Revenues from video stream incl. Youtube now accounts for less than 1.5% of the total revenue from the sale of recorded music.
Revenues from streaming services such as Spotify, Wimp / Tidal and Apple Music is still the major drivers behind the significant rise in music sales so far this year. During the first half of 2016 music has been sold for 333 MNOK in Norway, compared to 309 MNOK for the same period last year, an increase of as much 7.8%.
Recent figures from the IFPI Norway shows that streaming continues to grow in Norway and revenue from streaming has gone up by 30 MNOK from 248 to 278 MNOK, from H1 2015 to H1 2016. Similarly, increase from 2014 to 2015 was 28 MNOK. Revenues from the various streaming services now account for 83% of the music sales the first half of 2016, compared to 80% of sales for the same period in 2015.
It is worth noting that the revenues from video stream incl. Youtube remains very low, accounting for 4,7 MNOK for the first half of 2016, compared to 4.9 MNOK for the first half of 2015. Of the total streaming revenue, revenues from video stream incl. Youtube is in total less than 2%.
Physical sales continue its recovery first half of 2016. So far this year, physical products has been sold for 43 MNOK, compared to 40 MNOK for the same period last year. Of total sales, the physical sales reach 13%, which is the same level as last year. Vinyl is still experiencing strong growth, and sales increased by 4.3 MNOK, from 9.9 MNOK in 2015 to 14.2 MNOK in 2016, an increase of as much as 43%. Vinyl now accounts for 33% of sales of physical products, compared to 24% for the same period last year. Of total sales vinyl now account for more than 4% of the sales.
It is very pleasing that sales of Norwegian music continues to increase. On streaming services alone, the local share reach 23%, against 22% for the same period last year. Total for all formats, local share is 25%. Norwegian music is considered music released by the Norwegian record companies.
Sales of downloads is significantly reduced, from 21 MNOK H1 2015 to 14 MNOK H1 2016. This is a decline of 32%, and downloads now account for 4% of the turnover of music in Norway, compared to 7% for the same period last year.
Marte Thorsby, CEO of IFPI Norway, said: "It is positive that the sale of music continues to grow significally in Norway. A total increase of 7.8% is among the international elite. Continued revenue growth in streaming services shows that the market is still not saturated and we believe in continued increase in sales in the years to come. Our concern is that the income from the video stream incl. Youtube is still so low. Knowing that 25% of the population daily use YouTube, it is far from reasonable that they only pay a fraction of what competitors Spotify, Tidal and Apple Music pays to artists and record companies. It is necessary that we get a legal amendment that secures fair conditions of competition between these players. "
Managing Director Marte Thorsby