Music Production Evolution: The Rise Of Digital vs. The Vinyl Revival

THE RISE OF DIGITAL VS The Vinyl Revival THE DECLINE OF PHYSICAL MUSIC ALBUMS SOLD (Units Sold) 2005 2006 2007 2008 2009 2010 2011 2012 2013 000000000 598.9 million 5005 million 450.5 million 3626 million 373.9 million 326.2 million 295.5 2487 206.4 million million million THE RETURN OF THE VINYL LP IN THE US 2013 US ALBUM SALES 1993-2013 VINYL SALES 165 million >0.5 million million 1993 4.55 million 2012 118 million CD Digital LP million 2013 THE VINYL LP IS BACK! 7m 6m 5m 4m 3m 2m Im 1995 1998 2001 2004 2007 2010 2013 VINYL SALES IN THE US FROM 1993 – 2013 (in million units) THE CONTINUED GROWTH OF RECORD STORE DAY 2008 2009 2010 2011 2012 2013 2014 +0.4% +21% +12% +39% +27% +59% +133% VINYL SALES INCREASES (COMPARED TO PRIOR WEEK) Despite the massive growth of digital there is still a big demand for vinyl and turntables. And people still want to pay big bucks for the vinyl from Record Store Day: JACK WHITE LAZARETTO CAKE LIVE, B-SDES & RÁRITIES KING GIZZARD SPLATTERED US $649.99 US $450.00 US $379.33 ebay ebay ebay Record Store Day and the re-growth of vinyl has even inspired a revival of cassettes in Cassette Store Day: cassettestoreday.co.uk OWNING Vs STREAMING Although the last publicly available survey was conducted in Nov 2011, in the UK there is still a strong need to own music rather than just rent or stream it. "It's really important to me that I own music rather than rent or stream" (% agree or disagree) 2009 2011 12% 16% 26% 62% 18% 65% Don't Disagree Know Don't Disagree Know Agree Agree THE RISE OF DIGITAL MUSIC 5.9 5.6 5.1 4.6 4.4 2.9 2.2 1.2 Jololojo 0.4 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GLOBAL DIGITAL MUSIC REVENUE 2004 – 2013 (IN BILLION U.S. DOLLARS) STREAMING GIVES NEW BOOST TO DIGITAL MUSIC GROWTH 2008 vs. 2013 DOWNLOADS STREAMING (subscription) STREAMING (ad supported) +54% +367% +293% MOBILE OTHER DIGITAL -72% +48% DISTRIBUTION OF DIGITAL MUSIC REVENUE WORLDWIDE (2008 vs 2013, BY FORMAT) 100% 100% 75% 75% 50% 50% 25% 25% 2008 2013 Downloads Subscription Ad Supported Streams Mobile Other CONSUMER AWARENESS OF LICENSED SERVICES IN IO SELECTED MARKETS IN 2013 (%) YouTube iTunes Amazon MP3 Spotify Deezer Vevo 91% 73% 61% 59% 40% 38% DIGITAL USER STATISTICS (2014) You Tube I BILLION UNIQUE USERS VISIT YOUTUBE EACH MONTH 800 MILLION ITUNES ACCOUNTS I0 MILLION PAYING SUBSCRIBERS HIDEEZER 5 MILLION PAID SUBSCRIBERS SOURCES: www.statista.com/statistics/292262/global-digital-muslc-revenue-format www.lfpl.org/downloads/Digital-Music-Report-2014.pdf www.youtube.com/yt/press/statistics.html www.digitalmusicnews.com/permallnk/2014/04/24/Itunes800m www.statista.com/statistics/244995/number-of-paying-spotify-subscribers en.wiklpedla.org/wlkVDeezer www.statista.com/chart1465/vinyl-Ip-sales-In-the-us www.slate.com/blogs/future_tense 2014/OV06Minyl_Ip_sales_hit_22_year_record_In_2013_digital_music_sales_down_chart.html www.statisticbraln.com/music-albums-sales-statistics en.wikipedla.org/wikI/Music_Industry www.statisticbraln.com/top-sellling-music-artists-of-all-time www.bpl.co.uk/assets/files/MusicConsumption.pdf www.bbc.co.uk/news/entertalnment-arts-27159534 www.usatoday.com/story/llfe/musld 2013/04/24/record-store-day-boosts-vinyl-sales/2110575 Superfi www.superfi.co.uk SOLD SOLD SOLD