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30.03.12 MusicWeek 15
for the first time. This sector rose by 5.7% in 2011 to $342m (£215m) to make up around 2% of global recorded music revenues. While an increase in subscription services is
clearly helping matters, by far the main reason why revenue across all disciplines was down only marginally was the contributions of both the US and Germany. Remaining the first and third biggest music markets respectively in 2011, both territories’ sales were flat during the year. In the States sales were down by just 0.1% to $4,372.9m (£2,753.2m), having dropped by 10.0% in 2010, while the German market declined by 0.2% to $1,473.7m (£927.8m). This compared to a 4.1% fall in 2010 when Germany moved back above the UK to claim third spot on the global league table. Having suffered double-digit declines in each of
the preceding three years, the US market being virtually flat last year has to be a cause of real optimism. Driving this improvement was digital, which for the first time last year accounted for more than half (51%) of industry revenues in the market as new players such as Spotify and Muve Music launched. Digital sales grew by 9.1% to $2,213.4m (£1,393.6m), helped by download album sales expanding in unit terms by 19.5% to 103.1 million units. Another important driver of US music revenues
was public performance and broadcast income and this rose there by 45.9% last year to overtake the UK (down 0.6%) as the biggest market for this sector. The big increase included efforts by US performance rights music licensing company SoundExchange to ensure music users paid fair commercial rates as well as overseeing that businesses were properly licensed. Growth was further aided by the expansion of companies such as Pandora, SiriusXM and cable TV and internet streaming services. Germany also reported double-digit digital
growth with revenues rising 21.4% to $225.4m (£141.9m), but physical continued to dominate and made up 78% of sales in 2011, compared to 15% for digital. In between the US and Germany on the global
league table Japan suffered a 7.0% dip in revenues to $4,087.7m (£2,573.6m) in what even away from industry matters was a traumatic year with the devastating earthquake and tsunami and their after- effects. As with Germany, physical sales in Japan
TOP OF THE WORLD BIG SELLERS
SIX OF THE 20 biggest-selling albums of 2011 globally were by UK acts with Adele boasting a double appearance joined by Coldplay, Amy Winehouse, Mumford & Sons and Susan Boyle. Adele’s expected place at
the top with 21 came with 18.1 million sales, the highest calendar tally for any album since IFPI started compiling this annual chart in 2002. It was joined in sixth place by its predecessor 19, while Coldplay’s Mylo Xyloto was fourth, Amy Winehouse’s posthumous Lioness: Hidden Treasures 11th, Mumford & Sons’ Sigh No More 13th and Susan Boyle’s Someone To Watch Over Me 20th. Across the entire
Top 50 chart Universal claimed an unrivalled 18 titles outright, including six of the leading 11 sellers led by Lady Gaga’s Born This Way, plus another five titles in conjunction with other companies. Headed
GLOBAL TOP ALBUMS 2011 POS ARTIST/ TITLE / CORPORATE GROUP
1 ADELE 21 XL (XL/Sony for US and Latin America) 2 MICHAEL BUBLE Christmas Warner 3 LADY GAGA Born This Way Universal 4 COLDPLAY Mylo Xyloto EMI 5 BRUNO MARS Doo-Wops & Hooligans Warner 6 ADELE 19 XL (XL/Sony for US and Latin America) 7 JUSTIN BIEBER Under The Misteltoe Universal 8 RIHANNA Loud Universal 9 RIHANNA Talk That Talk Universal 10 LIL WAYNE Tha Carter IV Universal
by Beyoncé’s 4, Sony provided 13 albums on its own and three with others, while Michael Bublé’s Christmas was
the biggest of four exclusive Warner
titles, the same number
as EMI whose 2011 top seller was Mylo Xyloto. EMI also shared another two titles and Warner one, while nine of the top 50 were partially or totally independent releases.
accounted for the vast majority of sales (75%) with digital revenues actually shrinking last year by 16.3% to $902.4m (£568.2m). This was a far bigger drop than what occurred in the physical market (down 4.0%) and came despite strong rises in download sales. However, the increases were cancelled out by a steep fall in the mobile music market, which has previously accounted for a big part of Japan’s digital music business but is being badly hit by piracy, while smartphone penetration is much lower than in other developed markets. The UK retained its fourth place with a 3.1%
overall drop to $1,433.7m or £888.9m with physical revenues down 14.1% but digital up 24.7%. Despite the total decline, the UK moved further ahead of fifth-placed France, which suffered a slightly bigger
GLOBAL RECORDED MUSIC TRADE REVENUES (US$ millions)
2010
PHYSICAL DIGITAL
PERFORMANCE RIGHTS
SYNCHRONISATION TOTAL MARKET
11,142 4,840
862 324
17,168 2011
10,170 5,229
905 342
16,646
% CHANGE –8.7%
+8.0% +4.9% +5.7%
–3.0%
TOP 10 RECORDED MUSIC MARKETS 2011 POS 2010 POS COUNTRY / REVENUE
1 2 3 4 5 6 7
1 USA $4,372.9m 2 JAPAN $4,087.7m 3 GERMANY $1,473.7m 4 UK $1,433.7m
5 FRANCE $1,002.2m 7 AUSTRALIA $475.2m 6 CANADA $434.0m
8 10 BRAZIL $262.6m 9
10 9 ITALY $239.9m 8 NETHERLANDS $240.2m
% CHANGE –0.1% –7.0% –0.2% –3.1% –3.7% +5.7% +2.6% +8.6%
–12.1% –6.4%
As the number of users of streaming services rapidly grows then so does the
downloads market with the one-track business increasing by around 13.3% in unit terms last year with digital albums up 25.8%.
fall in overall revenues of 3.7% to $1,002.2m (£631.0m), although it could claim Europe’s most developed subscription sector with revenues here rising last year 89.4%. Australia leapfrogged Canada to become the
world’s sixth biggest music market with revenues improving by 5.7% to $475.2m (£299.2m), although sales were also up (by 2.6%) in Canada to $434.0m (£273.2m) as it slotted into seventh position. An 8.6% revenues rise results in Brazil moving
ahead of the Netherlands (down 12.1%) and Italy (down 6.4%) to claim eighth position, while other markets increasing include Sweden (up 3.0%), India (6.2%), South Korea (6.4%) and Mexico (5.5%). Revenues were up only marginally in China (1.2%) and were heavily down in Russia, dropping 29.3%.
SLOWING DOWN BUT MAKING PROGRESS PHYSICAL PRODUCT EVOLVES
THE SOUND OF JAWS DROPPING is unlikely to accompany the news that physical music sales dropped again last year with the market shrinking by another 8.7% worldwide. But behind this fall is what the IFPI is
billing as an “evolution” of physical product with, in its eyes, the sector moving towards deluxe products or being bundled with merchandise or concert tickets. Progress here is evident by a slowing down in the decline of the sector, having dropped by 13.8% in 2010 and 12.7% in 2009. Vinyl sales are actually
rising year-on-year and in the US, Germany, France and the Netherlands the IFPI reveals they were at their highest level last year since 1997. Across the globe the vinyl market was up 28.8% last year to $115m (£72m), although it should be noted this only made up 1% of all recorded music sales. Another important development in the physical music market in recent years
has been the rise of the super deluxe boxed set and in its Recording Industry in Numbers publication covering 2011 the IFPI throws the spotlight on four key boxed- set releases last year: those for Nirvana, Pink Floyd, Elvis Presley and The Smiths. In six of the world’s Top 10 music
markets physical continued to make up around 70%
or more of total recorded music revenues, led by Germany with 78%. However, even in the developing market of Brazil, which rose in the rankings from 10th to eighth position, physical contributed 74% of all sales, aided by some strong local releases by acts including Paula Fernandes and Padre Marcelo Rossi. In four of the Top 20 music markets – the US, South Korea, India and Norway – physical found itself behind digital in revenue terms, while digital is on course to overtake physical in
Spotify’s home of Sweden this year.
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