02-04-2019

Music sales in Spain grew, for the fifth consecutive year, 2.3%

IFPI PUBLISHES THE MUSIC GLOBAL REPORT 2019: STATE OF THE INDUSTRY REPORT, ANNUAL REPORT ON RECORDED MUSIC

  • In Spain, accumulated growth since 2014 represents 49%
  • In Spain, the digital market already accounts for 71% of the total market.
  • Half of all sector’s revenue is driven by paid streaming.
  • Paid streaming services reached 255 million subscribers worldwide

The Spanish music market ended 2018 with a total revenue of 237.2 million euros, showing an improvement of 2.4 percentage points, with reference to the 231.7 million euros counted the previous year. Streaming is the preferred formula for music consumption among Spanish users. In 2014, was the first time the digital market sales exceeded the physical market sales. The difference, four years later, confirms the new access habits to music in the XXI century. From the 237 million euros in 2018, 71.2% (169 million euros) corresponded to digital sales, while traditional formats have to settle for the remaining 28.8% (68.2 million euros).

The global recorded music market grew 9.7% in 2018, the fourth consecutive year of increase. Figures released today in IFPI’s Global Music Report 2019 show total revenues for 2018 were US$19.1 billion, as in the Spanish case, streaming revenue grew by 34.0% and accounted for almost half (47%) of global revenue, driven by a 32.9% increase in paid subscription streaming.

All of this information can be found in the Global Music Report 2019. This annual report is published by IFPI, representing the recording industry worldwide; you can find it in the following link: https://www.ifpi.org/downloads/GMR2019.pdf.

 

 

Increase in paid streaming consumption

In Spain, with reference to digital market, premium or paid streaming subscriptions have increased 37%, encouraged by the increase of new subscribers to services like Amazon Music Unlimited, Apple Music, Deezer, Spotify, Youtube Music or Tidal, which account for 2.3 million subscribers in our country and represent to the sector 115.3 million euros, almost half of total revenue. Meanwhile, ad-supported audio streaming falls 43% (from 29.9 to 17 million) and video streaming also financed by advertising, stands still in spite of it continues growing consumption and the outstanding songs of year beat records of views (revenue is maintained from one year to another, only 24 million). It is expected that the new directive recently approved by the European Parliament will correct this gap between the traffic generated by music for these webpages and the revenue received by the industry from its consumption. Permanent downloads of songs and albums suffer serious decline of 22.5% (from 10.2 to 7.9 million).

Something similar happens to the physical market; Spanish people bought 6.5 million of compact discs during the whole year, with a value of 53.8 million euros, figure that represents a new 20% fall with reference to the 66.9 million euros registered during 2017. In spite of that, these sales are very important to this sector, meanwhile, vinyls still enjoining an unexpected new youth and go forward to almost 19% increase.  More precisely Lps’ sales evolve from 9.9 million in 2017 to 11.7 million along the following twelve months and they already represent 17% of physical formats’ sales.

Taking into account this changeover scenario of music consumption, where physical formats give way to online streaming, and the growth in sales of 2.4% during this year, it is promising as it reflects a reality each time more oriented to digital and per pay consumption.

 

“There is no other secret that intelligent industry transforming effort and its safe bet during all these years to put music at everyone disposal, present and future, to enjoy from their devices, immediately and on their choice”, stated Antonio Guisasola, President of PROMUSICAE. And he also stated that: “With a changing market and in constant evolution, we have left behind all continued falls we had for years and years, to find an accumulated growth of 49% during these last years, which comfort us.  However, we remain vigilant; it is always a long way to go to receive an adequate revenue for the use of music and the most important, the day-to-day work in taking new challenges with artists about to be discovered and who will bring us future successes to come and satisfy those consumers increasingly numerous. This is the major challenge we have to face to make 2019 a better year”.

“Prometo” as album and “Lo malo” in songs.

While we are awaiting for the successes to come in 2019, what has not changed over the last decade is the prolonged romance with Pablo Alboran with the Spanish public. Prometo, the fourth studio album of the melodic pop singer-songwriter from Malaga, ended 2018 as the best-selling artist.

Manuel Carrasco is the second best-selling artist, with La Cruz del Mapa, released only three weeks before 2018 ended, Pablo Lopez, Camino, fuego y libertad and Manolo García, fourth position with Geometría del Rayo. Rosalia, as all those newcomersto music industry, enjoys greater presence in the digital universe than in physical format, but the impact of El mal querer allows her to be on the fifth position in the traditional charts. Melendi can be found in the meritorious sixth position with Ahora, while Alejandro Sanz, other essential artist, is on the seventh position of the Top 10 with + es +: The concert, mega event at the Madrid Vicente Calderon stadium.

The impact of Operación Triunfo, 2017/2018 edition of the programme, which came back with an important success in the television programming, was evident in both the traditional annual charts and in the songs digital charts. Three of the anthological albums of the music contest, Lo mejor 1ª parte 2017, Lo mejor 2ª parte 2017 and Lo Mejor 1ª parte 2018,  obtainedeighth, ninth and tenth position of the best-selling albums chart. Something to take into account is that all of these artists sing in Spanish.

At the same time, there is a big difference between styles, pop music in physical format and Latin rhythms and the urban rhythm songs are preferred in digital format.

After Lo malo (Aitana and Ana Guerra), the songs more played in our devices were, in that order; Dura (Daddy Yankee), Sin pyjama (Becky G with Natti Natasha), Te bote (Nio Garcia), Me niego (Reik, Ozuna and Wisin), Usted, (Juan Magan with Mala Rodriguez), Vaina loca (Ozuna and Manuel Turizo), 1 2 3 (Sofia Reyes), Telefono (Aitana) and X (Nicky Jam and J Balvin).