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Ifpi.Org Recording Industry in Numbers 2009 the Definitive Source of Global Music Market Information

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Ifpi.Org Recording Industry in Numbers 2009 the Definitive Source of Global Music Market Information Recording Industry In Numbers 2009 The Definitive Source Of Global Music Market Information www.ifpi.org Recording Industry In Numbers 2009 The Definitive Source Of Global Music Market Information www.ifpi.org It all started in a café in Bristol, England in 1934, when dance musicians were replaced by vinyl records played on a phonograph. Back then, PPL had just two FOR 75 YEARS, members – EMI and Decca. Now we have over 3,400 record companies and, following a merger with the principal performer societies, 39,500 performers. In addition, our reach has extended to include international repertoire and overseas PPL HAS BEEN royalties through 42 bilateral agreements with similar organisations around the world. PPL licenses businesses playing music, from broadcasters to nightclubs, from GROWING INTO A streaming services to sports studios, from internet radio to community radio. Licensees are able to obtain a single licence for the entire PPL repertoire, a service which is seen as increasingly valuable for both rightholders and users alike as MODERN SERVICE consumption of music continues to grow. Broadcasters such as the BBC have commented that they simply would not be able to use music at such a scale, across nine TV channels, sixty radio stations, the iPlayer and numerous online services ORGANISATION without a licence from PPL. The PPL licence is equally valuable to other users, such as commercial radio stations, BT Vision, Virgin Media, Last.fm and even the fourteen oil rigs that want to keep their oil workers entertained on their tours of duty. FOR THE MUSIC For the performers and record companies who entrust their rights to PPL, the income from these new distribution outlets is becoming increasingly valuable. Total income (including music videos which are licensed through VPL) now tops INDUSTRY, READY £140m and continues to increase. All the income generated, less the actual costs of licensing and distribution, is distributed direct to the record companies and performers whose recordings have been played. PPL takes no profit for itself. AND WILLING For most record companies and performers – featured artists, session musicians, orchestral players, backing vocalists and others – this revenue is an important income source. This significant additional income stream also helps the record TO TACKLE THE industry to continue the essential investment in new recordings. Each week PPL receives electronic details of approximately 6,500 new recordings. CHALLENGES OF THE This information is now essential to almost every area of the music business. As well as underpinning PPL’s licensing and distribution operations, this data is also passed on to PRS for Music for mechanical licensing, to the Official Charts DIGITAL WORLD. Company and to BPI and IFPI for anti-piracy purposes. PPL HAS COME A LONG WAY IN 75 YEARS. NOW THE CHALLENGES ARE GLOBAL, DIGITAL AND DELIVERING AN EVER BETTER SERVICE TO THE RECORD COMPANIES AND PERFORMERS. PPL LOOKS FORWARD TO A BRIGHT FUTURE. To find out more:+44 (0) 20 7534 1000 www.ppluk.com STANDING UP FOR MUSIC RIGHTS. PPL289IFPIAd.indd 1 1/5/09 09:36:47 IFPI Recording Industry In Numbers 2009 01 Contents 3 : Introduction 4 : Sources & Notes 5 : Recorded Music Sales In 2008 11 : New Business Models 14 : Unauthorised Downloading 16 : Top Sellers 2008 23 : Broader Music Industry North America Asia 27 : Canada 58 : China 28 : USA 60 : Hong Kong 61 : India 62 : Indonesia Europe 63 : Japan 30 : Austria 65 : Malaysia 31 : Belgium 66 : Philippines 32 : Bulgaria 67 : Singapore 33 : Croatia 68 : South Korea 34 : Czech Republic 69 : Taiwan 36 : Denmark 70 : Thailand 38 : Finland 39 : France 41 : Germany Australasia 42 : Greece 71 : Australia 43 : Hungary 72 : New Zealand 44 : Italy 45 : Netherlands Latin America 46 : Norway 73 : Argentina 47 : Poland 74 : Brazil 48 : Portugal 75 : Chile 49 : Russia 76 : Colombia 50 : Slovakia 77 : Ecuador 51 : Spain 78 : Mexico 53 : Sweden 80 : Peru 54 : Switzerland 81 : Uruguay 55 : Turkey 82 : Venezuela 56 : UK Africa 83 : South Africa Appendix 85 : World Rankings 2008 89 : Physical Market Repertoire Origin 2008 86 : Recorded Music Volume Trend 90 : Certification Award Levels 87 : Recorded Music Retail Sales 2008 92 : Local Music Industry Association Contacts 88 : Digital Share By Market 2004 – 2008 94 : Taxes On Sound Recordings & Exchange Rates 01 DLJ@:8E;D<;@8C@K@>8K@FE (-$(/9\ie\ijJki\\k#Cfe[feN(K*CE"++' )'.)0(*,'' Forbes Anderson Advert7.indd 2 30/4/09 15:03:02 IFPI Recording Industry In Numbers 2009 03 Introduction Recognising The Value Of Music Economic headlines in 2008 were almost obtain music as part of a bundled package unremittingly gloomy, with countries with their ISP subscription or mobile phone worldwide slipping into recession purchase. All these different channels and chaos hitting the financial have one thing in common – they pay markets. The music industry the creators of the music their was not immune from this customers are enjoying. turbulence but, as the figures in this 16th edition of the Investing In Artists Recording Industry in Numbers Despite rapid changes in the show, the picture was not sector, music companies bleak across the board. remain the largest investors in artists. They invest around The global decline in recorded 20 per cent of their revenues music sales of eight per cent in discovering, nurturing was driven largely by the and developing talent. The United States, the largest skills and financial backing market in the world for our they provide enable artists to industry. The US was responsible concentrate full-time on their for 56 per cent of the decline in music career. Record labels can revenues generated by physical sales also open the door for artists to worldwide. Excluding the US, global work with the best songwriters and recorded music sales (including digital John Kennedy, IFPI Chairman & CEO studio producers in the business. sales and performance rights) would have fallen by a more modest 3.9 per cent. are moving in an encouraging direction. Record labels of all sizes succeed because In the meantime, music companies are they aggregate artists together. For every In Asia there was a different and more continuing to experiment and innovate successful act that forges a career in positive picture. Japan, the second largest with models that get music to consumers music, several more fail to connect with market for recorded music worldwide, in any way they want it and which pay the public and cannot recoup the advances saw overall sales growth of one per cent. creators the rewards they deserve. they have been paid through sales. That There was also growth in China, India, is the investment risk that record labels Thailand and South Korea. These markets Anyone who earns a living from creativity face. The role of the record label is evolving have been transformed and driven by will have been heartened in April to see in the 21st century, but they are needed digital sales. the conviction of the operators of The more than ever to discover great acts and Pirate Bay. The trial of those individuals develop their talent. Europe offers a mixed picture. In some has been much misrepresented in the markets, such as the UK, revenues from blogosphere. In fact, the outcome was Protecting The Value Of Music digital services rose sharply and mitigated, great news for creators who need to know The trade value of the recorded music to some extent, falling CD sales. In other that their rights can still be protected market has been shrinking remorselessly markets, such as Italy, digital platforms by law from deliberate and systematic for the last nine years. Increasing digital continue to underperform. violators like The Pirate Bay. sales have not offset falling physical sales. This development has coincided with For the music business, the challenge A Brand New Sector the explosion in availability of copyright- remains creating a thriving online business Today’s digital music market is dominated infringing music on file-sharing networks. that gives consumers access to the music by services that in some cases did they want in a way which also rewards and not even exist six years ago: iTunes, Governments now emphatically agree there respects creators, artists and producers. AmazonMP3.com, Nokia’s Comes With is a problem to solve: it is grave and mere Music, Sony Ericsson’s PlayNow Plus, debate and talk are simply not going solve In France an enlightened approach to Spotify, YouTube, TDC PLAY, We7, Dada, it. The debate over the future of music controlling internet piracy led to the Play.com and MySpace Music. in the digital age is fundamentally about government proposing the Creation and recognising the value of creativity. Creating Internet law which would oblige ISPs to Music companies have embraced new music costs money. People who work take steps to deter their subscribers from technological change and are working to create an album and bring it to the public repeated unlawful file-sharing. At the time with a huge variety of partners to bring need to earn a livelihood like anyone else. of publication, the proposed law is being great music to the public. New services Operators of music services need to see a debated in the French National Assembly. are offering users a huge variety of ways return on their investment, not face unfair The music and film businesses are looking to legally access music. Fans can now competition from online piracy. Music has a for other governments to follow this buy a-la-carte downloads, listen to free real value and that should be respected and approach. Several, from the UK to Taiwan, streamed music, watch music videos or recognised by all parties. 03 04 IFPI Recording Industry In Numbers 2009 Sources & Notes Sources bundled subscriptions were included Compiled by Francesca Jacobson and in the digital sales figures in 2008.
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