Streaming caused Argentinian music industry to grow nearly 35%

By Estudio Chaloupka

The International Federation of the Phonographic Industry (IFPI) recently released its Global Music Report 2016 (Global Music Report: Music consumption exploding worldwide), featuring a key milestone: in 2015 digital became the primary revenue stream for recorded music, overtaking sales of physical formats for the first time.

Total industry revenues increased 3.2%, vaulting up to US$ 15 billion, leading to the industry's first significant year-on-year growth in nearly two decades, as digital revenues overtook physical mediums: digital revenues now account for 45% of total revenues, compared to 39% for physical sales. IFPI's report also noted a 10.2% increase in digital revenues, representing US$ 6.7 billion of the industry’s growth, with a 45.2% increase in streaming music revenues.

Latin America was, for the fifth consecutive year, the region with the highest level of growth in recorded music revenues (+11.8%). Digital revenues rose 44.5%, more than four times the global average, and streaming revenue increased by 80.4%. The region’s two largest markets remain Brazil (-1.8%) and Argentina, with a total industry revenue increase of 34.8%.

The outstanding growth of Argentina –vis-à-vis other countries of Latin America- may result from the fact that the Argentine market has nearly 20 licensed digital music services: Apple Music, CIENRADIOS, Claro Música, Daily Motion, Deezer, Google Play, Groove Music Pass, Guvera, iTunes, Larala, Microsoft Music Store, Movistar, MTV, Napster, Personal, Spotify and YouTube.
“Today it is more important than ever that all music rights holders campaign together to protect the future of our musical industry and our young musicians", said Spanish tenor Plácido Domingo, chairman of IFPI, a non-profit organization based in Switzerland that represents the interests of the recording industry worldwide.