Published Mar 15, 2010Maybe the music industry isn't doomed after all? This morning (March 15), Reuters reported that British musicians and music publishers earned 623 million pounds ($944.8 million) in royalties last year, marking the first time since the sale of digital music that its revenue has compensated for the drop in CD and DVD sales.
Not surprisingly, PRS for Music, who compiled the data and is responsible for distributing royalties for 65,000 British musicians and publishers (and blocking YouTube from hosting a number of British music videos) is hesitant to call the event a landmark 180 for the music industry.
PRS for Music chief executive Robert Ashcroft acknowledged the feat, claiming that "we remain cautious as to whether this represents a true turning point," but optimistically added "the next decade does, however, promise further growth in earnings from the legal digital market as well as the use of British music overseas."
In 2009, British online revenues grew 12.8 million pounds ($19.6 million) while the traditional CD and DVD market dropped 8.7 million ($13.3 million). The overall music market fell slightly, due to drops in both ad revenues and the ringtone market.
Let's hope the North American music industry makes similar findings, drop in the ringtone market hopefully included.