Labels tune into growth as new services lift off
9 April 2013 2:04am
MUSIC streaming services and growth in emerging markets were responsible for the first rise in music sales for 13 years in 2012, while physical sales and spending in western nations declined.
Figures from the International Federation of the Phonographic Industry (IFPI), the recording industry’s global trade body, yesterday revealed that subscription and advertising-supported music services such as Spotify were the key drivers of growth in 2012.
Performance rights sales, which include licensing for radio, TV music channels and nightclubs, also grew, as did sales of rights for use in adverts and films – known as synchronisation deals.
The rise of these non-traditional formats made up for declining CD sales for the first time, with global recorded music revenues up 0.2 per cent to $16.48bn (£10.8bn). The figures will come as a boost to artists and record labels, showing that after years of declines, new services are finally offsetting slumping CD sales. The last time total revenues rose, in 1999, physical sales peaked, hitting $27.6bn.
Last year, digital, performance rights and synchronisation revenues made up 43 per cent of income, in stark contrast to 13 years previously, when non-physical sales were negligible. Subscription-based and advertising-supported services accounted for a fifth of digital sales, up from nine per cent in 2009.
The IFPI said that economies such as China and India, where revenues increased by nine per cent and 21.6 per cent respectively, made up for declines in the US and Europe. Sales in the UK fell 6.1 per cent last year, although it overtook Germany to become the world’s third-biggest market behind Japan and the US.
Despite the rise of non-traditional revenue streams, CDs and downloads remain dominant. Physical sales still account for 57 per cent of all revenues, while downloads are 71 per cent of all digital sales.
2012 also saw a resurgence in vinyl sales, which rose 50 per cent to 12m – their highest level since 2000.
In other news
Former Thomas Cook boss Harriet Green has said she'll donate a third of her forthcoming share award to a charity [Read more]
Update: Firefighters have put out a blaze at a Berkeley Homes building site on Arsenal Way, Woolwich this afternoon. [Read more]
Greek prime minister Alexis Tsipras has given the country's markets a welcome lift, confirming speculation that [Read more]
The EU and Switzerland have signed a deal to stop EU residents holding undeclared income in Swiss bank accounts. [Read more]
A random combination of words and characters are automatically shutting down iPhone users' devices. [Read more]
London will play host to a record number of cyclists in August as the Prudential Ride London Freecycle event expands [Read more]
Commuters using London's Fenchurch Street could face a travel headache going home tonight, with operators confirming [Read more]
Eight candidates are vying for the role of deputy Labour leader in a crowded race alongside the high-profile leadership [Read more]
Between 1997 and 2013, people living in just four regions in the UK saw their disposable income increase when [Read more]
Prime Minister David Cameron has had work done. Five years in Coalition has taken its toll on the youthful fresh-face [Read more]
Swiss police are questioning 10 Fifa officials over the controversial award of the 2018 and 2022 World Cups to [Read more]
Dutch banking giant ING last night cut its stake in NN, an insurance and investment management company.
Update: Nearly 150 flights have been cancelled and 32 diverted to other European cities after a power outage shut [Read more]
A fresh investigation into migrant worker conditions in Qatar landed BBC reporters in prison recently. It is another [Read more]
The Bank of England will not back down on tough regulation, top official and ex-Barclays boss Martin Taylor said [Read more]
Perhaps the most enjoyable outcome of the General Election is the abuse now being heaped on the metropolitan liberal [Read more]
Private company SpaceX has received certified approval from the US to send military and spy satellites into space. [Read more]
Essex commuters will be the first to benefit from London’s Crossrail train service, with fare cuts of up to [Read more]
Boohoo’s finance chief Neil Catto was yesterday granted 1.6m share options worth £400,000 after his previous [Read more]
The FCA is considering whether to introduce new rules around PPI complaints following last year's ruling on the [Read more]