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MusicWeek analyses the UK market’s performance– with Sony/ATV out in front


A previewof some of the great and the good festivals coming this summer

Don’t get carried away, but...

The BPI figures only take into



fter a decade of downward arrows, mainstreammedia

lashings and widespread redundancies, the first fragile green shoots of a digitally-driven return to growth for theUKrecord industry have emerged. According to BPI

figures obtained byMusic Week, recordedmusic revenuesgrewyear-on-yearby 2.7%inQ12012to£155.8m. Significantly, this upswing was

made possible by a landmark tipping point in the shift from physical to digital sales:

 Digital music revenues accounted forMORETHAN HALF (55.5%) of UK record

industry revenues in Q1;  Income from paid-for subscription streaming services DOUBLED year-on-year, up 93% to just under £9m;

Bruno Mars: The songwriter has re- signed with BMG

 Income from ad-supported streaming services JUMPED by

20% YoY to £3.4m;  Digital income from all sources including download, subscription and ad-supported services GREWby almost a quarter (23.6%) YoY to £86.5m – as revenue from physical formats fell by 15.1% to £69.3m.

account recordedmusic sales – excluding anymerch and live revenues accrued by labels. BPI chief executive

Geoff Taylor said: “This is a significant milestone in the evolution of the music business. “UK record

labels have

embraced digital to their core, supporting

innovation and licensing more new

online and mobile services than any other country.As a

result, the industry’s prospects for growth look brighter than for several years. “We will need to see this

trend repeated over several quarters to say we have crossed a digital Rubicon. “However, the creativity,

investment and digital expertise of the British music industry point the way forward for growth in the UK economy.”


01.06.12 £5.15 PRODUCT

Fifty years after they released LoveMe Do, the Fab Four’s



Leading UK recorded music execs have called for timely legislation from Government to ensure Q1’s surprise market growth doesn’t become a flash in the pan: Andria Vidler, CEO EMIMusic

UK & Ireland: “At EMI, our organisation and teams have been set up in a way that reflects this shift in the business, as the market has been moving this way for some time now. “We’ll continue

“The Coalition Government must helpmake this the inflection pointwe all want it to be”


to work with all our retail partners to give themthemusic that their customers want in the ways they want, and we look forward to the full implementation of the Digital Economy Act to help grow the market further.” Nick Gatfield, chairman and

CEO, SonyMusic UK: “In spite of the ongoing challenges that are facing themusic business this is the strongest signal we have had yet that real transformation is taking place and that we are on track to return to sustained growth over the next two to three years."

WarnerMusic UK: "The news that digital revenues have overtaken physical this quarter is very encouraging. But for this to become the inflection point we'd all like it to be, the Government needs to providemeaningful support to the creative industries that enrich the UK - both culturally and economically. ”[The Coalition]

must step up the pressure on illegal websites

which undermine the legitimate services that compensate artists for their work and preserve investment in discovering and developing the Britishmusic stars of the future." David Joseph, chairman and

CEO, UniversalMusic: “The figures show a very encouraging picture of amarket returning to growth. It’s been amuch talked- aboutmoment, but the promise of a new shape to themusic market is finally being realised. The doubling of revenues from subscription services is particularly impressive.”

BMG celebrates surpassing seven-figure copyrights barrier

The totalnumberofpublishing copyrightsmanagedbyBMGhas exceededonemillion, less than four years after the formation of the company in October 2008. The firmestimates

that the figure puts it

fourth in theworldwide rankings ofmusic

publishing companies, following the announced takeover ofEMI Music Publishing by a consortiumled by Sony/ATV. As ofMay 29,BMG

represented 1,057,858 copyrights - equating to approximately 59,000 hours of continuousmusic. BMGCEOHartwigMasuch said: “Our growth has been based

not just on a clear plan to achieve scale,but a distinct philosophy aboutwhat a 21st centurymusic company should look like.” BMGhas acquired the likes of

CrosstownSongs,CherryLane, Chrysalis andBugMusic since splitting fromSony four years ago. “Acquisitionwas anecessary tactic to achieve scale,butwe are

proud tohavewalked away from dealswe feltwere over-priced,” saidMasuch.“Further acquisitions will inevitably arise,but our focus is verymuchongrowing our business organically,and ensuring we canservicewriters’and artists’

needs at every level.” Read ourHartwigMasuch Big Interview-Page 10

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