The IFPI, the organization representing the interests of the global recorded music industry, has released its 2019 Global Industry Report. It indicates that global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth. The IFPI's figures show worldwide total revenues for 2018 were US$19.1 billion. Canada's recorded music market, however, appears to have stagnated.
Streaming revenue grew by 34% and accounted for almost half (47%) of global revenue, driven by a 32.9% increase in paid subscription streaming. There were 255 million users of paid streaming services at the end of 2018 accounting for 37% of total recorded music revenue. Growth in streaming more than offset a 10.1% decline in physical revenue and a 21.2% decline in download revenue.
The report also revealed that Canada dropped two spots to number nine on the list of largest music markets after being number seven on the IFPI's report last year. The top 10 music markets in 2018 were: 1) United States, 2) Japan, 3) United Kingdom, 4) Germany, 5) France, 6) South Korea, 7) China, 8) Australia, 9) Canada, 10) Brazil.
And while many large music markets saw significant growth in revenues in 2018, Canada's revenues remained flat, with only 0.5% growth. The United States, by comparison, saw a 15% growth thanks to sigficant gains in paid streaming.
For the fourth consecutive year, Latin America was the fastest-growing region (+16.8%) with Brazil (+15.4%) and Mexico (+14.7%) growing strongly. The Asia and Australasia region (+11.7%) grew to become the second-largest region for combined physical and digital revenue, with especially strong growth in South Korea (+17.9%).
Frances Moore, chief executive of IFPI, said: “Last year represented the fourth consecutive year of growth, driven by great music from incredible artists in partnership with talented, passionate people in record companies around the world.
“Record companies continue their investment in artists, people and innovation both in established markets and developing regions that are increasingly benefitting from being part of today’s global music landscape.
“As music markets continue to develop and evolve, it is imperative that the appropriate legal and business infrastructure is in place to ensure that music is fairly valued, and that the revenues are returned to rights holders to support the next cycle of development.
“We continue to work for the respect and recognition of music copyright around the world, and for the resolution of the value gap by establishing a level playing field for negotiating a fair deal for those who create music. Above all, we are working to ensure that music continues its exciting, global journey.”
Key figures for 2018
Global revenue growth: +9.7%
Streaming revenue is 46.8% of global total
Growth in paid streaming revenues: +32.9%
Physical revenues: -10.1%
Download revenue: -21.2%
To read the read the ‘State of the Industry’ report, go HERE.