Digital was more than 70% of Italy’s 2019 revenue, but industry is already suffering from coronavirus

Italy has been dominating headlines as a center of the western world’s fight against the coronavirus pandemic. The country is expected to take major economic hits as a result of the outbreak, and the music industry will almost certain reverse the positive growth it saw last year.

FIMI reported that its 2019 music revenue rose 8% to reach €247.8 million. The annual results saw digital with a growing presence, securing more than 70% of the country’s total revenue. Total streaming revenue grew from €95.49 million in 2018 to €121.01 million in 2019. Subscriptions were responsible for more than half, reaching €81.11 million in revenue.

Physical sales were on the downturn in 2019, falling from €61.95 million to €53.4 million. That decline will likely be even bigger for 2020, as this segment has been hit especially hard by quarantining. FIMI said that in the first three weeks of March, CD and vinyl sales plummeted 60% year-over-year. Streaming music has also dropped in response to stay-at-home orders, but the organization did not provide specifics.

“[Our] numbers for 2019 were really encouraging with an increase number of Italians shifting to the subscription at a fast rate,” FIMI CEO Enzo Mazza told Music Business Worldwide. “The current situation will probably hit the physical market very hard, and we hope streaming can remain at least flat for the next few months.”