The IFPI released their 2017 Global Music Report earlier this week. The latest music report featured enough positive growth indicators to put the music industry in a good mood.
Global recorded music revenues grew by 5.9% in 2016, with revenues totalling US$15.7 billion. This growth was largely driven by streaming, with Digital income now accounting for 50% of global music revenues.
Whereas downloads had a 20.5% decline revenue and physical revenues were down 7.6%, streaming revenues grew 60.4%.
Of most interest was the IFPI’s coverage of the “value gap”, a metric that describes the mismatch between the value that user upload services (YouTube) extract from music, and the revenue returned to those who created or invested in the music.
The graph above shows that for subscription-based services, 212m users corresponds to US$3.9 billion in revenue, whereas for user uploaded content, 900m users only generate US$533 million in revenue.
Global music societies and government organisations have recognised the need for legislative adjustments to safe harbour laws.
For more coverage on the 2017 Global Music Report, check out the articles below.
Breaking down the Global Music Report findings, the mass adoption of streaming services such as Spotify, Amazon and Apple Music in both established and emerging markets is – as expected – the main driver behind the industry’s sustained upturn.
Piracy also remains an enormous problem: IFPI and related groups 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 report says.
In 2015, music streaming resulted in the first increase in global revenues since 1999, by a not-terrible $500 million. As Martin Mills, the chairman of the Beggars Group family of independent labels, put it in today’s report: “Streaming continues to open up new markets for our artists that just weren’t there before for us — Russia, Brazil, Mexico. In some cases it is creating a recorded music market where there simply wasn’t one.”
In Deutschland ist im Digitalbereich noch großes Potential nach oben: Wie der BVMI-Bericht “Musikindustrie in Zahlen” zeigt, ist Deutschland ein Late Adopter was digitale Trends angeht. So machen psychische Produkte mit 62,1 Prozent noch einen Großteil des Gesamtumsatzes aus – 989 Millionen Euro erzielten die Verkäufe von CDs, Vinyl, DVDs und Musikkassetten im Jahr 2016 – während bespielsweise in Schweden bereits 2015 nur 19 Prozent mit CD’s und Co. erwirtschaftet wurden.