Global Music Revenues Grow at Fastest Rate in more than Two Decades

London, Global music revenues grew at the fastest

rate in more than two decades last year, as the streaming revolution

more than made up for the plummeting popularity of CDs.

Worldwide recorded music revenues surged 9.7% to $19.1bn

(Pound 14.6bn) in 2018, the fastest rate of growth since at least 1997 when

the Oasis album Be Here Now topped the UK albums chart. It is the

highest level of income earned by the music industry since 2006, when

CD sales accounted for more than 80% of global revenues of $19.6bn

and when streaming income was non-existent.

Now the tables have turned, with revenue from music fans using

services such as Spotify, Apple Music and Amazon Music surging by

34% year on year to $8.9bn, accounting for 47% of the total global

market for recorded music. The sale of physical formats, primarily CDs,

fell by 10% to $4.7bn, accounting for 24.6%.

Music industry body the International Federation of the

Phonographic Industry (IFPI) said revenue from paid subscriptions

accounted for 37% of global music revenues last year. Income from

ad-supported music, such as commercials running around YouTube

music videos, accounted for a 10th of the global total.

The music industry argues that YouTube is not paying its fair

share back to labels and artists compared with the billions it makes

exploiting them. YouTube says it paid $1.8bn in ad revenue to the

music industry last year.

Last year also proved to be a bumper one for UK video games as

the global craze for Fortnite pushed revenue to a record Pound 5.7bn.

Gaming fans spent 10% more on consoles, games, hardware

such as headsets, and attending events than they did in 2017, with the

biggest market driver the online-only games market.

The Association for UK Interactive Entertainment (Ukie) said

digital and online revenues � from fans paying to download games or

spending on items to enhance games � grew by a fifth to a record

Pound 2bn last year.

Ukie said the popularity of Fortnite and Battlegrounds helped

push digital and online revenues to account for 50% of the Pound 4bn spent

on all gaming software last year, the largest part of the UK games

market. It is the first time that software revenue spend, which grew

10.3% overall last year, has reached Pound 4bn.

Games console sales rose 6.5% to Pound 702m despite no new

platforms being launched last year, as the renaissance of devices

spanning the PS4 Pro and Xbox One X to Nintendo Switch consoles

continues, the British Guardian newspaper reported.

Source: Oman News Agency