GLOBAL MUSIC BIZ UP 8.1% IN 2017

The global recorded-music industry grew for the third year in a row in 2017, reaching revenues of $17.3b—an 8.1% increase—thanks to streaming, which has now become the single largest revenue source, representing 38.4% of the market.

According to the IFPI's Global Music Report 2018, year-over-year streaming growth was up 41.4% last year, with the total number of paid subscribers worldwide hitting 176m. Total digital income accounted for more than half of all revenue at 54% after growing 19.1%. Physical revenue was down 5.4% to account for a 30% marketshare while downloads declined 20.5% to 16%. In 2016, global recorded revenues increased by 5.9% with streaming revenue rising 60.4%.

The numbers were revealed at a press conference in London today where UMG exec Adam Granite, Sony’s Dennis Kooker and Stu Bergen from Warner shared perspectives on the state of play. While celebrating the growth, IFPI Chief Exec Frances Moore (pictured) warned “The race is far from won,” with the music business still two thirds (68.4%) the size it was back in ’99. The ‘value gap’ is an ongoing problem that needs to be fixed, said Moore, with 1,300m users for video streaming sites contributing $856m in revenues, while 272m paid and freemium users of audio streaming sites contribute over $5.5m.

In terms of highest revenue generating regions, China has entered the Top 10 for the first time with the market up 35.3%. That growth was no doubt fuelled by the fact that last year, Universal was the final major label to sign an exclusive distribution deal with streaming giant Tencent in the region.

Latin America was up 17.7%, North America up 12.8% while Europe grew 4.3%—a slower rate than 2016’s 9.1% rise thanks to a 7.4% decline in physical, with revenue from digital downloads dipping 21%.

Granite said growth will continue if music companies focus on driving innovation in the way artists connect with fans, while maintaining a sustainable ecosystem in emerging markets.

Bergen pointed to new music, new markets and new technology, while Kooker highlighted paid streaming as the fuel for optimism.

Top 10 global recording artists 2017

1. Ed Sheeran
2. Drake
3. Taylor Swift
4. Kendrick Lamar
5. Eminem
6. Bruno Mars
7. The Weeknd
8. Imagine Dragons
9. Linkin Park
10. The Chainsmokers

Top 10 music markets 2017

1. USA
2. Japan
3. Germany
4. UK
5. France
6. South Korea
7. Canada
8. Australia
9. Brazil
10. China