The Music Market Resumption
The crisis in the music industry now seems to be a distant memory.
In the last four years, revenues have registered a positive sign, confirmed also in 2017. Last year the global turnover reached 17.3 billion dollars (IFPI Global Music Report 2018 data), another step forward compared to the 16 billion of 2016 and, above all, a figure that had not been exceeded for exactly ten years.
However, there is still a long way to go: in 1999, at the dawn of the spread of the Internet, the music industry's revenues were 25.2 billion; a number destined to collapse in the following years - mainly due to software piracy that had its symbol in Napster - and to reach an all-time low of 14.2 billion dollars in 2014.
Since then, however, the trend has finally reversed: thanks above all to a market that has been able to innovate and has stopped concentrating its efforts on selling physical products to improve instead the most innovative digital services.
The data speak for themselves: in 2017, streaming services generated higher revenues for the first time than the sale of physical albums (6.6 billion against 5.2), while the sale of digital discs via platforms such as iTunes remains an important item but in constant descent (today it is worth 2.8 billion).
Overall, streaming is responsible for 38% of total revenue and is proving to be able to grow at a very fast pace.
Worldwide, paid Spotify, Apple Music and other users have reached 176 million, up 45% year-on-year.
According to some analysts, we are still far from the peak: by 2025, subscribers to streaming platforms could reach 336 million.
However, there is no lack of shadows: the discontent of the artists is known with the compensation generated by the streaming services, not comparable to those obtained during the golden age of the compact disc.
Not only that: the growing competition between the platforms - with exclusive discs - is partly reviving the phenomenon of piracy after several years of constant decline.
The reason is known: since most users do not have the resources (or at least they do not want) to sign up for more than one streaming service, they rely on piracy to find the albums of the artists who are not present on their platform. A situation that is likely to slow down growth and that should be addressed in an organic way.