IFPI Global Music Report: Music Revenues Up, But So Is 'Value Gap'
April 12, 2016 at 11:19 AM (PT)
The IFPI issued its 2015 Global Music Report, which found that music revenues increased 3.2% as digital revenues overtake physical for the first time. Digital sales contributed 45% of industry revenues, surpassing physical's 39% share, while Streaming revenues were up 45.2%.
* There was a 10.2% rise in digital revenues to US$ 6.7 billion, with a 45.2% increase in streaming revenue more than offsetting the decline in downloads and physical formats.
* Total industry revenues grew 3.2 per cent to US$ 15.0 billion, leading to the industry's first significant year-on-year growth in nearly two decades. Digital revenues now account for more than half the recorded music market in 19 markets.
Unfortunately, the transition to a digital economy has created what the IFPI called a "value gap," which "is the biggest brake on sustainable revenue growth for artists and record labels ... The fundamental weakness underlying this recovery: Music is being consumed at record levels, but this explosion in consumption is not returning a fair remuneration to artists and record labels."
"After two decades of almost uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere; and digital revenues overtaking income from physical formats for the first time," IFPI Chief Executive FRANCES MOORE said. "They reflect an industry that has adapted to the digital age and emerged stronger and smarter. "This should be great news for music creators, investors and consumers. But there is good reason why the celebrations are muted: it is simply that the revenues, vital in funding future investment, are not being fairly returned to rights holders. The message is clear and it comes from a united music community: the value gap is the biggest constraint to revenue growth for artists, record labels and all music rights holders. Change is needed -- and it is to policy makers that the music sector looks to effect change.".
Read the entire report here.