The global recorded music market grew by 5.9% in 2016, the highest rate since IFPI began tracking the market in 1997, according to the IFPI Global Music Report 2017, released today. Total revenues for 2016 were US$15.7 billion.
At the end of 2016 there were 112 million users of paid music streaming subscriptions driving year-on-year streaming revenue growth of 60.4%. Digital income last year accounted for half the global recorded music industry’s annual revenue for the first time. Growth in streaming more than offset a 20.5% decline in downloads and a 7.6% decline in physical revenue.
Streaming is helping drive growth in developing music markets, with China (+20.3%), India (+26.2%) and Mexico (+23.6%) seeing strong revenue growth.
- Global revenue growth: +5.9%
- Digital share of global revenues: 50%
- Digital revenue growth: +17.7%
- Growth in streaming revenues: +60.4%
- Physical revenues: -7.6%
- Download revenue: -20.5%
But say the IFPI, the 'value gap' (the growing mismatch between the value that user upload services, such as YouTube, extract from music, and the revenue returned to those who are creating and investing in music) is the biggest threat to the future sustainability of the music industry.
IFPI Global Music Report 2017 http://www.ifpi.org/downloads/GMR2017.pdf