As music continues to shape and color my daily life, what I’m most impressed with is the music industry’s ability to take on the changes and challenges that come its way head on. It makes me proud to work in music, and seeing the innovation and determination that have spawned from the incessant industry developments (and the knowledge at the same time that new developments and twists inevitably lie ahead) inspires me in ways beyond just my professional life.
In that vein, it’s important to look back and review the events of the past year, so there’s always a great buzz in the air when the IFPI Digital Music Report makes its appearance towards the end of Q1 each year. This year’s report is, as always, chock-full of great information, including stats and figures paired with special reports to contextualize the numbers. After combing through it with my orange highlighter, here are the key takeaways of the state of digital music in 2013.
GIVE ME THE NUMBERS
Overall recorded music revenues grew in Europe and Latin America, stabilized in the United States and experienced a sharp 16.7% decline in Japan, bringing global revenues down 3.9% to an estimated US$15 billion.
Not including Japan, global music revenues were only down 0.1%.
Digital revenues worldwide grew by 4.3% in 2013 to US$5.9 billion.
Digital now accounts for 39% of total industry global revenues.
Revenues from music subscription services grew by 51.3%, exceeding US$1 billion:
- Subscription and ad-supported streaming services now account for 27% of global digital revenues
- The number of paying subscribers to subscription services increased by 40% to 28 million
- Revenues from ad-supported streaming services increased by 17.6%, with a large focus on music videos
Digital downloads experienced a slight decline of 2.1%:
- Still a key revenue stream, downloads account for 67% of global digital revenues
- The album format is still coveted, and digital album sales remain on an upward curve
Performance rights income more than doubled in 2013, reaching US$1.1 billion globally, an estimated 19% rise. Our Collections services can help you tap into some of that. If you’re interested in signing up, reach out to your client rep!
Synchronization income declined by 3.4%, now accounting for 2.1% of total industry revenue. Our dedicated Sync Licensing team is constantly on the lookout for great opportunities, and we’d love to include more of your music in our pitches to supervisors. Interested? Let your client rep know.
While still on the decline, physical music sales continue to keep a majority share in many major markets, accounting for 51.4% of all global revenues (down from 56.1% in 2012).
Vinyl sales, though still niche, have increased substantially in the US (up 32% in 2013) and in the UK (up 101%!). Record Store Day‘s around the corner, people!
While the industry did experience some decline, it’s encouraging to see digital revenues growing overall, with streaming continuing to establish itself as a viable source of income. The report dives deeper into the impressive growth of the Scandinavian markets, all a few years ahead of the rest of the world in terms of streaming. It’s worth a read, particularly the special report on Sweden, a country which grew from US$144.8 million to US$194.2 million in just three years, with an increased share of digital going from 8% to a whopping 70%, of which subscription services account for 94%. Whew!