IFPI: India Ranks 15th, Global Recorded Music Revenues Grow 9.7%

IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises some 1,300 major and independent companies in almost 60 countries. It also has affiliated industry national groups in 57 countries. IFPI’s mission is to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate. The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth, according to IFPI, the organization that represents the recorded music industry worldwide. Figures released today in IFPI’s Global Music Report 2019 show total revenues for 2018 were US$19.1 billion driven by an uptake in paid subscription streaming (+ 32.9%, Y-o-Y). The Asia and Australasia region (+11.7%) grew to become the second-largest region for combined physical and digital revenue, with especially strong growth in South Korea (+17.9%) and India (+24.5%).

• Total streaming revenues grew 34.0% to nearly half of all revenue, driven by paid streaming

• Latin America shows highest regional growth for fourth consecutive year

• Asia and Australasia second-largest region for physical and digital formats combined

Read IFPI’s ‘State of the Industry Report’ here

The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth, according to IFPI, the organization that represents the recorded music industry worldwide. Figures released today in IFPI’s Global Music Report 2019 show total revenues for 2018 were US$19.1 billion.

Streaming revenue grew by 34.0% and accounted for almost half (47%) of global revenue, driven by a 32.9% increase in paid subscription streaming. There were 255 million users of paid streaming services at the end of 2018, with paid streaming accounting for 37% of total recorded music revenue. Growth in streaming more than offset a 10.1% decline in physical revenue and a 21.2% decline in download revenue.

Record company-driven investment, innovation and partnerships are supporting artists to connect with fans around the world whilst also yielding dynamic growth in high-potential markets. For the fourth consecutive year, Latin America was the fastest-growing region (+16.8%) with Brazil (+15.4%) and Mexico (+14.7%) growing strongly. The Asia and Australasia region (+11.7%) grew to become the second-largest region for combined physical and digital revenue, with especially strong growth in South Korea (+17.9%).

Frances Moore, chief executive of IFPI, said: “Last year represented the fourth consecutive year of growth, driven by great music from incredible artists in partnership with talented, passionate people in record companies around the world.

“Record companies continue their investment in artists, people and innovation both in established markets and developing regions that are increasingly benefitting from being part of today’s global music landscape.

“As music markets continue to develop and evolve, it is imperative that the appropriate legal and business infrastructure is in place to ensure that music is fairly valued, and that the revenues are returned to rights holders to support the next cycle of development.

“We continue to work for the respect and recognition of music copyright around the world, and for the resolution of the value gap by establishing a level playing field for negotiating a fair deal for those who create music. Above all, we are working to ensure that music continues its exciting, global journey.”

India is positioned to break into the Top 10 Music Markets by 2022, India is now ranked 15th in the world!

As a fast-growing music economy with an average of +21.3% growth over the past three years, India’s recorded music industry revenues increased to $156 Mn in CY18 (INR 1068 Cr.), well positioning India to break into the top 10 music markets by 2022 (India is now ranked 15^th in the world, per IFPI metrics). Mirroring the global growth in streaming revenues. India has seen increasing traffic towards legitimate sources of music (audio OTT platforms, video streaming platforms, etc.) driven by an increase in smartphone penetration and low data rates. The penetration of music services to tier II and tier III cities, along with an increasing subscriber base of internet users suggests that the scope for growth for audio streaming consumption (and therefore, revenues) remains large – as emphasized by the increasing competition in the audio OTT industry.

The recorded music industry in India has played a key role in ensuring that the burgeoning demand for music is met, through large investments in talent, content creation, marketing and promotion, and active licensing policies to online and broadcasting platforms. Further, investments in innovative products such as Carvaan and services such as brand advertising solutions, highlight the continual efforts made by recorded music companies to provide better consumer experience through the popularity of recorded music. These efforts have seen a marked growth in the revenues from physical formats (+21.2%) and synchronization revenues (+24.6%).

Speaking at the launch of the report, Mr. Blaise Fernandes, President and CEO, IMI said:

“Talent, Technology and Tenacity have been the key drivers of the recorded music industry in India, through the ever changing technological and legislative landscapes. Content creators and owners in India are connecting with audiences globally, through the ubiquity of the internet and the reach of online platforms. Supported by the investments, resources of the recorded industry and market intelligence of IMI, the recorded music industry in India is on the cusp of crossing boundaries within India and outside - providing much encouragement to content creators, both established and emerging. It is imperative, therefore, that the investment cycles by rights holders are sustained through fair valuation of music and voluntary licensing norms. The music will keep spinning, and audiences will keep engaging, it is now more important than ever to narrow the value gap and lack of fair value, which is necessary to keep the party going.”