Here are the numbers right out of the report.
- Digital revenues now account for 45 per cent of total revenues, compared to 39 per cent for physical sales.
- There was a 10.2 per cent rise in digital revenues to US$ 6.7 billion, with a 45.2 per cent increase in streaming revenue more than offsetting the decline in downloads and physical formats.
- Total industry revenues grew 3.2 per cent to US$ 15.0 billion, leading to the industry's first significant year-on-year growth in nearly two decades. Digital revenues now account for more than half the recorded music market in 19 markets.
- Streaming remains the industry's fastest-growing revenue source. Revenues increased 45.2 per cent to US$ 2.9 billion and, over the five year period up to 2015, have grown more than four-fold.
- Streaming now accounts for 43 per cent of digital revenues and is close to overtaking downloads (45 per cent) to become the industry's primary digital revenue stream.
- Premium subscription services have seen a dramatic expansion in recent years with an estimated 68 million people now paying a music subscription. This figure is up from 41 million in 2014 and just eight million when data was first compiled in 2010.
- Downloads remain a significant offering, but now account for just 20 per cent of industry revenues. Income was down 10.5 per cent to US$ 3.0 billion - a higher rate of decline than in 2014 (- 8.2 per cent). Full album downloads are still a major part of the music fans' experience and were worth US$1.4 billion. This is higher than the level of sales in 2010 (US $983 million) and 2011 (US $1.3 billion).
- Performance rights revenue grew. Revenue generated through the use of recorded music by broadcasters and public venues increased 4.4 per cent to US$2.1 billion and remains one of the most consistent growing revenue sources. This revenue stream now accounts for 14 per cent of the industry's overall global revenue, up from 10 per cent in 2011.
- Revenues from physical formats declined, albeit at a slower rate than in previous years, falling by 4.5 per cent compared to 8.5 per cent in 2014 and 10.6 per cent in 2013. The sector still accounts for 39 per cent of overall global income and remains the format of choice for consumers in a number of major markets worldwide including Japan (75 per cent), Germany (60 per cent), and France (42 per cent).
That's a lot of data to take in, but the big takeaways are that the total industry revenue remains flat at $15 billion, despite streaming's growth, and paid subscriptions are taking off, at 68 million worldwide as compared to 41 million the year before.
There's more than meets the eye here though, which I'll address in an upcoming post.