IFPI Digital Music Report 2o13: Global Recorded Music Revenues Climb For The First Time Since 2013
One of the statistics that stood out to me in this piece was that “performance rights income increased in value by an estimated 9.2% in 2012 and now accounts for around 6% of overall industry revenues, up from 3% in 2007.” This increase is directly related to the growth of digital streaming platforms both into new markets (the piece states that streaming platforms are in 100 countries compared to 23 countries the year before) as well as the increase in users (paid and unpaid).
Pandora, Rdio, Mog, Spotify, iTunes Radio, etc. all pay a micro-penny statutory rate to SoundExchange and a negotiated royalty rate (either based on percentage of revenue or usage-based) to ASCAP/BMI/SESAC for digital public performance. They pay similarily to foreign PROs as well.
This increase in performace revenue resulted in $990,000,000 in music industry revenue (6% of the $16.5 BILLION global revenue cited in the piece). These monies go back to songwriters and publishers.
Excerpt from the piece, “IFPI Digital Music Report 2o13: Global Recorded Music Revenues Climb For The First Time Since 2013” by Richard Smirke for BillboardBiz.com:
It’s been a long time coming, but the global recorded music industry is finally “well on the road to recovery,” declared Frances Moore, chief executive, IFPI, at the London launch of IFPI’s annual Digital Music Report.
In 2012, strong growth in digital sales and services helped fuel a 0.3% rise in global recorded music revenues – the first year of industry growth since 1999, says IFPI. Global digital revenues climbed 9%, with major licensed digital services and stores now operating in over 100 markets, as compared to 23 countries only twelve months ago.
The Digital Music Report, which was unveiled today (Feb. 26) at IFPI’s London offices, placed the total trade value of Global recorded music industry revenues in 2012 at $16.5 billion, up from $16.2 billion the previous year.
Total digital revenues for 2012 are estimated at $5.6 billion, up 9% on 2011’s figure of $5.2 billion. Digital now accounts for more than a third of total industry revenues (34%) with digital revenues making up more than 50% of all recorded music income in Norway, Sweden and the U.S.
While the 0.3% rise in total trade value is undoubtedly significant and provides strong reason for cheer, it is worth placing in context. In 1999, the last year that the recorded music industry posted a growth in revenue, its global total trade value stood at $27.8 billion (adjusted to the 2012 exchange rate). In 2005, it’s stood at $22.9 billion, according to IFPI figures.
Read complete article here.