IFPI: Global Music Up 6%, Largest Annual Growth in 20 Years

IFPI

THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY (IFPI) issued their annual report on Global Music today, and indicated a 6% rise in revenue worldwide, the biggest increase since the organization began tracking the numbers in 1997. DRAKE was the #1 global artist and BEYONCE's "Lemonade" the top-selling album for the year.

Wrote Chief Executive FRANCES MOORE,  “The global recording industry is seeing modest growth after more than a decade of significant decline. Years of investment and innovation have begun to reward an industry that has shifted from adapting to the digital age, to driving it.”

The figures represented the second consecutive year of growth. Global recorded music revenues increased by 5.9% to $15.7 billion, of which digital income now accounts for an even half. Streaming revenue was up 60.4%, driven by some 112 million users of paid streaming services (that number rises to 212 million including users of ad-supported, i.e. free, services); digital revenue is up 17.7%. That growth more than compensated for the continued weakness of download sales, which were down 20.5%, while physical sales dipped 7.6%. CHINA, INDIA and MEXICO exhibited the most growth in streaming, with increases of 20.3%, 26.2% and 23.6%, respectively.

Despite the rosy forecast, the report didn't hesitate to name a potential threat in "the value gap -- the growing mismatch between the value that user upload services, such as YOUTUBE, extract from music, and the revenue returned to those who are creating and investing in music.”

Piracy also remains an enormous problem: IFPI identified some “19.2 million URLs as hosting infringing content in 2016 and issued 339 million requests to Google requiring it to ‘delist’ infringing sites.” 

The U.S. market rose by 7.6% compared with 2015’s slim 1% rise, while streaming income soared more than 80%. EUROPE was up 4% and LATIN AMERICA showed the largest growth with a 12% rise.

Added MOORE,  “Music’s potential is limitless, but for this growth to become sustainable – for investment in artists to be maintained and for the market to continue to evolve and develop – more must be done to safeguard the value of music and to reward creativity. The whole music community is uniting in its effort to campaign for a legislative fix to the value gap and we are calling on policymakers to do this. For music to thrive in a digital world, there must be a fair digital marketplace.”

After DRAKE, the Top 10 Global Recording Artists were DAVID BOWIE, COLDPLAY, ADELE, JUSTIN BIEBER, TWENTY ONE PILOTS, BEYONCE, RIHANNA, PRINCE and THE WEEKND.

"Lemonade," which sold 2.5 million units total -- not counting streaming figures -- topped the list which also included ADELE's "25," DRAKE's "Views," METALLICA's "Hardwired... To Self-Destruct" and DAVID BOWIE's "Blackstar." DRAKE's "One Dance" topped the Global Digital Singles list with 12.5 million units, followed by JUSTIN BIEBER's "Love Yourself," THE CHAINSMOKERS f/HALSEY's "Closer," SIA's "Cheap Thrills" and JUSTIN BIEBER's "Sorry."

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