On April 24, the International Federation of the Phonographic Industry (IFPI) released its Global Music Report 2018, reviewing and tabulating the business fortunes of the recording industry last year worldwide. The music industry grew overall in 2017 by more than 8 percent to $17.3 billion, led by streaming revenues which grew more than 41 percent. "We're not getting complacent," said Warner Music Group CEO of international and global commercial services Stu Bergen at the report's release event in London. "We've fought too hard to get here and, after 15 years of decline, there's still plenty of room to grow." Last year was the third consecutive year of growth for the first time this century.
The IFPI report credited Ed Sheeran's "Shape Of You" as last year's top song followed by Luis Fonsi's "Despacito." While top sellers and the 176 million subscribers paying for premium music accounts make for good news, IFPI chief executive Frances Moore warned that "there is a structural fault in the system" because of the value gap. Combining paid and ad-supported streaming for music, revenues total $5.6 billion with 272 million users overall. On the video side, revenues are $856 million, much less, with more than 1.3 billion users, much more. "Until we fix that structural defect to the market it will always be a struggle," said Moore.
In 32 global markets, digital is now more than half of all revenues. Physical sales and downloads have continued to decline. Without counting video, streaming is 33 percent of all revenues. In 2017, adding video back in bumps that 5 percent up to 38 percent from all digital. If the value gap wasn't holding back fair music revenue for video streams, that video bump would be much more substantial.
