IFPI releases annual Digital Music Report
London, 18 March 2014 - Figures published by music industry trade body IFPI indicate that global recorded music revenues fell by 3.9% to $15bn in 2013, despite income from subscription streaming services like Spotify and Deezer rising sharply.
The IFPI blamed a sharp drop in Japan for 2013’s global decline, noting the impact of a 16.7% dip in sales in a country that accounts for more than a fifth of global revenues. If Japan is factored out, global sales dropped by just 0.1% in 2013.
Overall, physical music sales of CDs and vinyl fell by 11.7% to $7.73bn, while digital revenues rose 4.3% to $5.87bn. Within the latter sector, sales of downloads fell by 2.1% to $3.93bn while subscription streaming income rose 51% to $1.11bn.
The report strongly backs streaming, pointing to overall growth in 2013 in the US and the five largest European music markets: the UK, France, Germany, Italy and the Netherlands.
“In 2011, there were eight million paying subscribers to subscription services — today there are 28 million. Ad-supported and subscription streams are rising in most markets, helping grow overall digital revenues for record companies and artists," said IFPI chief executive Frances Moore.
Strong digital growth was recorded in emerging markets, including Argentina (where digital revenues were up 69% in 2013), Peru (up 149%) and South Africa (up 107%).
On piracy, the report calls for more action including ISPs blocking access to piracy sites; search engines doing more to demote infringing sites in their search results; and for codes of conduct to ensure big brands’ online advertisements aren’t placed on such sites.