Digital and streaming dominate as music revenue grows at record pace, but executives warn of complacency

How we consume music today through online streaming means a big chunk of the global music industry revenue is now coming from digital sales, according to a new report.

Recorded music grossed US$17.3 billion in 2017 with digital music – until last year roughly equal to physical sales worldwide – amounting to 54 per cent of the revenue, the International Federation of the Phonographic Industry (IFPI) said in its annual report.

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The growth marks the third consecutive year of expansion and the fastest pace since the IFPI began compiling data, said the the body’s chief executive Frances Moore.

But the industry is still only worth about two thirds of its value in the 1990s before the rise of the internet and the scourge of pirated music sent the business into a 15-year slump, Moore said.

The resurgence is almost entirely due to the rapid growth of streaming services including Spotify, Deezer and Apple Music, which have given the industry a badly needed new source of revenue.

The report said that 176 million people around the world paid for streaming subscriptions by the end of last year, with 64 million joining throughout the year – and there is plenty of room to grow on a global level.