The British music industry is seeing a slow but steady increase in digital revenue, according to a report from the British Phonographic Industry.
Online streaming and paid downloads revenue increased from £127.8 million in 2008 to £188.9 in 2009. That's a jump of almost 50% in digital income.
The British Phonographic Industry report said digital music sales now make up 20% of all music revenue.
Ad supported services like Spotify, we7, Last.fm and YouTube grew their contribution to industry income by 247% to £8.2m. This looks to be a big part of the future.
Some music industry leaders still think that's not good enough, looking back to the good ole days when the big labels owned the game and everybody was buying their high-priced CDs.
“But let’s put it in broader perspective: 2009’s modest result follows a five-year drop in annual income, and total industry income has not exceeded £1bn since 2006. The CD continues to show greater resilience than many predicted – it is an excellent digital product. The pace of growth of new digital services is encouraging, but the size of the market continues to be constrained by competition from illegal downloads,” said Geoff Taylor, BPI's Chief Executive.