Streaming drives music revenue
July 1, 2020 - Music streaming accounted for more than half of the $20.2 billion recorded music revenue for the first time last year, driving the industry back to prosperity in the digital era.
In 2019, the global recorded music market grew by 8.2%, its fifth consecutive year of growth since 2014, when revenue was at a 20-year low of $14.0 billion, according to the International Federation of the Phonographic Industry (IFPI).
The latest IFPI Global Music Report, released in May, shows that music streaming revenue accounted for 56.4% of the overall recorded music revenue -- a 22.9% increase to $11.4 billion.
The growth was predominantly driven by paid streaming services -- once regarded with deep suspicion by both the artists and the labels -- with the number of paid streaming accounts rising to 341 million by the end of 2019 and associated revenue increasing by 24.1%.
The world’s top ten markets all demonstrated growth, except for Japan. There was particularly strong growth in paid streaming with all top 10 markets experiencing double-digit growth in paid streaming revenues.
For the fifth consecutive year, recorded-music revenue grew fastest in Latin America, increasing by 18.9%. Yet the region still only accounts for four per cent of the global business -- Latin America has just 45 million music subscribers out of a population of 650 million.