Revenue Increase in Music Industry

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Sweet music: Revenue hit high note in 2011
New York Post
By GARETT SLOANE
Last Updated: 3:38 AM, March 27, 2012
Posted: 12:47 AM, March 27, 2012

Music companies were certainly singing a happy tune in 2011.

In addition to posting the first annual increase in units sold since 2004 last year, the music business also produced its first revenue increase in seven years, according to figures released yesterday.

Industrywide, music sales edged up 0.2 percent in 2011 to just above $7 billion, according to the Recording Industry Association of America.

The increase was fueled, in part, by the album downloads and subscription services such as Spotify, Rhapsody, Rdio and MOG.

Digital music now represents 50 percent of US shipments, the RIAA said.

The subscription model received a boost in the second half of the year with the introduction of Spotify in the US and Facebook’s embrace of sharing music through social networking.

The number of people subscribing to music services in 2011 was up nearly 19 percent to 1.8 million people, generating $241 million, 13.5 percent more revenue compared to 2010.

Download sales through platforms such as iTunes rose, as well. Digital single-song sales were up 13 percent to $1.49 billion. Digital albums saw the largest digital jump with sales up 25 percent, topping $1 billion for the first time.

A separate report yesterday from the IFPI put Bruno Mars’ “Just the way you are” and “LMFAO’s “Party Rock Anthem” at the top of the singles charts for most downloaded last year.

Physical sales mostly declined except for vinyl albums and singles, and CD singles.