The Pandora Effect On Music Sales

http://music3point0.blogspot.com/2014/11/the-pandora-effect-on-music-sales.html

A study by Pandora earlier this year has found that the more a song is streamed on the service, the more actual sales it will generate. If that's the case, it turns out that Pandora is a radio-like service in more ways than one, as radio plays have always lead to sales as well.

The study, which was outlined in a Billboard article, found that the average positive effect resulted in a 2.31% increase in music sales for new music, and 2.66% for catalog in something they called "track equivalent albums," which is a metric that counts 10 tracks as an album.

This ratio really changed between music released by major and indie labels. New music from the major labels played on Pandora resulted in a 2.82% positive effect, but only 0.62% for indies, who fared much better on catalog at 3.85% compared to the major's 2.36%.

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