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NEWSLETTER MAYO 2018

IFPI LATIN AMERICA

NEWSLETTER MAY 2018

IFPI LATIN AMERICA

Global recorded music revenues increase by 8.1% in 2017

In 2017, the global recorded music market grew by 8.1%. This was the third consecutive year

of global growth and one of the highest rates of growth since IFPI began tracking the market in

1997. Revenues increased in most markets and in eight of the global top 10 markets. Driven by

fans’ engagement with streaming -especially paid subscription audio streaming - digital revenues

now account for more than half (54%) of the global recorded music market. Total streaming revenues

increased by 41.1% and, for the first time, became the single largest revenue source. By the end of

2017, there were 176 million users of paid subscription accounts globally, with 64 million having been

added during the year. However, to put this recovery in context, total industry revenues for 2017 were

still just 68.4% of the market’s peak in 1999. Against the backdrop of a global market that had endured

15 years of significant revenue decline, record companies are working to fuel the recent return to

growth and ensure music creators receive fair value.

 

The Latin American recorded music market grew by 17.7% in 2017

Recorded music industry revenues rose by 17.7% in Latin America (an increase of US$ 106.9 million) in 2017 -from US$ 602.5m in 2016 to US$ 709.4m in 2017. Each of the ten Latin American markets tracked by IFPI, for which year on year comparisons were possible, reported:

+ performance rights revenue increase

+ total streaming revenue increase

+ paid subscription audio streaming revenue growth

+ physical revenue decline

+ total music market revenue increase

In 2017, the Latin American music market saw a sharp decrease in physical revenues (-41.5%); significant digital revenue growth, mostly driven by increased streaming revenues (+37.2%), and higher performance rights revenues (+16.3%).

 

 

 

Music licensing companies (MLCs) in charge of collecting public performance rights in Latin America and the Caribbean on behalf of artists and record companies worldwide saw a 16.3% increase in their local currency revenues in 2017, to US$ 230 million

Due to appreciation of local currencies compared to the US dollar, revenues

in current dollars showed a 17.2% increase versus 2016.

Revenues from broadcaster’s amount to 47% of that total, showing a 9.5% growth.

Revenues from commercial venues grew by 21.5% and account for 51% of total revenues.

MLC costs went up by 13.7%, while the amount available to distribute grew by 17.1%.

According to data published by ECLAC (www.eclac.org) in its report of 14 December 2017,

the region shows a 1.3% increase of its gross domestic product (GDP) in 2017, leaving behind

two years of negative growth in the regional economy.

 

 

IFPI collaboration with Peruvian copyright office sees shutdown of three major music pirate sites

IFPI, together with Peruvian copyright office, Indecopi, successfully shut down three major music piracy sites (MELODIAVIP.NET, FOXMUSICA.ME, MP3JUICES-DOWNLOAD-FREE.COM) based in Peru. The sites had over 130,000 unique monthly users and were providing an interactive streaming and download platform for Latin and US Latin music content. IFPI’s Latin America office has been supporting Indecopi to develop an efficient framework to investigate and process internet-related piracy cases, providing training and contacts via our global network.

 

 

Performance rights revenues grew by over US$ 1 million in Guatemala and the Dominican Republic in 2017

Aginpro and Sodinpro—Guatemala’s and Dominican Republic’s collective

management organizations, respectively—have for the first time ever collected

over US$ 1 million in each performance rights revenues. Both organizations

have experienced steady revenue growth in the last few years. We expect this

positive trend to continue in 2018 and in the short term, with additional performance

rights revenue growth coming from users adding value to their businesses through

music, including public venues, broadcasters, and paid television companies.

 

 

700,000 public venues in Latin America compensate artists and producers for the use of music

By the end of 2017, the number of public venues acquiring a recorded music license from the 17 active MLCs in Latin America and the Caribbean rose to 700,000. During that year, MLCs continued to license premises open to the public -including party venues, stores, shopping malls, gyms, restaurants, bars and hotels -licensing 32,000 more venues than in 2016.

IFPI welcomes the growing number of businesses compensating artists and producers for the use of their music recordings and works to foster understanding and negotiations between rights holders and clients to make the non-recognition of performance rights the exception rather than the rule.