Digital music revenues up 24.7% to £281.6m – now a third of record industry trade income
Stronger growth in digital albums (up 43.2%) and premium subscriptions (up 47.5%)
Modest 3.4% decline in total recorded music trade revenues as physical falls 14.1%
16th February 2012 – The 2011 digital income of British record companies grew even faster than in 2010, as new trade figures released today by the BPI confirmed that UK recording industry revenues were resilient last year despite challenging economic conditions.
Trade income from digital music increased by a quarter (24.7%) to £281.6m during 2011, with digital growth now offsetting two-thirds of the decline in income from sales of physical music product.
Total digital music income – earnings from online downloads, subscriptions, ad-supported services and mobile – now accounts for more than a third (35.4%) of UK recorded music turnover, up from 27.4% in 2010.
Geoff Taylor, BPI Chief Executive, said, “It is highly encouraging for the long-term prospects of the industry that the pace of digital growth continues to accelerate. British labels are supporting a wide range of innovative music services and music fans are embracing digital like never before.
“The record industry has continued to invest heavily in discovering and supporting outstanding British talent, which has helped sustain revenues in the face of difficult economic circumstances.”
Revenue from digital albums grew strongly in 2011 and is now almost at the same level as digital single tracks. Digital albums generated £117.8m in trade income – up 43.2% on 2010’s year-end result of £82.2m. Earnings from digital single tracks rose 11.3% to £120.5m in 2011, compared to £108.3m in 2010.
The income from subscription digital music services also grew by an impressive 47.5% during 2011, with services such as Spotify Premium, Napster, We7 and eMusic generating significant trade income of £24.0m. Advertising supported, free digital services – including Spotify, YouTube, We7 and last.fm – earned £10.7m for UK record companies in 2011, dipping 1.4% year-on-year.
Total trade income from physical formats – albums, singles and music video - fell by 14.1% overall in 2011, with revenues dropping for the eighth year in a row to £513.8m from 2010’s total of £598.0m. The 2011 market for physical albums dropped 14.4% to £484.7m compared to £566.4m the year before.
Industry revenues from physical music videos on DVD and Blu-Ray were down by only 3.3%, accounting for £25.8m, down on 2010’s tally of £26.7m. Income from physical singles dwindled by 33.1% to £3.3m overall, with the market characterised by X-Factor releases, charitable singles and vinyl. Mobile income from master ringtones and ringback tunes fell 30.6% to £2.5m during 2011.
The full press release is downloadable here.
NOTES FOR EDITORS
These figures represent record industry revenues from physical and digital music. All figures exclude VAT and retailer margin, and in the case of physical product are net of retailer returns. They exclude income from broadcasting and public performance licensing from PPL and earnings from synchronisation deals, premiums and ‘360 degree’ multiple-rights deals with artists.
About BPI
The BPI is the representative voice of the UK recorded music business. The BPI is a trade organisation funded by its members - which include hundreds of independent music companies and the UK’s four major record labels. The BPI’s members account for approximately 90% of all recorded music sold in the UK, and globally the UK's recorded music market is the fourth biggest.
The BPI also organises the annual BRIT Awards show as well as the Classical BRIT Awards show. The organising company BRIT Awards Limited, is a fully owned subsidiary of the BPI. Substantial proceeds from both shows go to the BRIT Trust, the charitable arm of the BPI that has donated almost £15m to charitable causes nationwide, since its foundation in 1989.
For further information, please contact Adam Liversage on 0780 117 9032 or adam@bpi.co.uk.