Trade income from digital music increased by a quarter (24.7%) to £281.6m during 2011, with digital growth now offsetting two-thirds of the decline in income from sales of physical music product.
Total digital music income – earnings from online downloads, subscriptions, ad-supported services and mobile – now accounts for more than a third (35.4%) of UK recorded music turnover, up from 27.4% in 2010.
Geoff Taylor, BPI Chief Executive, said, “It is highly encouraging for the long-term prospects of the industry that the pace of digital growth continues to accelerate. British labels are supporting a wide range of innovative music services and music fans are embracing digital like never before.
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Revenue from digital albums grew strongly in 2011 and is now almost at the same level as digital single tracks. Digital albums generated £117.8m in trade income – up 43.2% on 2010’s year-end result of £82.2m. Earnings from digital single tracks rose 11.3% to £120.5m in 2011, compared to £108.3m in 2010.
The income from subscription digital music services also grew by an impressive 47.5% during 2011, with services such as Spotify Premium, Napster, We7 and eMusic generating significant trade income of £24.0m. Advertising supported, free digital services – including Spotify, YouTube, We7 and last.fm – earned £10.7m for UK record companies in 2011, dipping 1.4% year-on-year.
Total trade income from physical formats – albums, singles and music video - fell by 14.1% overall in 2011, with revenues dropping for the eighth year in a row to £513.8m from 2010’s total of £598.0m. The 2011 market for physical albums dropped 14.4% to £484.7m compared to £566.4m the year before."
Source: Press release from the BPI, 16th February 2012
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