Executive summary

Today we are at a crucial moment in the evolution of recorded music. After two decades of almost uninterrupted decline, 2015 witnessed key milestones for recorded music: measurable revenue growth globally; consumption of music exploding everywhere; and digital revenues overtaking income from physical formats for the first time.

These are positive metrics of accomplishment. They reflect an industry that has adapted to the digital age and emerged stronger and smarter.

This year’s IFPI Global Music Report is not a story of “job done”, however. The recovery is encouraging, but it comes after nearly two decades of decline during which recorded music revenues slumped by over a third.

To understand our industry’s needs for the longer term requires us to analyse what brought us to the inflection point where we find ourselves today.

First, the music industry’s return to growth has not happened by accident. It is the result of tireless work and adaptation. Record companies have quite simply transformed to survive and thrive.

They have embraced all forms of digital distribution, giving consumers ever expanding choice of music offerings.

Record labels have also kept their focus on their core mission – investing in artists, creating value for music talent and bringing music to a global audience. And they are working smarter and more creatively, using the amazing potential of streaming to better understand and engage with consumers.

As the four case studies included in this report demonstrate, the digital world has made labels more, not less, important in generating value for artists.