LONDON (CelebrityAccess MediaWire) — According to the record label trade association, the British Phonographic Institute, things are looking up for record labels in the UK as the shift to digital sales continues. According to figures released by the BPI, record company revenues outside direct sales of music increased by 13.8% to £121.6 million in 2007, from £106.9m in 2006. These additional revenues now account for 11.4% of record companies' domestic income.
Figures released today by British record companies' body the BPI show that record company revenues outside direct sales of music increased by 13.8% to £121.6 million in 2007, from £106.9m in 2006. These additional revenue streams, generated from licensing, and multiple-rights income now account for 11.4% of record companies' domestic income.
Synchronisation licence income, from the use of music in advertisements, films and games continued to grow strongly in 2007, where revenues grew by 20.1%. There was also a 14.8% increase in record label income from PPL: broadcast and public performance licensing.
Digital sales have been strong as well, and digital formats now account for around 85% of all Top-20 singles sales. More than 200 million downloads have now been sold in the UK since the launch of the first mainstream stores in early 2004. In total, digital formats now account for 8.6% of all UK record company sales income.
BPI Chief Executive Geoff Taylor said: "As consumption patterns change, music companies are finding new ways to recoup the huge investments they make in music. They are using new technology to find new audiences and offer consumers more choice. Today's record business is unrecognisable to that of five years ago. Labels have rapidly evolved into digitally literate businesses that generate significant revenues through licensing." – CelebrityAccess Staff Writers