IFPI: Minds Digital Value Gap
According to global trade body IFPI’s Global Music Report, the UK is once again the world’s No.3 music market, having overtaken Germany. Strap yourself in for some serious stats!
Growth of 0.6% in UK music revenues to a total of $1.354 billion, enough to overtake the German market, which was down 0.3% to $1.310bn and slips to No.4. Overall global music revenue grew by 3.2% in 2015.
The United States remains the world’s No.1 music market with revenues of just under $5bn, up 1% on 2014. Japan remains at No.2, with revenues of $2.447bn, up 3%. Japan is the biggest global market for physical music sales.
The rest of the Top 10 global markets list is made up of France (No.5), Australia (No.6), Canada (No.7), South Korea (No.8), Italy (No.9) and Brazil (No.10).
Other key insights from the report include a 10.2% rise in digital revenues to $6.7 billion, with a 45.2% increase in streaming revenue more than offsetting the decline in downloads and physical formats. Streaming revenues reached $2.9 billion and grew four fold in the five-year period up to 2015. There are now 68 million people paying for a music subscription, up from 41m in 2014.
However, it isn’t all rosy in the walled garden of digital growth- the IFPI also raised concerns over how the explosion in music consumption is not being matched in terms of remuneration to artists and record labels, creating a “value gap” between consumption and remuneration.
The report states that the value gap has been created by digital services such as YouTube, which, according to the IFPI report, are able to circumvent normal music licensing by claiming protection from safe harbour rules- a hot topic in the industry at present.
IFPI Chief Executive Frances Moore said: “After two decades of almost uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere and digital revenues overtaking income from physical formats for the first time. They reflect an industry that has adapted to the digital age and emerged stronger and smarter”.
Moore continued: “This should be great news for music creators, investors and consumers. But there is good reason why the celebrations are muted: it is simply that the revenues, vital in funding future investment, are not being fairly returned to rights holders. The message is clear and it comes from a united music community: the value gap is the biggest constraint to revenue growth for artists, record labels and all music rights holders. Change is needed – and it is to policy makers that the music sector looks to effect change”.
Find out more and download the report here.
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