Note: This was originally posted in the numbers thread, since it's kinda slow right now and some folks here do like to read about industry etc. (but don't like to go to the numbers thread), I'm reposting it here.
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London, 26th February 2013

The global recorded music industry is on a path to recovery, fuelled by licensed digital music services and rapid expansion into new markets internationally. Recorded music is also helping drive a broader digital economy, according to IFPI's annual Digital Music Report.

Global recorded music industry revenues rose by an estimated 0.3 per cent to US$16.5 billion in 2012, the first year of industry growth since 1999. Digital revenues saw accelerating growth for the second year running, up 9 per cent, with most major digital revenue streams - downloads, subscription and advertising-supported - on the rise.

The digital music business is globalising fast, as smartphones and new licensed services span new and emerging markets. In January 2011, the major international download and subscription services were present in 23 markets. Today, they are in more than 100.

Frances Moore, chief executive of IFPI said: "It is hard to remember a year for the recording industry that has begun with such a palpable buzz in the air. These are hard-won successes for an industry that has innovated, battled and transformed itself over a decade. They show how the music industry has adapted to the internet world, learned how to meet the needs of consumers and monetised the digital marketplace."

Music is an engine of the digital world

The flow of new music springs from investment by record companies. This in turn is helping drive a wider digital economy, ranging from social networks to devices, broadcasters and live performance. The recording industry annually invests 26 per cent of its trade revenues (US$4.5 billion) in developing and marketing talent.

Music is helping power social media platforms. For example, nine in 10 of the most watched videos of all time on YouTube are music videos, led by PSY's Gangnam Style which has been viewed more than 1.2 billion times. Nine in 10 of the most liked people on Facebook are artists. Seven of the top 10 most followed people on Twitter are artists.

Global Album Best Sellers in 2012


Global Singles Best Sellers in 2012


Addressing barriers to growth

The report highlights where progress was made in addressing barriers to growth in 2012, but also where much more needs to be done. Notably:

*** Advertising is a major source of funding for unlicensed music services worldwide. Major brands should no longer consider it acceptable to help fund illegal music sites that tarnish their own reputation, as well as helping rig the music market. There have been several well-publicised cases where companies have removed advertising from pirate websites (for example Levi's).

*** Search engines are the first port of call for many internet users looking for music online. The music industry wants search engines to prioritise search results relating to licensed services, which would be socially responsible and is feasible technically. However, searches for the names of popular artists followed by the term "mp3" still return a large number of results for illegal sources on the first page. In August 2012, Google announced it would take into account the number of valid copyright notices it receives when returning search results. That was a welcome step in principle but unfortunately has not been translated into results. A "report card" issued by IFPI's sister US organisation, RIAA, has found Google's actions have showed no "demonstrable impact".

*** Internet service providers (ISPs) have had a demonstrable effect on levels of copyright infringement on the internet when required to act. For example, in five European countries where ISPs were required by courts to block access to The Pirate Bay (Netherlands, Belgium, Finland, Italy and UK), usage levels fell 69 per cent during 2012 (ComScore/Nielsen). By contrast, in countries without the block, traffic rose by 45 per cent over the same period.


Note: For the complete synopsis (including report highlights) of the report, go to www.ifpi.org/content/section_resources/dmr2013.html

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