Music Industry revenues have seen a gradual increase for the last three consecutive years, rising 8.1 % in 2017 with total revenues at US$ 17.3 billion globally, according to the Global Music Report 2018 of Ifpi (International Federation of the Phonographic Industry). However this upturn is mostly on the back of the phenomenal growth of music streaming services like Spotify, Apple Music, Pandora and others, which grew 41.1 % globally.
Digital revenue grew 19.1 % and accounted for 54 % of total global revenues. Revenue from physical media (CDs and Vinyl) sales and digital downloads have both continued to decline, with physical media sales registering lower decline at 5.4 % compared to digital downloads which declined 20.5 %.
In India the music industry beat expectations by registering a 27 % growth in revenues to 725.6 crore in 2017 from 570.7 crore in 2016, again driven by the growth in streaming services which grew 37.26 % and accounted for 91 % of total Indian recorded music industry revenues for the year.
In addition to that positive outcome there are a few more reasons to cheer about besides the growth in digital music. There is tremendous prospect for association of music and branding; and in the area of live music and music festivals. Also the establishment of two new music conferences, All About Music now in its second edition and the recently concluded Music Inc, says a lot about the revival and consolidation taking place within the industry.
Underlying this whole growth story is the revolution created by the ubiquitous mobile phone. The tremendous increase in mobile penetration and sharp drop in data charges has led to a huge increase in consumption of music and videos that is proving to be a boon for the music business. However, piracy continues to be a major concern as most people in the country access music and videos illegally.
As stakeholders, innovators and music makers come together to explore the way forward, we are cautiously positive that this resurgence will grow in strength in the coming years and the over a decade and a half long decline is behind us for good.