IFPI digital report: annual music download revenues top $5bn for first time
Record labels benefitted from an 8% growth in digital music revenues in 2011, according to the IFPI’s annual report – with legally downloadable tracks and albums available in more countries than ever before.
The global trade body’s Digital Music Report 2012 shows that worldwide digital music revenues hit an estimated US$5.2 billion in the year – up from the $4.8 billion recorded in 2010.
The 8% climb compares favourably to year-on-year growth of 5% in 2010 – and represents the first time the figure has increased since IFPI started measuring digital revenues in 2004.
Meanwhile, major international music services are now available in 58 countries, say IFPI figures, up from 23 in January 2011.
Single track downloads were up by 11% volume in 2011, whilst digital albums were up 24% .
Digital channels account for an estimated 32 per cent of record company revenues globally, up from 29 per cent in 2010, according to the report.
Some markets now see more than half of their revenues derive from digital channels, including the US (52%), South Korea (53%) and China (71%).
IFPI estimates that 3.6 billion downloads were purchased globally in 2011, an increase of 17 per cent (combining singles and album downloads).
Commenting on the report, Frances Moore, CEO of IFPI, said: “As we enter 2012, there are good reasons for optimism in the world of digital music. Legal services with expanding audiences have reached across the globe and consumer choice has been revolutionised. Meanwhile momentum is building in the fight against piracy as governments and a growing circle of intermediaries engage with our industry.
“Any complacency now, however, would be a great mistake. Our digital business is progressing in spite of the environment in which it operates, not because of it. In 2012 the momentum needs to build further. We need legislation from governments with coordinated measures that deal with piracy effectively and in all its forms. We also need more cooperation from online intermediaries such as search engines and advertisers to support the legal digital music business.”
Source: Music Week
