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IFPI Global Music Report 2017: Record Music Revenues Grew 5.9% in 2016 Thanks to Streaming

April 25th, 2017

09 IFPI 2017 ReportThe global recorded music market grew by 5.9 per cent in 2016, the highest rate since IFPI began tracking the market in 1997, according to the IFPI Global Music Report 2017, released today.  Total revenues for 2016 were $15.7 billion (all figures in U.S. dollars).

Of note for the Canadian music industry is that Canada has passed Australia to become the sixth largest market in the world for recorded music. In 2016, Canada’s total recorded music revenue was $374.6 million, which is a 14.8 per cent year-over-year increase that outpaces the global average. This growth is mostly driven by streaming, which saw revenue more than double from $49.82 million in 2015 to $127.8 million in 2016. As has been the global trend, paid subscriptions generated the majority of streaming revenues in Canada, accounting for $94.45 million in 2016, compared to $15.72 million from ad-supported audio streaming and $17.59 million from video streams. As well, synchronization revenue accounted for $7.8 million, up 32 per cent over 2015.

Globally, at the end of 2016 there were 112 million users of paid music streaming subscriptions driving year-on-year streaming revenue growth of 60.4 per cent. Digital income last year accounted for half the global recorded music industry’s annual revenue for the first time. Growth in streaming offset a 20.5 per cent decline in downloads and a 7.6 per cent decline in physical revenue.

Streaming is also helping drive growth in developing music markets, with China (+20.3 per cent), India (+26.2 per cent) and Mexico (+23.6 per cent) seeing strong revenue growth.

The industry is now working towards a return to sustainable growth following a 15-year period during which revenues dropped by nearly 40 per cent. The IFPI says success requires resolution of the market distortion known as the “value gap” – the growing mismatch between the value that user upload services, such as YouTube, extract from music and the revenue returned to those who create and invest in music.

“The industry’s growth follows years of investment and innovation by music companies in an effort to drive a robust and dynamic digital music market,” says Frances Moore, CEO of the IFPI. “Music’s potential is limitless, but for this growth to become sustainable – for investment in artists to be maintained and for the market to continue to evolve and develop – more must be done to safeguard the value of music and to reward creativity.

“The whole music community is uniting in its effort to campaign for a legislative fix to the value gap and we are calling on policymakers to do this.  For music to thrive in a digital world, there must be a fair digital marketplace.”

The global industry is also continuing to work to tackle the illegal distribution of music that it says undermines the recovering legitimate market. IFPI and its national groups identified 19.2 million URLs as hosting infringing content in 2016 and issued 339 million requests to Google requiring it to ‘delist’ infringing sites.

For more information, go to www.ifpi.org.

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