IFPI Report: World Music Business Drops Below $15 Billion
April 14, 2015 at 7:09 AM (PT)
Although streaming is on the rise, the worldwide music business dropped by .4% in 2014, enough to fall under $15 billion for the first time to $14.97 billion, according to figures just released by the INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY. Back in 1999, at its peak, the worldwide record industry generated some $26.6 billion in annual income.
Physical sales showed an 8.1% decline to $6.89 billion, and an 8% loss in download sales to $3.56 billion. Single track downloads declined by 10.9% in the year, while digital albums sales saw revenues drop by 4.2%. Ringtones were off $17.9% to $206 million.
Another notable finding, digital and physical music were about even in total revenue -- 46% apiece, worth around $6.85 billion apiece.
Those figures result from the IFPI counting SOUNDEXCHANGE collections in the U.S. -- monies paid out to artists and labels by digital and satellite radio services -- as "digital" income rather than performance royalties, which amounts to $773.4 million and makes up approximately 11.3% of 2014’s total "digital" figure and 5.2% of the overall global industry income from all revenue streams.
If you discount SOUNDEXCHANGE payouts from the industry’s $6 billion total "digital" income in 2014, digital revenues grew just 3% last year – up from $5.9 billion (2013) to $6.077 billion (2014).
By retrospectively adding SOUNDEXCHANGE collections to 2013’s digital income, the results indicate a 6.9% annual growth -- from $6.4 billion to $6.85 billion.
If the IFPI reported 2014’s overall global income without SOUNDEXCHANGE figures, physical would remain dominant, claiming 46% of revenues, with digital at 41% and sync/performance at 13%.
Global subscription streaming revenues rose 39% to $1.57 billion in 2014, and now make up 23% of digital revenues globally, up from 18% in 2013
That’s significantly ahead of ad-funded or "freemium" streaming users, who contributed 9% of total digital revenues, around $616m, in 2014, which represents a 38.6% increase over 2013.
In total, ad-supported and subscription streaming revenues now account for 32% of global digital revenues, or $2.19 billion, up from 25% in 2013, or $1.59 billion. That would equate to 14.6% of total global industry income on all fronts -- less than a third of the 46% share claimed by physical formats.