According to the British Phonographic Industry, UK consumers are continuing to switch from buying CDs to digital downloads and streaming services.
They report that revenues from digital music exceeded those of physical sales for the first time in the first quarter of 2012.
The new report shows that digital music accounted for 55.5% of UK music revenues between January and April this year, as industry revenues grew by 2.7 per cent to £155.8 million.
The BPI’s digital music revenues are based on downloads, subscriptions and ad-supported music services, which, when combined, saw nearly a 25 per cent rise in income to reach £85.6 million. However, physical formats fell by 15.1% to £69.3 million.
Today’s report marks a turnaround in music sales, after the BPI announced at the start of the year that whilst digital music revenues had grown 26.6% in 2011, the industry was still in decline.
Commenting on the Q1 results, BPI Chief Executive Geoff Taylor said,
“This is 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 – demand for physical CDs remains strong in the UK, especially in Q4. However, the creativity, investment and digital expertise of the British music industry point the way forward for growth in the UK economy”.
The switch from physical to digital music in Britain echoes the United States, where downloading and streaming accounted for more than half of record industry revenues throughout 2011.
Earlier this month, the music chart industry launched the UK’s first Official Streaming Chart, showcasing the most popular music from streaming services, including Spotify, Deezer and other subscription platforms.
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