Streaming Revenues Trump Music Downloads For First Time
IFPI’s latest Global Music Report reveals Apple and Spotify are the music industry’s largest revenue generators, with sales from music streaming surpassing physical and digital downloads for the first time.
The global body credits the rapid growth of streaming services over the past three years for the music industry’s turnaround – recently posting its third consecutive year of positive revenue growth.
The International Federation of the Phonographic Industry (IFPI) states subscription-based music streaming represented 38% of all recorded music in 2017, versus 29% the year prior.
Total revenues for 2017 jumped 8% to US$17.3 billion.
Driven by “phenomenal” growth in music streaming, Australia notched a 13.4% increase in 2017 to US$413 million. Physical music sales dropped 11%.Despite the surge, music industry revenue pales in comparison to 1999’s heights (representing only 68% of the market’s peak).
Frances Moore, IFPI Chief Executive, claims whilst “the industry is on a positive path of recovery” it’s “very clear that the race is still far from won”.
The news comes as the music industry continues to witness dynamic change. Back in 2014, music sales reportedly plummeted ~40%, following the surge of file-sharing service Napster, and the interim development of download platforms such as Apple’s iTunes.
Read IFPI’s Global Music Report 2018 here.