Wednesday, 19 March 2014

Global music streaming revenues exceeded $1 billion in 2013

"The digital market has continued to diversify with revenues from subscription services, such as Deezer and Spotify, growing by 51.3 per cent, passing the US$1 billion mark for the first time. Global revenues from subscription and advertising-supported streams now account for 27 per cent of digital revenues, up from 14 per cent in 2011.
It is estimated that more than 28 million people worldwide now pay for a music subscription, up from 20 million in 2012 and just eight million in 2010.
Music subscription, which has helped transform Sweden and Norway in recent years, is now having similar positive impact in Denmark and Netherlands.
Record companies continue to license many new services, with Beats Music and iTunes Radio recently launching in the US. The industry hopes and expects these services to spread quickly around the world. There are some 450 licensed services internationally, including global services such as Spotify, which expanded into 38 new markets in 2013, Deezer, Google Play and regional services such as Muve in the US and Asia's KKBOX.
Digital downloads remain a key revenue stream, accounting for a substantial two-thirds of digital revenues (67 per cent). Downloads are helping to drive digital growth in some developing markets, including Hong Kong, the Philippines, Slovakia and South Africa. Revenues from downloads globally fell slightly by 2.1 per cent in value, the decline being offset by increases in streaming and subscription revenue.
Physical format sales still account for a major proportion of industry revenues in many major markets. They account for more than half (51.4%) of all global revenues, compared to 56 per cent in 2012. Although global physical sales value declined by 11.7 per cent in 2013, major markets including Germany, Italy, the UK and the US saw a slow-down in the rate of physical decline. France's physical sales grew by an estimated 0.8 per cent, helped by a local repertoire boom.
While vinyl sales account for only a small fraction of the overall industry revenues, they have seen an increase in recent years in some key markets. In the US, vinyl sales increased by 32 per cent in 2013 (Nielsen Soundscan), and in the UK, they increased by 101 per cent in 2013 (BPI)."

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