Global music revenues have increased by 3.2 percent as digital revenues have overtaken physical for the first time, new IFPI figures have revealed.
IFPI’s Global Music Report 2016 showed that revenues from digital music now make up 45 percent of total revenues, compared to 39 percent for physical sales.
Streaming revenues increased by 45.2 percent due to the increasing use of smartphones and licensed subscription services.
This helped drive the 3.2 percent global growth of total industry revenues to $15bn (£10.5bn). According to the IFPI, this is ‘the first significant year-on-year growth in nearly two decades’.
However, the report warned that the biggest worry for music creators and the wider industry is the ‘value gap’ in terms of the amount of music listened to and money returned to them.
Frances Moore, IFPI chief executive, said: ‘After two decades of almost uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere; and digital revenues overtaking income from physical formats for the first time. They reflect an industry that has adapted to the digital age and emerged stronger and smarter.’
"This should be great news for music creators, investors and consumers. But there is good reason why the celebrations are muted: it is simply that the revenues, vital in funding future investment, are not being fairly returned to rightsholders. The message is clear and it comes from a united music community: the value gap is the biggest constraint to revenue growth for artists, record labels and all music rightsholders.’
Visit the IFPI website to read the full report.
IFPI’s Global Music Report 2016 showed that revenues from digital music now make up 45 percent of total revenues, compared to 39 percent for physical sales.
Streaming revenues increased by 45.2 percent due to the increasing use of smartphones and licensed subscription services.
This helped drive the 3.2 percent global growth of total industry revenues to $15bn (£10.5bn). According to the IFPI, this is ‘the first significant year-on-year growth in nearly two decades’.
However, the report warned that the biggest worry for music creators and the wider industry is the ‘value gap’ in terms of the amount of music listened to and money returned to them.
Frances Moore, IFPI chief executive, said: ‘After two decades of almost uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere; and digital revenues overtaking income from physical formats for the first time. They reflect an industry that has adapted to the digital age and emerged stronger and smarter.’
"This should be great news for music creators, investors and consumers. But there is good reason why the celebrations are muted: it is simply that the revenues, vital in funding future investment, are not being fairly returned to rightsholders. The message is clear and it comes from a united music community: the value gap is the biggest constraint to revenue growth for artists, record labels and all music rightsholders.’
Visit the IFPI website to read the full report.
