Music sales tanking in SA
Sales of recorded music on physical media in South Africa is shrinking faster than the average global decline, the latest statistics from the International Federation of the Phonographic Industry (IFPI) show.
While there is strong growth in digital music sales in South Africa, the IFPI’s Recording Industry in Numbers 2014 report shows it is not enough to offset the large decline in physical music sales over the last 5 years.
CD sales, which make up the bulk of physical recorded music sold in South Africa, shrank from 15.9 million units in 2012 to 12.2 million in 2013. In 2009, CD sales in South Africa stood at 17.1 million.
Globally, overall music sales decreased by 4% from 2012 to 2013, while in South Africa overall music sales are down by almost 12%.
The graph below illustrates the dramatic decrease in music sales trade revenues in South Africa.
IFPI defines trade value as record companies’ revenue, net of discounts, returns and taxes. Promotional goods, non-music related or non-recording artist related products are excluded.
Music sales in South Africa by format (source: IFPI)
The IFPI also provides a breakdown of digital sales by format which shows that along with South Africa’s 106.8% growth in digital sales, there was also a dramatic shift in the local market.
Digital sales from sources classified as “other” went from 4% of the pie in 2012 to 19% in 2013. Ad-supported revenues also increased its share from 7% to 12%, while mobile increased from 18% to 21%.
Subscription services also burst onto the scene and now make up 6% of total digital sales in South Africa. This is not too surprising though, as music streaming services only started officially launching in South Africa from August 2012.
Single track and full album sales now make up a much smaller fraction of the total digital sales in South Africa.
The graph below illustrates how South Africa’s digital music landscape has changed in the past year:
Digital music sales market share in South Africa (source: IFPI)
IFPI World Rankings
Further illustrating the decline of music sales in South Africa is the IFPI’s world rankings, which arranges countries by the percentage of global music trade revenues contributed.
Until 2007, South Africa showed a steady increase in music revenue coming from the country in contrast with much of the rest of the world where sales were struggling.
Until 2010, South Africa had been climbing the IFPI World Rankings physical sales chart and came 14th of the 51 countries ranked.
In the 2013 IFPI World Rankings, South Africa is placed 17th for physical sales and 26th overall.
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