Global streaming revenues grew by 34% to $8.9m in 2018, accounting for 47% of the global total according to the International Federation of the Phonographic Industry (IFPI). Paid streaming grew by 32.9% last year and accounted for 37% of total revenues (around $7.1bn).
The IFPI annual Global Music Report, which is published today reveals that strong growth in streaming revenues more than made up for the continued decline in sales of CDs and music downloads. The total revenue for 2018 was $19.1bn up from $17.4bn in 2017.
The figure includes revenue from streaming, sales, performance rights and synchronisation income – but not the publishing or live-music sectors. It’s the fourth consecutive year of growth for recorded music globally.
According to the IFPI, there were 255 million users of paid streaming subscriptions at the end of 2018. That’s up from 176 million at the end of 2017 – 44.9% growth.
Meanwhile, physical music sales fell by 10.1% to $4.7bn, which means that since 2001 (when they were $23.3bn) the physical music market has lost nearly 80% of its value. The IFPI noted that within the physical, sales of vinyl grew by 6% in 2018.
Sales of downloads and other non-streaming digital revenues fell by 21.2% in 2018, to $2.3bn.
Frances Moore, chief executive of IFPI, said: “Last year represented the fourth consecutive year of growth, driven by great music from incredible artists in partnership with talented, passionate people in record companies around the world.
“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.
Global recorded music revenue growth was predominantly driven by a 32.9% rise in paid streaming, that now accounts for 37% of total revenue worldwide. Find out more in the #GlobalMusicReport https://t.co/ZvNxTne15C pic.twitter.com/zcoNAdDESq
— IFPI (@IFPI_org) April 2, 2019
“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.”
