Music industry revenue grows almost 10% despite decline in physical and download formats
Streaming helped boost music industry revenues for a fourth consecutive year by almost 10% in 2018, despite the continued decline of physical and download formats.
Streaming music on platforms like Spotify, Apple Music, Deezer and Tidal grew by 34% in 2018 compared to the previous year, and accounted for almost half (47%) of global music revenue, according to a new report by the International music industry body the IFPI.
The continued growth in streaming, which reached 255 million users using paid subscription services last year, offset a 10.1% decline in profits physical and a steep 21.1% in downloads.
Despite that, the IFPI reports also revealed the vinyl revival continues across the world, with sales up by 6%. The format now has a 3.6% share of the overall recorded music market.
The best-selling albums of 2018 globally are:
1. The Greatest Showman - Motion Picture Cast Recording (3.5 million)
2. BTS - Love Yourself: Answer (2.7 million)
3. BTS - Love Yourself: Tear (2.3 million)
4. A Star Is Born - Motion Picture Cast Recording (1.9 million)
5. Johnny Hallyday - Mon Pays C'est L'amour (1.7 million)
6. Ed Sheeran - Divide (1.3 million)
7. Queen - Bohemian Rhapsody (1.2 million)
8. Pink - Beautiful Trauma (1.2 million)
9. Eminem - Kamikaze (1 million)
10. Mamma Mia: Here We Go Again - Motion Picture Cast Recording (900,000)
The IFPI's report also revealed that Latin America is the fastest-growing region for music revenues, up 16.8% year-on-year, with Brazil (+15.4%) and Mexico (+14.7%) growing strongest.
MORE: The world's biggest songs of 2018 revealed
Frances Moore, chief executive of IFPI, said: “Record companies continue their investment in artists, people and innovation both in established markets and developing regions that are increasingly benefitting from being part of today’s global music landscape.
"As music markets continue to develop and evolve, it is imperative that the appropriate legal and business infrastructure is in place to ensure that music is fairly valued, and that the revenues are returned to rights holders to support the next cycle of development.
"We continue to work for the respect and recognition of music copyright around the world, and for the resolution of the value gap by establishing a level playing field for negotiating a fair deal for those who create music. Above all, we are working to ensure that music continues its exciting, global journey.”
Read the IFPI's 2019 Global Music Report here.
Article image: Rex/Shutterstock
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NN
Nu No
I'm confused... is streaming taken into account here as it is on the IFPI Songs? Because mediatraffic doesn't count the whole world and based on official reports says The Greatest Snowman OST sold 5.434.000 equivalent during 2018. Usually IFPI numbers are higher than mediatraffic ones but this time this is not the case. In fact they have 4 albums with higher sales. (check it out here: http://www.mediatraffic.de/year-end-albums.htm). Maybe IFPI stopped including streaming on albums and put it only on songs as they counted twice for chart purposes and are really the same sale (a track sells 10 times and it also counts as 1 album for the album it belongs to and the same happens with streaming). When will they change that and also stop counting streams and downloads twice for the charts? We can clearly see that in this case some albums sold almost the double on mediatraffic due to the chart policy of counting them twice and actually end up selling only half of that. The market is quite different than what it seems because of that. There are still album artists and singles artists (and a few that are successful in both markets) but that policy of counting them twice doesn't allow us to see that so clearly.
Czarina Mae Peligro
BTS take 2 & 3 spot ... TRUE KINGS :)
BleeUK
I know Streaming is so popular, but you can't beat Physical (Vinyl/CD or Cassettes) as that is still the most important music choice there is/high pure Quality , firstly Vinyl, than Cassette than CD. and after that things/quality are missed
Rob Parkinson
For an album then it makes sense but it's too costly to produce anything physical for the sake of 1 track ( the single) so that's what makes streaming so successful, you dont have to pay all the extra involved in the production where everybody is adding their bit of profit from the record company, the plastic packaging, the printers, the transport costs to the outlet that is selling the product.
BleeUK
Streaming songs, are easy, and fast-track as more songs are produced/shown for today hits on streaming and download sites, Album are very important and true music fans will buy with Physicals, more than streams, and it a shame Streaming has is so popular with songs or tracks for the charts (as you buy music you love for a track/album than free play or continue units though streams points), bring back the day from 70s-90s for all singles to buy on CD/vinyl on all popular and major song selections, (i know there a few song today hits is available on Vinyl and CD but in a high price)
NN
Nu No
Sure but downloading songs cost as much as streaming. Streaming does have too much weight on the charts. Also streamed and dowload songs shoudn't count for both charts (albums and singles) at the same time. You buy a physical album and it counts as 1 sale for the album (some albums do have 15 or 20 tracks) but if people download 20 times the single song from 1 album and it counts as 2 albums sold plus all those 20 tracks sold for the singles chart. And if someone listen to that song 1500 it counts as 10 singles sold and 1 album sold for the charts.If I do love a song I may alone listen to it 1500 times during a year. This is nonsense as if I buy the single (physical) it only counts as 1 single sale for charts and costs me way more money.
BleeUK
I agree about the cost, about Physicals for the Singles, but people still making Singles CD and Vinyl I know it only a few Selection to it which is amazing, Streaming is Quicker and Faster to get your tracks to you listening experience and low cost, but it don't match up with the real thing as Streams & download lose Quality sound unless u get you get High-Res or Flac Formats i don't think audio streams, or any video streams should count to the UK or world charts (as it really Free play even when you pay a streaming company in my mind, Unless in the future they do download one time streaming tracks only work for a track fair play), as the major and special Reason for charts in my heart Should be only CD, Vinyl or Paid Material for a track and artist download/future download extra plans *from Streaming one track download pay from Deezer/Spotify etc