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IFPI Norway report: Physical sales up 30%

By Erlend Buflaten Posted: 01. Mar, 2016

Managing director of Music Norway says these numbers confirm that the Norwegian music industry is going strong

And streaming now accounts for more than 3/4 of the total market

Tuesday IFPI Norway published their annual report with total sales numbers for 2015. It shows that total music sales in Norway was worth 646mnok ($74,3m.) in 2015, a 6,9 percent increase from 2014 when it was 605mnok ($69,6m.).

Key numbers

  • Streaming now accounts for 77,4 percent of music sold
  • Physical sales increased 30 percent from 83mnok to 108mnok
  • Streaming inreased 9,7 percent from 456mnok to 500,3mnok in 2015
  • 1,5 million Norwegians are paying for streaming services
  • Download sales down to 5,8 percent versus 10,9 percent in 2014
  • 26,3 percent of music sold and streamed is Norwegian, versus 22 percent in 2014 (and more and more are singing in Norwegian as well)

2015 marks the first year streaming generated a turnover over 500mnok and with it sees streaming increase its already large market share in Norway – now accounting for more than 3/4 of total music sold.

Managing director of Music Norway Kathrine Synnes Finnskog says there’s an optimism in the Norwegian music indsutry.

– These numbers confirm that the Norwegian music industry is going strong.

–  There is an optimism in the industry today. Instead of fighting it we’ve adapted to new revenue models and see more and more great artists coming up every day. With it we see the industry as a whole growing, giving businesses the opportunity to continue to build a stronger industry and develop new acts and artists.

She’s also glad to see the share of Norwegian music growing domestically.

– The competition in the global market today is massive, but finally we see a growth  in the market share with over 1/4 of music bought and consumed in Norway are from Norwegian acts.

Total turnover and digital turnover between 2010 and 2015 in MNOK. Facsimile IFPI Norway's Annual Report

Also worth noting is the fact that physical sales increased impressive 30,4 percent from 2014 to 2015, putting a stop to the ongoing trend of year-by-year physical sales decline. As we’ve seen the last years, vinyl has seen a major increase in sales with 2015 yet another year for a massive sales increase in CD sales turned the numbers from red to blue, adding to a total physical sale of 108,4mnok, up from 83,1mnok in 2014.

Vinyl has a turnover of 26,1mnok versus 15,5mnok in 2014 an increace of no less 68,9 percent. CD sales increased by 26,4 percent from 62,3mnok to 79,3.

IFPI states that the big increase is due to several factors: more titles are relased on vinyl and it has been several big CD campaigns in 2015, specially targeted towards supermarkets. In addition, the statistics have added a new physical distributor, Border Music Norway.

Huge difference in streaming revenue

Of a total of 500,3mnok in turnover from streaming services, 490,1mnok comes from audio streaming services (Spotify, Tidal, Apple Music). Only 2 percent of total streaming revenue comes from video streaming services such as YouTube

Directing manager of IFPI Norway, Marte Thorsby is certain we haven’t seen the top of streaming yet.

– We have seen an annual increase in streaming since the introduction of the format in 2009, and with a growth from 2014 til 2015 of 44 mnok, equal to 9,7%, we obviously still haven’t reached the top. More surprisingly is the growth in physical sales, in total a growth of 30%. However, in figures, the growth of physical is in total around 25 mnok, which is far lower than the increase in streaming.

Thorsby doesn’t expect physical sales to decline in 2016.

– The growth in physical sales is due to a number of factors, such as more physical releases in general, and upgoing trend for vinyl as a format and as to CD, large campaigns towards supermarket chains has had great success. I am not sure that we will continue to se an annual growth of 30%, but I will not be surprised if the physical format will stay stabile or continue the growth in 2016.

 

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