London, UK (February 27, 2013)—Recorded music industry revenues rose last year for the first time since 1999, according to IFPI’s Digital Music Report 2013.
The global recorded music industry is on a path to recovery, fueled by licensed digital music services and rapid expansion into new markets internationally. Recorded music is also helping drive a broader digital economy, according to the annual Digital Music Report from the International Federation of the Phonographic Industry, which represents the recording industry worldwide.
Global recorded music industry revenues rose by an estimated 0.3 per cent to US$16.5 billion in 2012, the first year of industry growth since 1999. Digital revenues saw accelerating growth for the second year running, up 9 per cent, with most major digital revenue streams-downloads, subscription and advertising-supported-on the rise.
According to the report, the digital music business is globalizing fast, as smartphones and new licensed services span new and emerging markets. In January 2011, the major international download and subscription services were present in 23 markets. Today, they are in more than 100. New consumer research by Ipsos MediaCT, covering nine markets in four continents, shows that 62 per cent of internet users have used a licensed music service in the last six months.
In many countries, local repertoire accounts for the vast majority of the top selling albums of the year. In Italy, Spain and Sweden, eight in 10 of the top selling albums of 2012 were by local artists; in Germany, seven in 10; and in France six in 10.
Music is helping power social media platforms: nine in 10 of the most watched videos of all time on YouTube are music videos; nine in 10 of the most “liked” people on Facebook are artists; and seven of the top 10 most followed people on Twitter are artists.
The IFPI report also notes that key barriers to growth remain, in particular unlicensed music services. “The key priority remains to secure effective cooperation from intermediaries including advertisers, ISPs and search engines, who have a major influence on levels of copyright infringement,” states the report.
International Federation of the Phonographic Industry
Digital Music Report 2013