Music: an industry in transition

Music continues to be a multi-format industry with global revenues divided equally between digital and physical.

Music continues to be a multi-format industry with a diversity of demand across multiple formats.  Research by Ipsos in 13 countries found that 37% of respondents had purchased either CD or vinyl in the last six months while 26% paid for downloads.  Subscription and freemium models such as Spotify and Deezer are the fastest growing revenue streams, up by 39% in 2014.  Better tech infrastructure and cheaper devices with more storage space are driving the growth of streaming services.

This week the UK’s Official Chart Company announced its decision to launch charts for the UK’s top 40 vinyl singles and albums.   Vinyl record sales have hit a 20 year high in the UK and sales continue to grow.  Sales in 2015 are expected to be ten times that of those just six years ago.  Worldwide revenues for vinyl records are up 55% in the last twelve months and they now account for 2% of the entire market.

Meanwhile, IFPI, the recorded music sector's international trade body, has released its Digital Music Report for 2015.

Key findings:

  • Digital revenues up 7% in a year
  • Digital revenues account for 46% of all global music sales – equal to that of physical revenues (the remaining 8% is performance rights)

A diverse picture in Europe - Growth

  • Germany, Europe’s biggest market has seen a 1.9% growth over the last 12 months
  • Spain saw a growth of 15.2%
  • Other European countries experiencing revenue growth include the Czech Republic (4.6%); Denmark (2%); Hungary (7.8%) and Ireland (8.5%)

A diverse picture in Europe – Decline

  • France has seen a decline of 3.4%
  • UK revenues declined by 2.8%

Sources: IFPI; 1709 blog; The Guardian.

You can download the full report here.