Income outside of traditional music sales up 6.6% in 2009
Film, TV, advertising and games sync licensing income rises 19.6% year-on-year.
2009 total recording industry revenues were £1,122.3m, up 2.3% on 2008.
UK record companies continue to innovate and diversify as new figures released today by The BPI show that ‘secondary revenues’ – income generated outside of CD sales and income from digital music services – have grown for the third year in succession to £193.5m in 2009, a 6.6% increase on 2008.
Secondary revenues in 2009 represented 20.8% of total industry revenues, up 1% on 2008. Total recorded music industry revenues in 2009 were £1,122.3m, an increase of 2.3% from 2008’s final tally of £1,097.2m.
BPI Chief Executive Geoff Taylor said: “UK record companies have responded to tough market conditions by innovating in the digital world and developing new revenue streams from recorded music, beyond their traditional base of CD sales and the encouraging growth in digital a la carte, subscription and streaming services.
“Music companies continue to face an enormous challenge from illegal downloading, but are responding positively by transforming themselves for the future, identifying new opportunities to generate returns from the massive investments they make - hundreds of millions of pounds per year - in UK talent. British music is being licensed to films, TV, and especially games like never before. And innovative, inclusive record deals in which labels forge a broader partnership with artists, encompassing proceeds from concerts and merchandise also grew significantly year-on-year.
“The growth in labels’ secondary income in 2009, combined with the strong increases in digital revenue already announced, illustrates the outstanding potential of British recorded music if illegal filesharing can be tackled.”
Artist related income from multiple-rights deals – so called ‘360 degree’ deals – including concerts, merchandising and sales of music direct from artist and label websites, remained a significant source of revenue during 2009. More than £58.6m was earned from partnerships with artists, an increase of 16.7% on the previous year.
Broadcasting and public performance licensing income of £72.1m from PPL accounted for more than a third of secondary revenues in 2009. Synchronisation deals from the use of music in film, TV, advertising and games grew by 19.6% to £25.2m in total, whilst premiums also generated income of £1.8m.
ENDS
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