The IFPI releases it’s official Global Music Report, and streaming is king.
This morning the International Federation of the Phonographic Industry (IFPI) released their global music report for 2018 and some very good news for the music industry as a whole. That’s right, global revenue is up by just under 10% and there are no prizes for guessing what’s driving it.
Streaming revenue grew by a whopping 34% and accounted for just under 50% of all revenue globally. The main reason for the growth in this area seems to be due to an increase in paying subscribers (up 32.9%).
The report came with even more astounding news. The UK has overtaken Germany as the world’s third largest music market, growing by 3.1% last year alone. The main reason for this is Germany’s lethargic transition from physical consumption to digital. Conversely, the UK’s widespread (albeit fairly tumultuous) acceptance of streaming as the primary mode of consumption, appears to have paid off for the industry.
Additionally, Drake was named the biggest artist in 2018 and ‘The Greatest Showman’ soundtrack was named the best performing album of the year. Camilla Cambello’s Havana was also named the best performing single of the year.
In essence, this report confirms what we have been arguing since day 1. Streaming is the future. Whilst it’s revenue grew by 10%, digital download revenue shrunk by 21.2% and physical revenue shrunk another 10% globally.
So if you weren’t already convinced, in the immortal words of Bob Dylan, you better start swimming…