower and a lot sales-only. In March 2012, streaming went into the So, given that streaming is finally in the mixing steadier. US singles chart and by February 2013 YouTube bowl, what can the UK – a country where streams were also counting. It might be the consumers are arguably most interested in who “For the singles chart, it takes time to chart well,” biggest music streaming service out there but it’s is #1, if only just at Christmas – expect to happen explains Andreas Ahlenius, commercial director not counting towards the UK chart. Yet. to its beloved chart? We spoke to industry at Universal Music Sweden. “It is very different executives in the US and Sweden to ask them from the UK chart where you build a certain Nor is YouTube counting towards the Swedish level of hype, you hold everything back and how their charts have changed and what it is the reason for this is that it was worked out initially charts. For now. It is fitting that Sweden – the then release the single so the first week is very UK must prepare itself for now. in value terms – namely how many streams birthplace of Spotify, the service that arguably important – and then it usually drops from there. would be needed to generate the same value to most forced the hands of assorted national The Swedish situation: tracks will Whereas in Sweden it takes time to build up the a label as a standard download. As more people charts to jump into the streaming age – was an become slow builders and marketing number of streams that are needed to chart well in Sweden pay for Spotify (and, in its home early adopter of streaming into its charts. Back will have to evolve as it’s about listening rather than purchases. So it in October 2010, streaming started to count market, it really is the only game in town for the It makes most sense to look at Sweden first as it takes more time.” towards the singles chart and in September 2013 industry) that has made the average stream go is the most advanced market for streaming and streaming went into the album chart. This is only up in value with the net result being that fewer The most pronounced impact has been on one that adapted its singles chart four years ago fitting given that streaming accounted for 70% streams now equate, in value terms, to a single the singles chart but it is still early days for to incorporate streaming data. of label revenue in Sweden last year. It would download. streaming impacting on the album chart in Sweden. In September last year, streams started be ludicrous to not have streaming count in a When asked how they weighted streaming, An anonymous source Music Ally spoke to about to count towards album chart positions but what market shaped thus. IFPI Sweden said that they cannot make this this said, “We have had to change it over time is happening there is, for now, distinct from what public due to European to make it more relevant because the market is happening for singles. UK chart rules for streaming competition law but it is has changed. And it will continue to change.” So, understood that currently as streaming grows in the UK, we can expect a “To be honest it is all Spotify figures that make 100 streams = one download for tabulation purposes 100 streams “equal” a sale similar recalibration. up the singles chart whereas the album chart for tabulation purposes. is [a mix of] physical and Spotify,” explains As with the UK, it is only data from dedicated What is perhaps more Ahlenius. “Physical on a big release is maybe 30 seconds = length a track must be played for to qualify and licensed subscription and ad-supported interesting is the fact that 50% of the value in the chart whereas in the services that count in Sweden. So, for now, that this number has changed singles chart it is all Spotify. So that is more means YouTube streams do not count. There is 10 plays = cap on number of specific track plays by streamers (and fallen) a number dynamic and it changes more quickly.” of times since 2010. The no indication of when or if they could to bring COVER FEATURE the REPORT | 25 June 2014 | Page 3 continued... The other big impact, and related to the points streaming would have a significant impact on Chart facts (UK) raised above, is that international acts are now the chart.” 30m – 2003 single sales in the UK (25.4m/82.3% performing better in the album charts because He adds, “Since then, what I have noticed – and of them CD singles). of the recent changes. this is largely anecdotal – is that a lot of the 47.8m – 2005 single sales in the UK (55.1% of “You might have an R&B or dance act where the records that are performing very well for us are them downloads). fans don’t buy physically but they are listening rocketing up the Billboard Hot 100 chart and 183.3m – 2012 single sales in the UK (97.2% of to it on Spotify which means these acts are having an opportunity to dislodge some very them were single track downloads). now able to chart,” says Ahlenius. “A few years heavyweight competition. In the Hot 100 now you’ll see a good mix of young and new artists 3.7bn – audio streams delivered in the UK in 2012. ago it would have been very hard for an act like Rihanna, who has an audience that is young and The booking agents for live do the same.” whose records are performing incredibly well on 182m – 2013 single sales in the UK (96.4% of them streaming now having the opportunity to chart.” were single track downloads). urban, [to get high in the charts]. In a market The US situation: where YouTube like Sweden it is difficult to sell CDs – even for a Unlike the slow build of tracks that Ahlenius 7.4bn – audio streams delivered in the UK in 2013.
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