Digital Music Leads the Global Music Sales in 2016

Over last couple of years, streaming industries have become increasingly popular thanks to availability of internet. While the artists have different views regarding the digital distribution, a report has found that digital purchase now accounts for more half of the annual global revenue.

The latest findings was unveiled by The International Federation Of The Phonographic Industry which represent the labels and recorded music industry worldwide.

The organization reported that the global music sales has grown almost 6 percent last year with a rise in subscription of streaming services means that the music industry didn’t suffer despite declines in downloads and physical formats in the last year. Over last year, the digital revenues have grown more than 17 percent as streaming services are becoming increasingly popular in countries where piracy is widespread.

Interestingly, the report took a closer look at how much compensation an artist receive from different streaming industries worldwide. The report pointed out that the value gap should be narrowed down for sustainable growth in the coming years. For example, YouTube was understandably turned out to be the lowest provider. For example, Spotify on average pays around $20 to record companies per user while YouTube only pays about $1 which will play a much larger role going forward.

However, as streaming services becoming commonplace, artists might have chance to recover as the music sales were declining during a 15 year period. Talking about the services, IFPI’s Chief Executive Frances Moore said, “The industry’s growth follows years of investment and innovation by music companies in an effort to drive a robust and dynamic digital music market. Music’s potential is limitless, but for this growth to become sustainable—for investment in artists to be maintained and for the market to continue to evolve and develop—more must be done to safeguard the value of music and to reward creativity.”

Featured Image: Wikimedia Commons

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