Although sales of CDs continue to fall the streaming revolution has landed the music industry its biggest revenue in two decades, according to the International Federation of the Phonographic Industry's (IFPI) Global Music Report.
The success of acts like Drake, BTS and Ariana Grande has contributed to a surge in revenues of 9.7 percent to £14.6bn, which is the fastest growth rate since 1997.
The figures mark the highest level of income for the industry since 2006 at a time when CD sales accounted for 80 percent of global revenues.
The number of music fans using streaming services like Spotify, Apple and Amazon Music has risen by 34 percent to $8.9bn, while the sale of physical formats fell by 10 percent to $4.7bn.
The IFPI has reported that paid subscription services now account for 37 percent of global music revenues, but ad-supported commercials that run around YouTube music videos only account for a 10th of the global total.
The European Parliament recently adopted the Copyright Directive, which will transfer copyright liability from user to internet platform following a campaign from music industry bodies.
John Aalbers, chief executive officer, 7digital, commented: ‘The IFPI report shows positive growth in terms of streaming revenues, and I’m not surprised to see that has been driven by paid streaming. However, there is scope for much more growth.
‘Music is part of the fabric of our lives, but that doesn’t mean that everyone engages with it in the same way. Smart speakers with voice assistants and the AI behind them are opening streaming up to a much wider market beyond the core of music aficionados.
‘At 7digital, we believe that a blend of radio and streaming, and the provision of different models beyond 9.99 monthly subscriptions, will continue to widen the appeal of music services over the next few years. Those are the key elements we feel will deliver considerable value back to the music industry and the creators.’
The success of acts like Drake, BTS and Ariana Grande has contributed to a surge in revenues of 9.7 percent to £14.6bn, which is the fastest growth rate since 1997.
The figures mark the highest level of income for the industry since 2006 at a time when CD sales accounted for 80 percent of global revenues.
The number of music fans using streaming services like Spotify, Apple and Amazon Music has risen by 34 percent to $8.9bn, while the sale of physical formats fell by 10 percent to $4.7bn.
The IFPI has reported that paid subscription services now account for 37 percent of global music revenues, but ad-supported commercials that run around YouTube music videos only account for a 10th of the global total.
The European Parliament recently adopted the Copyright Directive, which will transfer copyright liability from user to internet platform following a campaign from music industry bodies.
John Aalbers, chief executive officer, 7digital, commented: ‘The IFPI report shows positive growth in terms of streaming revenues, and I’m not surprised to see that has been driven by paid streaming. However, there is scope for much more growth.
‘Music is part of the fabric of our lives, but that doesn’t mean that everyone engages with it in the same way. Smart speakers with voice assistants and the AI behind them are opening streaming up to a much wider market beyond the core of music aficionados.
‘At 7digital, we believe that a blend of radio and streaming, and the provision of different models beyond 9.99 monthly subscriptions, will continue to widen the appeal of music services over the next few years. Those are the key elements we feel will deliver considerable value back to the music industry and the creators.’
