Digital music is now responsible for 50% of all music industry revenue.
Revenue from physical sales of CDs and music videos has continued to decline over time and is down upwards of 5% last year. Industry revenue overall has increased almost 2%, which is the first increase in several years and could mark the beginning of a more profitable music industry.
Digital music sales reaching this amount of total revenue is a very notable milestone, many people thought that CDs and physical copies would continue to dominate the music industry for years to come – this clearly indicates that CDs are on the way out and digital downloads and streaming are on the up.
Streaming revenue also saw a significant change, with an increase of over 40%! Services such as Spotify certainly contributed to the overall revenue and the digital revenue increase in 2013. A lot of people are now turning to streaming services and digital music downloads for more convenient listening compared to physically going out to buy singles and albums.
Daft Punk, Eminem, and One Direction are among the top 5 most streamed artists of 2013, each having released new albums last year with varying degrees of success and popularity. One Direction were the first artists to receive the new IFPI Global Recording Artists award in 2013, receiving the award for their huge success since appearing on the reality show X Factor.
Geoff Taylor, BPI chief executive, had this to say about the music industry news:
“With digital increasingly becoming its key source of revenue, Britain’s music industry is fit and ready to seize the global opportunities it offers.”
Increased digital music sales can only be positive for the consumers, artists, and the music industry as a whole. Allowing people to purchase music whenever they want via the internet gives an entirely different method of sale to the artists and producers and can provide new opportunities for anyone involved in the industry.