For the first time ever, streaming services have garnered more revenue than physical formats. A new report suggests that the music industry’s profits are up for the first time in more than 20 years.
This is mainly due to the revenue garnered from streaming services such as Spotify, Apple Music and even You Tube which gathers revenue from advertising.
Digital revenue accounted for 45% of the industry’s takings in 2015, according to the new report. Physical formats, on the other hand like CDs and vinyl records made up just 39% – and were beaten into second place for the first time in history.
The report was undertaken by the International Federation of the Phonographic Industry (IFPI). They found that the music industry as a whole turned over an estimated €13bn last year, with streaming rising to €2bn of that, alongside digital sales of €5.7bn.
Subscriptions are one area that has been excelling in recent years , having grown 66% in a year to reach a value of €55.6m in 2015.
The Chief Executive of the IFPI Frances Moore said that what they have seen is an “industry that has adapted to the digital age and emerged stronger and smarter”, after two decades of strife and falling sales.
Photo Credit: Scott Beale