Online music services such as Spotify and iTunes boosted the royalties paid to UK artists last year in a further sign that streaming and download services are positively contributing to the music market.
Online royalties jumped 45.3% last year, helping to offset a 13.3% fall in royalties from CD sales and leading to total royalties rising 3.2% year on year to GBP635.3m (USD1.08bn), according to figures from representative body, PRS for Music. But despite this growth, the royalties generated by online services remain relatively small at GBP38.5m (USD61.7m), compared to the GBP101.6m (USD162.8m) from CD sales. Nevertheless, with CD royalties continuing to fall, legal subscription services are expected to play an increasingly important role in the way artists and song writers make music.
“The licensed digital market is now delivering a significant income stream for our members,” says PRS for Music CEO Robert Ashcroft. “This goes some way to replacing revenues lost from the declining CD market, although online piracy continues to be a problem.”