Major labels benefit from non-music sales-report
June 30th, 2008 | by admin |LONDON, June 30 (Reuters) - British record companies sawrevenues from non-music sales rise sharply in 2007, partlycompensating for declining recorded music sales, a report saidon Monday.
The BPI (British Phonographic Industry), which representsthe country’s recorded music business, said non-music salesincreased by 13.8 percent in 2007 to 121.6 million pounds ($242million) from 106.9 million in 2006.
The growth reflected the expansion in the use of music inadvertising, film and video games and from merchandising,touring and sponsorship deals, the BPI said.
Although physical and digital music sales account for thevast bulk of labels’ revenues (1.4 billion pounds in 2007),”there are encouraging signs that these new revenue streams willcontribute substantial additional revenue in years to come.”
The shift away from recorded music sales, which arestruggling to cope with online piracy and alternative choiceslike video games, has encouraged some of the world’s biggest popstars to sign all-encompassing contracts.
The “360 degree deals” cover all aspects of the businessrather than just new music, and when Madonna left label WarnerMusic Group to sign such a deal with tour promoter Live Nationlast year industry experts expected others to follow suit.
U.S. singer Prince gave away an album for free with aBritish Sunday newspaper last year in a move designed to promotehis extended tour, while Coldplay recently allowed people todownload a single from their new album at no cost.
“Today’s record business is unrecognisable to that of fiveyears ago,” said BPI chief executive Geoff Taylor. “Labels haverapidly evolved into digitally literate businesses that generatesignificant revenues through licensing.”
The global recorded music market consists of hundreds ofindependent labels and four major groups — Universal, Sony BMG,Warner and EMI. (Editing by Keith Weir) (To read more about our entertainment news, visit our blog “FanFare” online at blogs.reuters.com/fanfare)
