The IFPI (International Federation of the Phonographic Industry) released their annual music industry report earlier this week, only this time -unlike a number of years prior- there was an overall sense of good news for the music community.
Global recorded music revenues were up in 2012!
Industry revenues grew by 0.3%, a number increased by digital downloads, music subscriptions, and other channels. And while 0.3% may not seem insignificant at first glance, it marks the first year of music industry growth since 1999.
…1999!!! This means the last year the industry grew, Cher’s ‘Believe’ was the chart-topper of the year. (No wonder the industry started tanking).
The IFPI have reported that music industry revenues grew by $100m from 2011 to 2012, and as Frances Moore CEO of the IFPI declares, “We’re on a path to recovery”.
Here are some of the other highlights from the report:
– Digital revenues increased by an estimated 9 per cent to US$5.6 billion in 2012, now accounting for around 34 per cent of global industry revenues.
– Download sales increased in volume by 12 per cent globally in 2012 and represent around 70 per cent of overall digital music revenues
-The number of people paying to use subscription services leapt 44 per cent in 2012 to 20 million. Subscription revenues are expected to account for more than 10 per cent of digital revenues for the first time in 2012.
– Digital music consumption has become mainstream, as shown by consumer research by Ipsos MediaCT across nine markets in four continents. Two-thirds of internet users (62%) have used a licensed digital music service in the past six months. Among younger consumers (aged 16-24) this figure jumps to 81 per cent.
To read more on the global music industry growth, read the full IFPI report.
What does this mean for your music career?
It means for the first time in 14 years there’s hope that the damaged music industry can turn itself around. A stronger industry means more support for artists committed to making music their career.
It’s encouraging to see that digital platforms and new technologies are finding their way in an unchartered marketplace. It means if we keep heading in the right direction, and the music industry continues to rebound, we could get back to a place where young artists view music as a viable career path.
It means keep working hard. Keep writing great songs. Only now, do so with more hope that as the industry bounces back you’ll have firmer ground to stand upon.