During the first quarter of 2012, Digital music revenues have accounted for 55.5% of UK record music trade revenue according to figures released by BPI. Significantly, this is the first time Digital sales have overtaken physical music revenue sales. The growth of digital sales has helped to offset a decline in physical sales, and boosted overall record industry revenues by 2.7% to £155.8m (Q1 2012).
This increase is attributed to rapidly increasing sales of digital format albums, which rose by a staggering 22.7% to £35.9m; and increasing revenue sources from subscription and ad-supported services as well as paid-for subscription services.
BPI Chief Executive, Geoff Taylor has described this as “a significant milestone in the evolution of the music business. UK record labels have embraced digital to their core, supporting innovation and licensing more new online and mobile services than any other country. As a result, the industry’s prospects for growth look brighter than for several years. We will need to see this trend repeated for several quarters to say we have turned the corner”.
For more details see http://www.bpi.co.uk/press-area/news-amp3b-press-release/article/digital-revenues-overtake-physical-in-uk-recorded-music-market.aspx
