04-09-2019

Revenues from music sales increase 27% during first half 2019 in Spain

Streaming boom, substantial vinyl increase and upturn of CD in the best first half for the sector since 2001

During first half of 2019, music sales in Spain have experienced the highest increase since the beginning of the century, when the scourge of piracy widespread and sales plummeted. Collapse did not stop for a single year until 2014, but the recovery, modest since then, is being more profound this season. Specifically, Spaniards invested near 140.7 million euros in streaming and physical carriers, amount that 26.9% higher compared to the same period of 2018, when it was 110.9 million. The unstoppable rise of streaming is supporting these results, but there are also other factors such as the significant rise of LP vinyl sales and even the increase of sales of CDs, a carrier that had been registering decreasing numbers over last years.

 

The rise of digital consumption models is widespread in main international markets, but it is striking the burst of growth of streaming in Spain, as initial figures were discrete. Subscriptions to platforms such as Amazon Music, Apple Music, Deezer, Google Play, Spotify, Tidal and similar represented an expenditure of 78 million euros by Spanish music fans between January and June, 41% more compared to the same time frame of 2018 (55.3 million). Payment streaming is by far the main active of the income statement, but the sector's revenue figures are also positive in the other tier of service, that of ad-supported free access. Revenues go from 8.4 million in 2018 to 10.4 million this year, 24.4% increase.

 

The overwhelming increase of streaming only underpins the weight of the digital business compared the physical one. First evidences of the clear consumer acceptance of this model appeared for the first time in 2015, but there is no hint of doubt now: 76.8% of Spanish industry income come from the online world and only the remaining 23.2% come from tangible products, compact discs and vinyl albums.

 

Rise of CD

And this in spite of 2019 being a very positive year for such carriers. CD, in the midst of a setback that did not seem to touch ground, rebounds for the first time since 2014. Spaniards spent 24.1 million on the purchase of compact discs between 1st January and 30th June, 9.7% more compared to the previous period.  Sales were 22.03 million during the same period of 2018.

 

Vinyl is an option accepted by an increasing number of music fans, besides. Nostalgic as well as newcomers vindicate with their sales the virtues of this format, living again one of its best moments with its increase in terms of percentage. So far in 2019 is 53% increase, as vinyl albums were bought with a value of 7.7 million euros compared to 5.1 million accounted last comparison period. In other words: vinyl, which seemed to be a virtually extinct option for a decade, gets now 24%, almost a quarter of the physical market.

 

Promusicae's President, Antonio Guisasola, described as "excellent" the figures presented today, and highlighted the role of the recorded music industry in the results obtained. "All over these years a new industrial tissue has been created that is now going full steam, despite the difficulties that entail to have such a high piracy rate. If we maintain the effort to achieve a reduction, the digital market will experience a consolidation and maturity moment. There is reason for so, society live connected and technology works. The constant offer of new music reaching the consumer is very attractive. And besides, there is room for a physical market with still things to say". And he goes on saying that "although the greatest merit is to be credited to the creative moment Spain is going through, and also to our common language, Spanish, in a perfect alliance with the Latin market. Great hits in Spanish are abundant in the sales charts and they rise a great deal of interest. With this breeding ground, it is not strange that paid streaming subscriptions increase, as results do. And concluded saying that "there remain to be solved some issues as important and objective for the industry as the implementation of the new copyright directive, which will allow to put back in track problems that affect us like the value gap, as the consumption of video streaming, which keeps being massive and mainly ad-supported, represents as little as 13.9% of all the streaming revenues, compared to 15.9% during the same period of 2018, something that we must revert".