Is This the Bottom? Digital Finally Surpasses Physical Worldwide…

For the first time ever, digital revenues has surpassed physical revenues worldwide.

It’s finally happened. In 2015, the global music market reached a major milestone as digital consumption surpassed physical, making it the primary revenue stream for the recorded music industry. Of the total global music revenue in 2015, digital accounted for 45%, overtaking physical’s 39% share.

more info and charts on official site

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Despite the explosion in music consumption, artists and record labels are not receiving a fair remuneration, with ad-supported platforms one culprit. In the report, IFPI Chief Executive Frances Moore spoke out on what she coined the ‘value gap’:

”The value gap is the biggest constraint to revenue growth for artists, record labels and all music rights holders. Change is needed – and it is to policy makers that the music sector looks to effect change”.

IFPI says that the ‘value gap’ comes from services like YouTube that are able to ”circumvent the normal rules that apply to music licensing”. The IFPI goes on to say that these services ”conclude licenses at artificially low rates, claiming protection from so-called ‘safe harbor’ rules that were introduced in the early days of the internet”.

full post on Digitalmusicnews

#Market #Streaming #Sales #Youtube