IFPI global report shows streaming growth in 2013

ifpi 03 61 percent use servicesThe Internation Federation of Phonographic Industries (IFPI) released its summary of digital music usage and revenue for 2013. The IFPI is a global advocacy, lobbying, and industry-tracking organization headquartered in Europe, affiliating many national organization around the world are affiliated under its umbrella, including the Recording Industry Association of America (RIAA), the leading record-music industry voice in the U.S.

Throughout the IFPI paper (which can be viewed and downloaded here, or a press release here), “digital” is a blanket term referring to streaming, music subscriptions, and song/album downloads.

As with the RIAA report issued this week, the IFPI document shows vigorous growth of streaming and subscription music, bolstering a general industry picture of declining physical sales.

ifpi 01 streaming stats

“It is now clear that music streaming and subscription is a mainstream model for our business,” according to Frances Moore, Chief Executive of IFPI.

All in globally, subscription and streaming revenue is counted as $1-billion. (The recent RIAA report, using different methodologies, counted $1.4-billion for the U.S.

Online music services are credited with attracting users away from unauthorized file-sharing sites. “The subscription model is leading to more payment for music by consumers, many of whom appear to be shifting from pirate services to a licensed music environment that pays artists and rights holders,” the IFPI report states.

There are 450 licensed online music services around the world.

Comparing music subscriptions with music downloads, the shift to the former from the latter is transpiring at different rates in different countries:

ifpi 02 subs and downloads by country

Emerging markets, especially in South America, showed digital growth in 2013.

“A key theme of today’s report is the huge potential of emerging markets following the expansion of licensed digital services in the last three years. Many smaller emerging markets are starting to post significant increases in revenues as digital channels open new opportunities in countries that had a weak physical retail infrastructure. Markets posting significant increases in digital revenue included Argentina (+69%), Peru (+149%), South Africa (+107%) and Venezuela (+85%).”

The uplifting spin provided by the IFPI is that digital music (streaming services plus downloads) is credited with revitalizing the music industry. “Recorded music revenues in most major markets have returned to growth,” Frances Moore states.



Brad Hill