Latest record industry figures confirm 4 years of consistent revenue growth – if you look at the right numbers.
Tales of the music industry’s demise appear to have been vastly exaggerated. Last week the Recording Industry Association of America (RIAA), an industry group of major record labels, published its revenue figures for 2016. So how do they look? Quite different from the “value gap” the music industry is allegedly experiencing. Instead, RIAA data shows that the cost savings of digital distribution are passed on to consumers and labels alike, and labels are seeing increasing growth as a result.
In the RIAA’s own words, the wholesale value of music is the “better metric of the revenues that are going to music labels for sales and listening” (Josh Friedlander Sr. VP Strategic Data Analysis for the RIAA, here). In other terms, wholesale value takes into account all revenues paid to record labels – from physical sales, streaming and other sources.