Digital-Music-Report-2014

A diverse global marketGeographically, the world music marketis highly diverse, with markets growing atdifferent speeds and favouring differentconsumption models. This is borne outby consumer research conducted byIpsos MediaCT for IFPI in November2013 (see Figure 3). It shows contrastingpreferences for service types in Germany,UK and US (where downloads are morepopular) and in France, Italy and Sweden(where streaming is the favoured model).A mixed economy ofrevenue streamsAmid the wide variations, there are threeperceptible groups of markets: first,countries in northern Europe, wherestreaming and subscription services aredominating; second, the major marketsof North America and Europe wherestreaming is growing fast but downloadscontinue to deliver the major revenue;and third, a swathe of other countriesincluding emerging markets, such asBrazil and Mexico, where both downloadsand ad-supported streaming are growingrapidly from a lower base.Figure 2: Digital revenue breakdown by format, 2008–201326%6%3% 1%8%1%64%Downloads Mobile SubscriptionAd-supported streams OtherSource: IFPI200819%5%2013Subscription and ad-supported streaming serviceshave grown from 9% to 27% of digital revenues inthe last five years.Figure 3: % Internet users using music subscriptions* / download servicesin past 6 months67%4773693215232722331221Paula Fernandes Photo by Guto CostaSweden France Italy USA UK GermanySubscriptions DownloadsSource: Ipsos MediaCT *Also includes free users of subscription services9