Streaming music hits 74% of music sales in Spain during the first half of 2018 according to Promusicae, the Spanish record industry association. Sales of all music generated revenues of Euro 107.6 million during this period up only 0.4% on the same period in 2017.
In common with the US and most western European countries, the growth in streaming has been accompanied by a growth in paid for subscription services which have increased by 53%. Ad supported streaming which generated €21.8 million in the first half of 2017 declined to €8.4 million in the same period this year, a reduction of 61.7% largely driven by the unwillingness of record companies to reduce royalties for free streaming services.
French music streaming grew by 39% in first half of 2018
Austrian music streaming grows by 61% in first half of 2018
Streaming overtakes CD sales in Germany
Digital downloads continued to decline, dropping 23% from €5.3 million to €4.1 million.
Commenting on the increase of paid for subscriptions to services like Spotify, Apple Music, DEEZER, Napster and Tidal, from €34.6 million in sales during the first six months of 2017 to €52.8 million in the period just ended, Antonio Guisasola, president of Promusicae, said, ‘One of the priorities of our sector has been to promote the benefits of paid subscriptions in the new music services and it is comforting to see such positive results. Consumers already assume as a normal thing to pay a small monthly fee to have access to all available music and enjoy it to the fullest.’ He added, ‘we believe it is a consumption model that is on track and that will be the gateway to revenue recovery for the industry.’
Snr Guisasola, in common with other record industry leaders, expressed concern over the use of music videos on platforms such as YouTube, noting the modest growth of 6.9% from €10.8 million to €11.5 million in the reporting period. ‘Both Promusicae and the International Federation of the Phonographic Industry (IFPI) are calling for an end to this value gap according to which billions of video streams only translate into 15.9% of total streaming revenue.’
Vinyl LP sales continue to be popular increasing sales from €4.5 million to €5.1 million this year and represent 4.7% of total music sales. CD sales continue to decline, dropping from €27.1 million to €22 million in the same period. In the same period, the music video rose 54.2%, thanks largely to the success of sales of the DVD of Operación Triunfo 2017, El Concierto.
The Rise and Fall of the Compact Disc
The digital share of 73.5% puts digital adoption in Spain well ahead of the global trend which averages 55 % according to the IFPI Global Music Report 2018.
