IFPI 2012 Report: Global Music Revenue Down 3%; Sync, PRO, Digital Income Up

From Billboard Magazine:

Trade revenue generated by the global recorded music industry in 2011 dropped by 3% to $16.6 billion, according to the International Federation of the Phonographic Industry’s (IFPI) annual “Recording Industry in Numbers” report, published today (March 26).

Despite the continued year-on-year decline in trade revenue, last year’s sales figures represent a significant slowing in the fall of the market, according to IFPI, who for the first time include synchronization revenues in its annual report.

The inclusion of global sync revenues, which amount to $342 million in 2011, pushed global record music sales well above 2010’s published total of $15.9 billion, as stated in IFPI’s “Recording Industry in Numbers” 2011 report.

If you were to remove synchronization revenues from the equation, global recorded music sales in 2011 totaled $16.3 billion, down 3% from $16.8 billion in 2010. IFPI attributes the numerical difference between its previously published 2010 sales total ($15.9 billion, without sync revenue) to that stated in this year’s report ($16.8 billion, without sync revenue) to the fact that it calculates growth on a fixed U.S. dollar basis, which means that U.S. dollar values have been restated at 2011 exchange rates. In addition, there may be minor revisions/restatements for 2010 from individual markets, according to a spokesperson for IFPI.

IFPI’s study also states that physical format sales slumped by 8.7% globally, falling from a trade value of $11.1 billion in 2010 to $10.2 billion in 2011. The comparative fall from 2009 to 2010 was 13.8%. Meanwhile, global digital revenues saw growth of 8.0%, rising from $4.84 billion in 2010 to $5.23 billion last year, crossing the $5 billion mark for the first time. Digital now accounts for 31% of overall recorded music revenues, up from 29% in 2010, according to IFPI.

Global performance rights revenues also grew, climbing 4.9% globally, to $905 million (up from $862 million in 2010). The sector now accounts for 6% of overall revenues, while synchronization earnings grew by 5.7% in 2011 (totaling $342 million, up from $324 million the previous year) and accounted for 2% of global recorded music revenue.

In the global rankings, the U.S. retained the top position with sales remaining flat in value terms totlling $4.37 billion. Japan, the second biggest global music market, recorded a 7% decline in trade revenues, falling from to $4.39 billion in 2010 to $4.09 billion.

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