The year 2012 saw the music business break through a 12-year losing streak. The news came from the International Federation of the Phonographic Industry (IFPI) on February 26, 2013. According to the IFPI a 0.3 percent rise in revenue could be accounted for in 2012, this pushed the total revenue of the industry to $16.5 billion.
The highest growth was seen by the digital sector, which covered the loss of physical sales. In the year 1999, sales dropped steadily down from $28.6 billion, leaving record label bosses in a state of panic. One of the main causes of the problem was illegal downloads. People had also refused to accept the digitalization of music as well, this trend is now changing.
Edgar Berger, who is the president of Sony Music Entertainment’s international section said, “Well the reality is, digital is saving music. I absolutely believe that this marks the start of a global growth story. The industry has every reason to be optimistic about its future.”
Various subscription services such as Deezer and Spotify also registered minor victories and are expected to rake in 10 percent of the market share soon. As people around the world embrace the digitalization of music, sales are not country-specific any more. This results in a win-win situation for both, the recording artist and the recording companies.