Streaming services ‘save’ Swedish record industry

Streaming services 'save' Swedish record industry
While Swedish CD sales are continuing to drop significantly, record companies’ streaming revenue is soaring and digital sales now amount to over half of the companies’ proceeds, according to fresh figures from the International Federation of the Phonographic Industry (IFPI).

The rise in overall record company revenue doesn’t amount to more than 0.5 percent, some 829 million kronor ($123 million).

But for the first time, digital sales makes up more than half, 51 percent, of the total revenue.

“Perhaps we have an odd situation in the music industry but we are pleased that the overall market increases by 0.5 percent. If you were to compare that to any other business few would be overjoyed with that kind of growth. But we are not used to growth at all,” said Ludwig Werner, IFPI Sweden CEO to news agency TT.

According to IFPI, digital sales amounted to 51 percent of the total revenue, a rise in 65 percentage points since last year.

This kind of purchasing is continuing to rise in Sweden with 82 percent from streamed music services like Spotify (compared to 66 percent in 2010) and 18 percent from other internet services (34 percent in 2010).

More surprising perhaps is that 46 percent of the record companies’ revenue is still amassed from the almost 10 million actual discs sold, to a value of 385 million kronor.

“With the media and the industry so focused on the digital market since a few years back, it is actually almost more surprising that the CD still makes up for almost half of the companies’ revenue,” said Werner in a statement.

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