State of the Industry

In 2016, the worldwide recorded music showcase grew by 5.9%, the speediest rate of development since IFPI started following the market in 1997. A second consecutive year of worldwide development for the industry resulted in income greater than the majority of markets, including nine of the main ten. This development, be that as it may, should be seen with regards to the industry losing about 40% of its revenues in the former 15 years.

Streaming has been the driver of this development, with revenues increasing by 60.4%. With more than 100 million paid subscriptions, streaming has surpassed expectations. It makes up the larger part of digital revenue, which now represents half of total industry revenues.

The global digital market is currently seeing major competition, with streaming services developing and expanding their offerings around the globe. Instead of tearing up the current streaming base, the advancements are expanding it. This is giving fans a more elaborate experience and sharing streaming with new markets and potential/new consumers.

In this long-term transition, record companies are seeing this time as the beginning of a new chapter recorded music. We have seen a multitude of changes that have cast some fear due to loss of sales or where incomes are coming from. However, the labels are still committed to investing in music and artists. Now they are driven by the need to deliver music to fans in more varied ways.

The music industry is now attempting to change over the positive income slant presently being experienced into sustainable growth. To accomplish this, music must be protected in a growing digital space. The market 'value gap' must be settled and fair revenue must come back to the individuals who put resources into the industry and making music.

Let's look at the formats and how they measure up to each other. We can see significant changes over the last 10 years. 

PHYSICAL FORMAT 

Physical format incomes declined by 7.6%, a higher rate than the earlier year, which saw a decay of 3.9%. The physical segment still records for 34% of the worldwide market and is especially critical in driving nations, for example, Japan and Germany. 

DIGITAL REVENUES

Digital revenues rose by 17.7% to US$7.8 billion, driven by a sharp 60.4% development in streaming income – the biggest development in eight years. This more than offsets a 20.5% decrease in advanced download income. Streaming now makes up the greater part (59%) of advanced incomes. Surprisingly, digital incomes make up half of the offer of aggregate recorded music industry incomes. In 25 markets, digital incomes now represent more than half of the industry. 

PERFORMANCE RIGHTS

Performance rights income grew by 7.0% to US$2.2 billion in 2016. This revenue stream represents 14% of the market yet remains fundamentally underestimated. 

In 2016 the US, France, and the UK were the three biggest execution rights markets, ahead of the underperforming, Germany and Japan. The business is centered around expanding performance rights revenue in these and other key markets, through obtaining satisfactory public performance rates in Germany and acquiring full performance rights in Japan, China, and the US. 

Tending to the weaknesses in performance rights legislation overall turns out to be much more pressing as the utilization of music is by and large moving far from ownership and towards services that offer consumers access to music. Provided fair market conditions are achieved across territories, the IFPI trusts that the worldwide execution rights showcase still has noteworthy development potential. 

SYNCHRONIZATION REVENUE 

Synchronization revenue grew by 2.8% compared to the 7.0% rise in 2015. It kept up its 2% offer of the global market.