The 2011 digital income of British record companies grew even faster than in 2010, according to trade figures released recently by the BPI. Geoff Taylor (pictured), BPI Chief Executive, said :“The record industry has continued to invest heavily in discovering and supporting outstanding British talent, which has helped sustain revenues in the face of difficult economic circumstances.”
Trade income from digital music increased by a quarter (24.7%) to £281.6m during 2011, with digital growth now offsetting two-thirds of the decline in income from sales of physical music product. Taylor added: “It is highly encouraging for the long-term prospects of the industry that the pace of digital growth continues to accelerate. British labels are supporting a wide range of innovative music services and music fans are embracing digital like never before."
Total digital music income – earnings from online downloads, subscriptions, ad-supported services and mobile – now accounts for more than a third (35.4%) of UK recorded music turnover, up from 27.4% in 2010. Revenue from digital albums grew strongly in 2011 and is now almost at the same level as digital single tracks. Digital albums generated £117.8m in trade income – up 43.2% on 2010’s year-end result of £82.2m. Earnings from digital single tracks rose 11.3% to £120.5m in 2011, compared to £108.3m in 2010.
The income from subscription digital music services also grew by 47.5% during 2011. Total trade income from physical formats – albums, singles and music video - fell by 14.1% overall in 2011, with revenues dropping for the eighth year in a row to £513.8m from 2010’s total of £598.0m. The 2011 market for physical albums dropped 14.4% to £484.7m compared to £566.4m the year before.
Industry revenues from physical music videos on DVD and Blu-Ray were down by only 3.3%, accounting for £25.8m, down on 2010’s tally of £26.7m. Income from physical singles dwindled by 33.1% to £3.3m overall.
