This Week in Review has highlighted some innovations in the digital sector, with audio streaming now becoming the largest share of audio consumption. Furthermore, SoundCloud and Pandora have made some executive decisions. Additionally, digital radio has taken over cars, with 8 out of 10 cars registered in 2016 featuring the latest digital radios.
Nielson Music has released its 2016 U.S. year-end report. The report shows that 2016 saw an overall year-on-year volume growth of 3%, mainly due to the 76% increase in on-demand audio streams compared to 2015. On-demand audio streaming has now grown to 38% of total audio consumption; becoming the largest share of consumption. For the first time in history, on-demand audio streaming share has now surpassed total digital sales.
SoundCloud’s co-founder, Eric Wahsforss, is stepping away from the role of CTO and instead taking the new position as chief product officer. To replace Wahsforss, Souncloud has hired Yahoo’s vice president of engineering, Artem Fishman, as the new CTO.
84% of car models registered last year are now fitted with digital radio. In 2016, 2.28 million cars hit the road with digital radio; this is the first time the two million milestone has been reached. Over the past five years, the number of newly-registered cars factory-fitted with digital radio has increased more than four-fold. This is thanks to major investment by manufacturers.
Pandora plans to reduce its U.S. employee base by approximately 7% by the end of Q1 2017. This is to to “focus the company on the most significant opportunities” (Tim Westergren, Founder and CEO of Pandora). It will cost Pandora about five to seven million dollars to make these cuts because of severance packages and benefits costs.