The International Federation of the Phonographic Industry (IFPI) published their annual Digital Music Report in March, demonstrating how the music industry is adapting to the digital world. Among other trends, it confirms the rise of subscription services and their contribution to the overall digital revenue stream.
The U.S. market made $5.9 billion this past year with 39% of that being revenues from digital sales. The overall growth of the U.S. market was 4.3%. Streaming revenues alone rose a remarkable 51.3% with 28 million subscribers worldwide. However, digital downloads still represented two thirds of the total digital revenue.
Other highlights from the Digital Music Report include:
There’s also a list of the most popular artists and songs of the year, compiled from every digital platform. The top spot went to One Direction, a talentless boy band from the UK.
In addition to their annual report IFPI puts out other reports like the Recording Industry in Numbers, which statistically describes consumer behavior, market trends (specifically how digital revenue the largest source of income for artists), and digital service innovations. According to IFPI CEO Frances Moore, the Chinese market is ready to be tapped and “there is a pioneering spirit among record companies as they expand into these new territories.”
The IFPI is a non-profit organization based in Switzerland and represents the interests of the recording industry worldwide. Some of their work includes working towards better legal protection for music markets, growing performance rights revenues, mitigating music piracy, and providing market research to the industry.
With the rapid changes taking place in today's music industry, you can’t be too informed about the evolving landscape of revenue streams, demographics, new potential markets, and mediums to release your music. Check these reports out, they’re worth your time.