Next Big Sound (a/o June 18th):
But what about the rest of the music industry? That's the issue, though at least digital formats are still growing. According to an estimate released Monday by global trade group IFPI, digital formats are now powering a $5.2 billion industry, thanks to an 8 percent lift in 2011.
The ingredients in this stew are things like album downloads, Spotify subscriptions, and (yes) ringtones. Granted, it's single-digit growth, but the IFPI challenged the prevailing wisdom that digital formats are headed towards plateau. Specifically, the group noted that digital formats gained 5 percent heading into 2011, though it may take a few years to understand the broader trend.
That said, there were some eye-opening details in this report. For starters, digital formats now account for half of total revenues in two markets: the US (52 percent), and South Korea (53 percent), though both have seen unceremonious plunges in physical (ie, CD) sales.
2011 may also be the year that subscription formats finally took off, though to use an over-used Valley cliche, these are 'still early days'. Specifically, the IFPI pointed to a 65 percent year-over-year surge to 13.4 million total subscribers worldwide, with Spotify, Aspiro, and Rhapsody contributing a healthy chunk to that total.
But for all the trumpeting and cheerleading, the IFPI is also stumping for anti-piracy. It's a picture that includes cord-snipping laws like HADOPI in France, and failed bills like SOPA in the US. "Any complacency now... would be a great mistake," warned IFPI CEO Frances Moore. "Our digital business is progressing in spite of the environment in which it operates, not because of it. We need legislation from governments with coordinated measures that deal with piracy effectively and in all its forms. We also need more cooperation from online intermediaries such as search engines and advertisers to support the legal digital music business."
Paradox Monday, January 23, 2012
And in the same IFPI Report in Sweden,
Spotify accounted for 84% of the digital revenue in 2011, Itunes is just 16%.
Also FYI:
VEVO CEO stated that VEVO will generate $300 million in 2012.
Misty Tuesday, January 24, 2012
How can you download music from Spotify? I have it, but I can only stream it and some songs aren't even available in the US!!
Don't do it Tuesday, January 24, 2012
You shouldn't download songs from Spotify, because the artists won't see any money from it. Go to their iTunes or Bandcamp page and dowload from there.
Be part of the solution, not part of the problem.
Paradox Monday, January 23, 2012
The biggest news to come out of digital music news in 2011 is
MUVE MUSIC with over 500,000 paid subscribers in just a little over 6 months by bundling it with a prepaid phone service (unlimited music downloads + talk, text, data). Not bad for a company with only 5 million users.
It's revolutionary!!! especially when the like of Verizon (over 100 million users) and AT&% (over 100 million users) do the same thing.
Dalton Priddy Tuesday, January 24, 2012
If Digital Music business is $5.2 billion, then illegal downloads are around $3.0 billion. wow, how do you compete with free.
@estesc Tuesday, January 24, 2012
That's encouraging!
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