The International Federation of the Phonographic Industry has published its annual state of the industry report on the music industry and credited services like Spotify and Apple Music for a resurgence in growth for the industry.
The report says that music industry revenue increased 5.9% in 2016, the highest growth the industry has seen since the IFTPI started tracking the industry in 1997.
What’s more, they say the bulk of that growth was driven by on-demand listening revenue, which grew 60.4%.
IFTPI say that “this was a second consecutive year of global growth for the industry, with revenue increasing in the vast majority of markets, including nine of the top ten. This growth, however, should be viewed in the context of the industry losing nearly 40% of its revenues in the preceding 15 years.”
“Streaming has been the clear driver of this growth, with revenues surging by 60.4%. With more than 100 million users of paid subscriptions globally, streaming has passed a crucial milestone. It makes up the majority of digital revenue, which, in turn, now accounts for 50% of total recorded music revenues”
“Streaming is now established as the most prevalent and significant format in the modern music industry, fuelling growth in almost all major markets and starting to unlock the phenomenal potential within developing territories. Physical sales remain significant in certain countries and for certain artists, and the vinyl revival has been a headline grabber, but streaming is the growth driver that is revolutionising the business,” they say.
