IFPI Global Report Shows Streaming Revenues Driving Global Music Revenue Growth
For the first time ever, global digital music revenue has overtaken physical revenue sales according to figures announced by IPFI, the global voice of the recording industry. This is an increase of 3.2% on the past year. Digital sales now contribute 45% of industry revenues, overtaking physical sales 39% share.
The digital age of music is amongst us, with music streaming leading the way in driving global music revenue. Streaming revenues are up 45.2% this year with streaming accounting for 43% of all digital sales worldwide, close to overtaking downloads (45%) to become the industry's primary digital revenue stream. The impact of digital streaming on the music industry has been remarkably significant in offsetting the decline in downloads and physical formats, assisting in a digital revenue increase of 10.2% to US$6.7 Billion. Total industry revenues grew 3.2% to US$15 billion, advancing the industry to its first year-on-year growth in nearly two decades.
The Global Music Report 2016 also highlights innovation and investment within the music industry for this year's positive figures.
Helped by the spread of smartphones, increased availability of high-quality music services and connected fans migrating onto licensed music services, streaming has grown to represent 19% of global industry revenues up from 14% the year previous - the fastest-growing revenue source for music sales worldwide. Streaming revenues increased 45.2% to US$2.9 billion and, over the five year period up to 2015, have grown more than four-fold.
Whether these trends continue into 2016 and are then seen in the IFPI Global Music Report 2017 are yet to be seen but it truly looks like streaming is here to stay and increase its foothold on the digital music industry.
Information and figures by the IFPI Global Music Organisation. To read the report in full, click here