Last week we learnt that the revenue haul of the worldwide recorded music industry last year was down 0.4% in 2014, to under US $15bn.
But now it’s clear where the blame for that decline ultimately falls: Japan.
The world’s second largest music market’s revenues dropped by 5.5% in 2014, according to new IFPI data. The impact of this decline was highly significant: excluding Japan, global industry revenues were actually up 0.7% in the year.
The information is contained in the IFPI’s new Recording Industry In Numbers book, which provides comprehensive data for almost 50 territories as well as in-depth analysis of industry trends.
Japan’s total trade value in 2014 stood at US $2.68bn in the year, a little under double that of the next biggest territory – Germany on $1.4bn, up 1.9% compared to 2013.
The US was the biggest in 2014, with a trade value of $4.9bn, increasing 2.1% YoY.
There was strong digital growth in many emerging markets including Argentina (+67.7%), Colombia (+94.9%), Indonesia (+129.0%), Peru (+96.5%), South Africa (+61.5%) and Venezuela (+272.8%).
Revenues from subscription services increased by 39% in 2014 to US$1.6 billion worldwide – 23% of the total digital music market. The IFPI estimates that more than 41m people now pay for a music subscription worldwide.
Global revenues from subscription and advertising-supported streams now account for 32 per cent of digital revenues, up from 14 per cent in 2011.
Frances Moore, chief executive of IFPI, says: “IFPI’s Recording Industry in Numbers is the most comprehensive overview of the global recorded music market available.
“Within its pages is analysis of global trends in the business and in-depth statistics covering almost 50 markets worldwide.
“The broad picture that emerges is of an industry that has transformed itself for the digital age, adapting its business models and licensing hundreds of services and millions of tracks for use online.”
[Pictured: Frances Moore with the biggest-selling global artist of 2014, Taylor Swift]Music Business Worldwide