Global music revenues undermined by market drop in Japan

Global music trade revenues fell by 3.9% to US$15bn in 2013, neatly contrasting with a worldwide growth in digital music revenues of 4.3%.

According to the annual IFPI global report, subscription and streaming services helped drive trade revenue growth in most major music markets in 2013. The US in particular saw its market stabilise on the back of a 0.8% growth in revenues.

Europe has returned to growth after 12 years, with all top five markets – France, Germany, Italy, Netherlands and the UK – seeing an increase in revenues.  Latin America saw a 1.4 per cent growth, with strong digital revenues helping offset declining physical sales.

The global decline is no doubt influenced by a staggering 16.7% drop in revenues in Japan; a market which accounts for more than a fifth of global income.   Japan, says the report, “remains a market in transition, with legacy mobile products and physical format sales only now starting to decline, while streaming and subscription services are still establishing themselves.”

Excluding Japan, the overall global recorded music market was broadly flat, declining in value by 0.1%.

IFPI Chief Exceutive Frances Moore says, “Even accounting for the difficult situation in Japan, the global recording industry is in a positive phase of its development.  Revenues in most major markets have returned to growth.  Streaming and subscription services are thriving.  Consumers have a wider choice than ever before between different models and services. And digital music is moving into a clearly identifiable new phase as record companies, having licensed services across the world, now start to tap the enormous potential of emerging markets.”