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Global Recorded Music Sales in Secular Decline
1. Global Recorded Music
Sales in Secular Decline
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
January 2014
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Augustine Fou
2. Digital Music Sales Decline
Overall for the full year 2013, digital
track sales fell 5.7% from 1.34 billion
units to 1.26 billion units while digital
album sales fell 0.1% to 117.6 million
units from the previous year’s total of
117.7 million, according to Nielsen
SoundScan.
Overall, album sales suffered an 8.4%
decline, dipping to 289.4 million units
from nearly 316 million units in 2012.
The CD declined 14.5% to 165.4
million units, down from 193.4 million
in the prior year, while vinyl continued
its ascension rising to 6 million units
from the 4.55 million the format tallied
in 2012. That means vinyl is now 2% of
album sales in the U.S; digital albums
comprise 40.6% and the CD is 57.2%
and cassettes and DVDs 0.2%.
Source: Billboard Biz Jan 3, 2014
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Augustine Fou
3. Subscription vs Download
As more people stream
music, fewer will buy and
download digital tracks or
albums.
Source: Ipsos MediaCT Feb 2013 via The Atlantic
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Augustine Fou
4. Global Recorded Music Sales
Increase in digital
sales and
performance
rights (licensing)
is not enough to
offset the overall
secular decline.
Source: ifpi, August 2013 via Music Industry Blog
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Augustine Fou
5. Global Recorded Music Sales
Increase in digital
sales and
performance
rights (licensing)
is not enough to
offset the overall
secular decline.
Source: ifpi, March 2011 via AllthingsD
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Augustine Fou
8. YoY Growth of Music by Type
Mobile music is a good proxy for streamed music where neither album
nor individual track were purchased.
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Augustine Fou
10. Vinyl Sales Up 30% in 2013
Source: Nielsen
Soundscan, October
2013
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Augustine Fou
11. Dr. Augustine Fou – Digital Consigliere
“I track trends and advise clients on
getting „on-trend‟ or more ideally getting
out in front of them to maximize
competitive advantage.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
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@acfou
Augustine Fou