The music industry has reportedly experienced a sales growth for the first time since 1999.
The digital age has not been kind to the music industry. The availability of free music from numerous platforms and websites ultimately took a serious chunk out of revenue. Record sales pulled in around $38 billion when the business was at its peak.
According to The New York Times, music industry leaders recorded an increase of 0.3 percent in 2012. This is the first time the business has posted a global sales increase in nearly 13 years. The industry enjoyed a total of $16.5 billion in revenue last year.
Although the the numbers are a far cry from where they were in 1999, International Federation of the Phonographic Industry (IFPI) chief executive Frances Moore said it was a step in the right direction.
“It’s clear that 2012 saw the global recording industry moving onto the road to recovery. There’s a palpable buzz in the air that I haven’t felt for a long time.”
Bloomberg reports that digital sales were up nine percent over the course of 2012. The $5.6 million generated from downloads accounted for nearly 34 percent of last year’s total revenue.
Moore said the music industry’s ability to record a sales growth for the first time since 1999 proves record companies are starting to adapt to the digital age.
“These are hard-won successes for an industry that has innovated, battled and transformed itself over a decade. They show how the music industry has adapted to the Internet world, learned how to meet the needs of consumers and monetized the digital marketplace.”
Of course, the industry had some help last year from a number of popular artists. While Carly Rae Jepsen’s
“Call Me Maybe” single pulled in some very strong numbers, it was Adele and her best-selling album 21 that ultimately stole the show in 2012.
What do you think about the music industry recording its first sales growth since 1999?