After taking a breather in 2012, the music industry this year is confronted with less encouraging figures. During the launch of “Digital Music Report” in London Last year, the Association IFPI announced that 15.1 billion dollars were generated (10.86 billion euros) worldwide. This represents a decline of 3.9 %. The main reason for this is the Japanese market. If you would you ignore the result of Japan, you would get a fairly stable balance sheet. Nevertheless, the music market would come up with a global decline of 0.1 %, says IFPI chairman Frances Moore said. In Japan, a very diverse environment, which relates to label activities and licensing, still is the main concern. Max Hole, CEO of Universal Music Group International, is convinced that the current situation of the market participants points out the need for new sales and distribution opportunities even more.
“Nevertheless we are still on the road to recovery”, said Moore. Especially the digital music market prevails reason to be content, which with a turnover of 5.9 billion U.S. dollars (plus 4.3 %) lead to 39 % of the total result. The optimism of the previous year, where the industry was able to report a growth of 16.5 billion U.S. dollars in sales, for the first time since 1999, is still present. “Most major music markets have returned to growth and Streaming and subscription models are successful “, said Moore.
Above all, the U.S. markets have stabilized and also in Europe for the first time in 13 years an increase to be announced. The Austrian native music industry association also announced a positive outlook: In Austria, the deficit in the previous year was 2 % (150 million euros turnover), but according to the President of the Association Hannes Eder, “a plus for 2014, is a realistic goal”. The international association also underlined that streaming services are likely to have a significant proportion. “It is clear that music streaming and subscription services are a mainstream model for our business,” said Moore. Currently there are 28 million paying users of services worldwide using services such as as Spotify or Deezer.
In this regard, something also has to happen in Japan. The Japanese market that is responsible for almost a fifth of the global turnover, compared to the U.S. market has not yet developed so far in this regard. The digital business could recover during the year though, new offerings and market participants are still in the starting blocks.
Digital music services in the previous year have for the tenth time in a row been responsible for more sales and an increase of 4.3 %. Using Streaming and associated subscription models more than one billion U.S. dollars will be achieved, which represents an increase of 51.3 %. Despite a slight decline, according to Moore, the download area still remains the central pillar . The physical sales contributed 51.4 % of total revenues, in 2012 it was still 56.1 %.
Basically, it is important to further raise awareness of legal, digital offerings, says Moore. Because it still is the most serious threat to the music industry and piracy remains. According to a study by comScore / Nielsen, 26 % of Internet users consume music illegally. Moore stated however, that these figures relate only to desktop PCs and laptops, mobile devices such as tablets and smartphones are not yet taken into account. “The more we need to counteract “.