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Ditto Blog

How Digital Sales Have Affected The Music Industry in 2011

2011 has been a busy year for digital sales in the music industry. To recap...

- Spotify Launch in USA, go mobile and launch vouchers into stores like Morrisons and Boots.

- iTunes launch iTunes Match

- Mobile networks make investment in their own stores Ercom and Muuve

- Google Launch Google music

- YouTube expands ad-based monetization

With arguments still surfacing about streaming services and revenue streams, how has this affected the music industry financially?




1. Physical music sales drop 14.1% to £513.8m

2. Online Sales grew 24.6% to £261m

3. Digital album sales grew 43.2% to £117.8m

4. Streaming models grew 47.5% to £24m


5. Ad-supported sites dropped 1.4% to 10.7m

6. Total Music revenue (excluding broadcast and public performance licenses) was £795.5m (3.4% down)

Geoff Taylor - BPI Chied Executive has this to say - "It is highly encouraging for the long-term prospects of the industry that the pace of digital growth continues to accelerate. British labels are supporting a wide range of innovative music services and music fans are embracing digital like never before"


So as digital trade increases year on year it shows us that people are willing to pay for content after years of piracy due to the lower cost, perpetual access and the ever expanding variety of legal online sources.

For further statistics of the global music industry economy check out our blog of the 2011 IFPI figures here.

*Figures taken from the BPI for music sales in the UK, 2011