Music industry slumps despite online growth

 
Oliver Smith
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MUSIC subscription services’ revenues grew to over $1bn (£603m) worldwide in 2013, but the dramatic growth from the likes of Spotify and Rdio was not enough to support the music industry which contracted 3.9 per cent overall to $15bn.

Japan led the slump in global music revenues with a 16.7 per cent drop in sales to $3bn due to the slow growth of online music services and a rapid drop off in physical music sales, according to figures from the International Federation of the Phonographic Industry (IFPI).

“Even accounting for the difficult situation in Japan, the global recording industry is in a positive phase of its development,” said IFPI chief executive Frances Moore yesterday.

Global physical music sales of CDs and vinyl fell by 11.7 per cent to $7.73bn, while total digital revenues, including subscription services, grew 4.3 per cent to $5.87bn.

“Streaming and subscription services are thriving. Digital music is moving into a clearly identifiable new phase as record companies, having licensed services across the world, now start to tap the enormous potential of emerging markets,” added Moore.­­­­­