Has the Record Industry Turned it Around?

For the first time since 1999, the record industry has seen growth. The first revenue increase in 15 years can be tied to a 9% increase in digital download sales.  Perhaps the record industry has figured out how to monetize digital record sales.  Approximately 10% of digital revenues are made up of paid subscriptions through avenues such as Pandora and Slacker radios. The entire global industry profited at $16.5 Billion in 2012, yet insiders still complain that growth could be more robust if not for the illegal downloading community.  Hip hop and R&B artists drove much of the revenue in 2012, including top sellers Flo Rida, Nicki Minaj, Adele, Rihanna, and Pink.  

  

Global Singles Best Sellers in 2012

	Artist	Title	Total (m units)
1	Carly Rae Jepsen	Call Me Maybe	12.5
2	Gotye	Somebody That I Used To Know	11.8
3	PSY	Gangnam Style	9.7
4	fun.	We Are Young	9.6
5	Maroon 5	Payphone	9.1
6	Michel Teló	Ai Se Eu Te Pego	7.2
7	Nicki Minaj	Starships	7.2
8	Maroon 5	One More Night	6.9
9	Flo Rida	Whistle	6.6
10	Flo Rida	Wild ones	6.5

Source: IFPI