Despite the doomsday scenarios, the music recording business isn't doing too bad
The impossible has happened, revenue from music sales is on the rise globally, for the first time since 1999. It's only a 0.3 percent growth, but it is growth. Despite all the doomsday scenarios that the recording industry keeps on coming up with, people are still buying music, more of it than last year.CD sales are still dropping, they will continue to do so, but for the first time, digital sales growth outpaced the drop in physical sales.
Digital sales grew by nine percent in 2012 and now make up 34 percent of global music revenue, the music industry group IFPI revealed [PDF].
What's interesting is that streaming music services are starting to be a notable contributor, 10 percent of the digital revenue came from Spotify and its ilk.
Considering that everyone complains that revenue from these services is minuscule, it's encouraging to see that the figure is actually not insignificant.
The fact that little of the money that Spotify, Deezer and anyone in between pay the record labels actually end up at the artists has more to do with record label contracts than streaming music business models.