Thank streaming: Global music sales surged 8.1 percent

Tencent

Tencent

The streaming sector grew 39 percent -about $2.1 billion -year-over-year to $7.4 billion, accounting for 43 percent of all industry revenues, according to MIDiA Research data. This is exclusively credited to the continued adoption of streaming services as the method du jour of consuming musical content. Streaming now accounts for 38.4% of total recorded music revenue and its growth has more than offset a 5.4% decline in physical revenue and a 20.5% decline in download revenue. Total revenues for 2017 were $17.3 billion.

That was up $1.9bn on 2016's $4.7bn tally from streaming.

The resurgence is nearly entirely due to the rapid growth of streaming services including Spotify, Deezer and Apple Music, which have given the industry a badly needed new source of revenue. The sale of physical formats, primarily CDs, fell 5.4% to $5.2bn to account for 30%.

We'll have more analysis of the IFPI numbers up on MBW later today.


Perhaps the most striking territorial development, though, was the appearance of China in the Top 10 music markets for the first time - it's moved 14-12-10 in the last few years and now looks set to deliver its frequently predicted revenue boost for the biz. Internationally, Latin American revenues grew by 17.7% and Asia and Australasia by 5.4%. It was the third consecutive year of growth following 15 years of decline. That's versus US$25.2-billion in 1999.

"Through technology music is transcending borders, including geographic borders like never before", added Universal Music's Granite, who said that building sustainable success required music companies remaining "focused on artists and artist development, but that we also continue to drive innovation in constructive way, in a public policy environment that enables fair compensation for creators".

Stu Bergen, the chief executive of Warner Music's global business, said his tour of New Zealand was so successful that an estimated one in 19 of the country's population saw him perform, breaking a record set by Dire Straits 32 years ago. Though details aren't clear at this stage, The Wall Street Journal reports the public offering could take place in the United States.

Pointing to fast-growing emerging markets like China, Africa, India and the Middle East, Granite went to say that "the path to reaching these 4 billion people is now illuminated by smart phone penetration and global streaming services".

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