MUMBAI: Marking a major milestone in the UK music industry, digital music sales have surpassed revenues from physical formats like CDs and records for the first time ever, according to a report by the British Phonographic Industry (BPI).
Income from downloads and streaming services accounted for 56 per cent of the ?155.8 million that music buyers spent from January-March 2012. The report shows revenue from digital sales has significantly grown by 23.6 per cent, year on year, to ?86.5 million.
While overall spending on music increased by 2.7 percent from the same period in 2011, revenue from physical formats such as CD and vinyl, dropped by 15 per cent and now represents ?69.3 million. Advertising-supported, free music streaming services like Spotify and We7, pulled in revenue of ?3.4m in the quarter, up 20 per cent from the same period in 2011.
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Album downloads soared by 22 per cent during the three-month period and brought in more income than single downloads, making it the second successive quarter in which this has occurred. The best-selling digital album was ‘Born to Die’ by US singer Lana Del Rey followed by Emeli Sande and Ed Sheeran.
BPI chief executive Geoff Taylor said, “This is a significant milestone in the evolution of the music business. UK record labels have embraced digital to their core, supporting innovation and licensing new online and mobile services than any other country. As a result, the industry’s prospects for growth look brighter than for several years. We will need to see the trend repeated for several quarters to say we have turned the corner – demand for physical CDs remains strong in the UK.”
For many years the music industry seemed to be fighting a losing battle to convince people to pay for online music, with many trading it for free. But the new figures suggest paid-for services have become more of the norm in UK now. Last year the UK music industry was worth ?795million, down 3.4 per cent from 2010.
