IFPI Issues Annual Digital Music Report
The annual Digital Music Report compiled and published by the International Federation of the Phonographic Industry (IFPI) was issued today.
• Subscription services’ revenues up 51 percent in 2013, helping global digital revenues grow by 4.3 percent
• Europe sees growth for the first time in 12 years. Revenues stable in the U.S. and up in Latin America
• Sharp drop in Japan sees overall global industry revenues decline by 3.9 percent
• Global revenue excluding Japan fell by 0.1 percent
“Even accounting for the difficult situation in Japan, the global recording industry is in a positive phase of its development,” said IFPI CEO Frances Moore. “Revenues in most major markets have returned to growth. Streaming and subscription services are thriving. Consumers have a wider choice than ever before between different models and services. And digital music is moving into a clearly identifiable new phase as record companies, having licensed services across the world, now start to tap the enormous potential of emerging markets.”
According to the report, currently 28 million people across the globe use subscription streaming services, which is an increase of 20 million since 2010, and 8 million since 2012. For the first time subscription streaming services generated revenue above $1 billion worldwide. Over 450 subscription streaming services are licensed internationally, including global services such as Spotify, which expanded into 38 new markets in 2013, Deezer and Google Play, among others.
Though revenue from digital downloads fell by 2.1 percent globally, nearly two-thirds of all digital music revenues were generated by downloads. While sales of physical products continued to decline by 11.7 percent, they still accumulated over 50 percent of globally revenues with vinyl sales increasing in the U.S. by 32 percent and by 101 percent in the U.K.
For further analysis of the report check out the Mark Mulligan’s take over at the Music Industry Blog where he concludes, “there is still cause for optimism from these numbers. Subscriptions are going from strength to strength, at least in revenue terms, and the download sector remains robust in buyer number terms. But unless the CD problem is fixed, the best both those digital revenue streams can hope to do is consolidate the market around a small rump of digital buyers.”
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