London, 28th April 2010
IFPI today publishes the Recording Industry in Numbers 2010 (RIN), providing a comprehensive picture of key trends of today's music business. Highlights include:
• Global recorded music revenues declined 7% in 2009
• Some key markets saw a return to growth
• Digital sales grew strongly in many markets• Piracy continued to erode legitimate music sales worldwide
Commenting on the new edition of the RIN, IFPI chairman and CEO John Kennedy says:
"The global music business is continuing to fight its corner, investing in talent and developing new business models despite the problems of a market rigged by piracy. Music companies are investing over US$5 billion a year in developing and marketingartists, licensing hundreds of services and adapting their distribution channels to meet changing consumer demand.
"Global music sales in 2009 fell by 7%. This is disappointing, but amid the decline there are some very positive points. No fewer than thirteen countries saw music sales grow in 2009, including important markets such as Australia, Brazil, South Korea, Sweden and the UK. Digital sales insome of those markets rose at very encouraging rates, reflecting the new opportunities of online and mobile channels. South Korea and Sweden in particular saw striking returns to growth, showing how an improved legal environment can help impact on legitimate music sales.
"Reducing piracy is critical if these improvements are going to translate into long term recovery for our global business. Heretoo there are encouraging developments. France and the UK, in particular, are leading the way with new legislation. There is a huge battle ahead, but also signs that the tide of opinion among governments is shifting as piracy's impact on the economy and jobs becomes clear. There is no doubt in my mind that growth is within reach for the music business - it depends, to a large extent, on howquickly governments can act to deal with piracy and, in doing so, tackle a market distortion that overshadows not just music but all the creative industries."
Highlights of the RIN 2010
Global recorded music sales
Global recorded music sales for 2009 show a mixed picture. Trade revenues to record companies fell by 7.2% to US$17 billion, with the world's two biggest markets, the US and Japan,making up 80% of the decline. The worldwide fall in revenues outside the US and Japan in 2009 was 3.2%. Physical sales fell by 12.7% globally.
There are key areas of market growth, however. Digital music sales rose by 9.2% to US$4.3 billion, more than ten times the digital market value in 2004. Digital channels now account for 25.3% of all trade revenues to record companies. In the US, digital salesaccount for nearly half - 43% - of the recorded music market. More than 30 countries saw double-digit growth rates in digital sales, and 17 markets, including Argentina, Australia, Austria, Denmark, Finland, Singapore, Sweden and UK, saw digital sales grow by more than 40%.
There was a return to growth in 13 markets, including Australia, Mexico, South Korea, Sweden and the UK. Improving legalenvironments in the last two to three years in South Korea and Sweden - combined with the launch of popular legitimate services - helped both countries to market growth rates of 10% in 2009.
New licensing models progress
There are now more than 12 million tracks available from over 400 legal music services worldwide. They range from download stores such as Amazon or iTunes to video streaming sitessuch as YouTube and audio streaming services such as Deezer and Spotify. Some ISPs, such as Sky, TDC and Telia, have already partnered with record labels or digital retailers to deliver legitimate music services.
A recent study by Ovum in the UK suggests that if ISPs themselves offer music services, they could boost their revenues. The UK study, published in March 2010, suggested that ISPs...