LONDON (CelebrityAccess) – The 2015 edition of International Federation of the Phonographic Industry' Digital Music Report reveals that revenue from digital music was on par with that from from physical sales for the first time in 2014.
According to the report, digital and physical sales each accounted for 46 percent $14.97 billion in global music revenues, with revenue from performance rights and synchronization making up for the rest.
The growth in digital was driven by subscription-based music streaming services such as Spotify and the IFPI identified substantial room for growth in the sector.
A study, conducted on behalf of the IFPI by market researcher Ipsos shows that 35 per cent of consumers have accessed free music streaming services in the last six months, compared to 16 per cent using paid-for music subscription services. While consumer use of free and paid-for services varies markedly between countries, there are some markets, such as Sweden and South Korea, proving that consumers will pay in large numbers for premium music subscription.
The Ipsos research shows that 35 per cent of consumers have accessed free music streaming services in the last six months, compared to 16 per cent using paid-for music subscription services. While consumer use of free and paid-for services varies markedly between countries, there are showcase markets, such as Sweden and South Korea, proving that consumers will pay in large numbers for premium music subscription.
Frances Moore, chief executive of IFPI, says: “The recorded music business has always led the way for creative industries in the digital world. That leadership continues today as the music industry’s digital revolution continues through new phases, driven by the consumer’s desire for access to, rather than ownership of, music. It is a reflection of how much we have adapted that digital revenues today are, for the first time, on a par with physical.
“The headline statistics of 2014 speak for themselves, with overall revenues still largely flat, down by 0.4 per cent. Music companies are charting a path to sustainable year-on-year growth. That path was never going to be straight, but we are making great strides along it, embracing new models, licensing, investing and improving consumer choice,” Moore added.
The report also revealed that vinyl continued to be a growing distribution medium, with with revenues increasing 54.7 per cent and now accounting for 2 per cent of global revenues. – Staff Writers
