The IFPI has released its Digital Music Report 2012. I would call an eight percent growth rate in digital music sales to be a complete bust for professional musicians hoping to earn decent money off this revenue stream. People love free and are willing to steal to avoid paying the producers of entertainment (us!). This growth rate is particularly bad since it comes after music industry revenues have tanked in recent years. Usually growth rates from a low number shows a higher slope, but even from a trough the growth seems muted. However, I'm willing to see some signs of hope here. Comments?
IFPI (International Federation of the Phonographic Industry) represents the recording industry worldwide with some 1400 members in 66 countries and affiliated industry associations in 45 countries.
Headline figures
- Digital music revenues to record companies grew by 8 per cent globally in 2011 to an estimated US$5.2 billion. This compares to growth of 5 per cent in 2010 and represents the first time the year-on-year growth rate has increased since IFPI started measuring digital revenues in 2004
- IFPI estimates that 3.6 billion downloads were purchased globally in 2011, an increase of 17 percent (combining singles and albums downloads)
- Some markets now see more than half of their revenues derive from digital channels, notably the US (52%) and South Korea (53%)
- Digital channels now account for an estimated 32 per cent of record company revenues globally, up from 29 per cent in 2010. This compares with 5 per cent for newspapers, 4 per cent for books and 1 per cent for films1
- Just The Way You Are by Bruno Mars was the top-selling single of 2011, selling more than 12.5 million copies
- Many major markets are seeing healthy growth in single track download sales: the US up 8 per cent in volume; the UK up 10 per cent; France up 23 per cent
- Consumer demand for an artist’s body of work remains strong in the digital world.
- Digital album volume sales grew by an estimated 24 per cent globally in 2011, with the US and UK up by 19 and 27 per cent respectively and France up 71 per cent
- The global number of paying subscribers for music services has grown by 65 per cent, from an estimated 8.2 million in 2010 to over 13.4 million in 2011
- Subscription has caught on exceptionally well in some markets, particularly in Scandinavia. In Sweden, for example, subscription accounted for 84 per cent of digital revenues in the first ten months of 2011, boosted by its national champion Spotify. Other markets saw sharp growth in subscription revenues, such as France with growth of more than 90 per cent in the first 11 months of 2011
RESOURCES - IFPI publishes Digital Music Report 2011 http://www.ifpi.org/content/library/...nd_figures.pdf
