In extremely surprising news today, the International Federation of the Phonographic Industry (IFPI) has reported that global music revenues have increased by 0.3 percent over 2012 reaching US$16.5 billion. The last time the music business grew was way back in 1999 and global music revenue had been steadily declining since then.
At the same time, industry analysts from the NDP Group have reported in their Annual Music Study 2012 that “illegal music file sharing declined significantly in 2012” in the US. According to NPD the number of consumers using P2P services to download music fell 17 percent in 2012. Similarly, it said that the volume of “illegally downloaded music files from P2P services also declined 26 percent.”
This effect has probably been caused by the rise of legal and free streaming services such as Spotify which have come to the fore over the course of the last year. At the same time, according to The New York Times, digital revenue has finally increased to a point where it can offset the declining sales of CDs.