Digital Sales, New Markets Spur World Music Sales Growth
April 10, 2013 at 3:48 AM (PT)
The rise of subscription digital sales -- especially in new markets such as BRAZIL, INDIA and MEXICO-- were the main reasons that global music sale increased to levels not seen since 1999, the TORONTO STAR reported. The data was compiled and released by the LONDON-based INTERNATIONAL FEDERATION OF PHONOGRAPHIC INDUSTRY (IFPI).
Global recorded music revenues are up 3% over 2011, boosted by downloads, subscription and other channels, the report states, while digital revenues are up 9%, with major music services now open in more than 100 markets. The U.S. remains the world’s largest music market, but BRAZIL, INDIA and MEXICO enjoyed market growth of 24%, 42% and 17%, respectively, since 2008. In 2012 revenues in INDIA reached an all-time high while LATIN AMERICA was the fastest growing region of the year.
Digital channels now account for 35% of overall industry trade revenues, while physical sales now represent 57% of record companies’ income. Downloads remain the biggest source of digital revenues, with combined unit sales of track and album downloads up by 11% in 2012.
Music streaming services was enjoyed a dramatic jump in popularity, with music subscription and ad-supported streaming services now account for 20% of digital revenues globally, up from 14% in 2011. EUROPE is ahead of the U.S. in this category, as Subscription and ad-supported revenues combined now account for 31% of its digital music revenues.
Digital album downloads grew faster than singles, and vinyl sales hit their highest point since 1997. Consumer usage on streaming services shows that the album format remains very relevant. Many of the year’s best-selling albums generated a large streaming volume across all tracks included on the album.