THE REVOLUTION OF DIGITAL MUSIC
January 2012 marked the first time digital music sales surpassed physical music sales, making for 50.3% of all music sales. The technological developments of mp3 players and music streaming started the music industry’s digital
revolution by allowing users to purchase and listen to individual songs instead of having to buy the entire album. Since then, music ownership continues to evolve with the rise in popularity of streamed music subscriptions. With these
subscriptions, people are no longer limited to the songs they’ve downloaded and instead could pay for a subscription and enjoy access to unlimited songs. This digital music revolution is also going beyond the consumer level to become
one of the fastest-expanding business models, especially in the interactive era of web 2.0.
GLOBAL REVENUES from digital sales in 2011
DIGITAL SINGLES individual digital tracks sales volume
1.2 billion and still raising
DIGITAL MUSIC REVENUE profit and sales volume breakdown
2012 8.6$ Billion
2010 4.6$ billion
2003 20$ million
With more and more consumers using smartphones and tablets, the way people enjoy listening to digital music continues to expand Digital sales are increasing at a record-setting pace.
80% of the income in 2011 was generated from music downloads.
Streaming services are quickly becoming the leading revenue engine for the music industry. The extra revenue being generated in 2012 is $311 million - that's 8 million more than in the previous year. More and more people are starting
to prefer the unlimited accessibility and availability of streamed digital music over owning their own copies of songs and albums.
THE GLOBAL REACH streaming popularity is on the rise
Popular international digital music services
2011 available in 23 countries
2012 available in 58 countries
2010 8.2 million
2011 13.4 million
2012 18.7 million and string raises
While media stores, which were very popular in the past and sold cd’s and dvd’s in the millions, are closing, vinyl records are experiencing a comeback. New market niches have been created by groups such as DJ’s and people who
prefer the authentic sound of records than the compressed digital files, as well as collectors who love to hunt for rare or scratch-free records. As a result, both the sales of vinyl records and specialty record stores have increased-
catering to this revival.
IT’S ALL ABOUT BEING SOCIAL
Artists have become more involved in directly reaching out to their fans and getting to know them personally.With social networks such as MySpace, Facebook and Google+, interaction is easy, instant and barrier-free.Some emerging
musicians and bands promote their music for free to gain an audience which, will then draw the attention of professional music studios and producers.Established and new bands and musicians, offer their fans first access to new
releases, perks to shows and feedback requests. All this also generates sales of music in a direct and unprecedented way.
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http://www.ifpi.org/content/library/DMR2012.pdf; https://www.strategyanalytics.com/default.aspx?mod=pressreleaseviewer&a0=5268; http://www.totalbankruptcy.com/blog/how-the-internet-has-rocked-the-music-industry;
http://www.informationisbeautiful.net/data/; http://www.diQitalmusicnews.com/permalink/2012/120104vinyl; http://narm.com/PDF/NielsenMusic2011YEUpdate.pdf.