Today, the International Federation of the Phonographic Industry released its annual report, detailing what happened in the music industry worldwide in 2015.
The report is subtitled “Music Consumption Exploding Worldwide.” Global music revenue grew 3.2% last year. Digital overtook physical for the first time ever, now making up 45% of global revenue. Global digital revenue was up 10.2% in 2015. Streaming revenue is up 45.2%, with streaming now accounting for 43% of digital sales. On the other hand, physical revenue was down 4.5% in 2015, while download revenue shrank 10.5%. The growth of the worldwide music industry, the first in nearly 20 years, is contributed to the industry adapting to the changing world and embracing the digital market.
Japan is still the #2 market in the world (behind the US), and it accounts for 76% of the Asian market’s entire value. The Japanese market grew by 3% in 2015, after 2 years of significant decline (16.7% in 2013 and 5.5% in 2014).
Physical accounted for 75% of revenue in 2015, down 3% from 2014.
Streaming is soaring, but from a low base. Streaming made up less than 5% of the Japanese industry’s revenue last year. Streaming is seen as a opportunity for growth. Stefan Blom, Spotify’s chief strategy officer and chief content officer, said, “We are planning to launch in more markets in 2016 and beyond, with Japan among those we are looking closely at.” It was also noted that Google Play Music expanded to Japan in 2015.
The report also listed the current digital music services in Japan: Amazon, Apple Music, AWA, Beatport, BeeTV, Best Hit J-Pop, clubDAM, D Hits, d music, Dwango, FaRao, Google Play, Groove, GyaO!, iTunes, KKBOX, Konami, Line, Lismo, mora, mu-mo, Music Airport, Music.jp, Musing, MySound, Naxos, NOTTV, Oricon ME, Recochoku, Sumaho De Usen, Tsutaya Musico, Utapass, UULA, and YouTube.
At the end of the report, there was an ad for KKBOX, titled “Konichiwa Japan!: Achieve your loftiest dreams in Asia.” The ad spoke of the service’s success in Asia. It also said that not only will they bring the world’s music to Japan, but that they will also introduce Japanese artists to a larger audience across Asia.
The full report can be read here.