Music Industry Sales Rise, and Digital Revenue Gets the Credit
The music industry’s global sales increased last year for the first time since 1999. Although total revenue increased by only 0.3%, the news is encouraging for the music industry, which has been hurt by online piracy over the years. New sources of revenue such as digital sales have compensated for a decrease in CD sales. While sales of singles and albums from services like iTunes have gone up, the truly reassuring news is that subscription-based offerings such as Rhapsody saw a 44% increase in users. There has also been growth in the marketing use of music and royalties from performances. With digital sales accounting for over half of the music industry’s revenue in the United States, profitability is expected to rise as digital delivery of music lowers record companies’ costs.
Had the music industry embraced the new technology and its growing popularity during the digital age, it is possible that these last ten years of revenue decline could have been avoided.
Written by: Constantine Kostikas