The much anticipated 'Global Music Report' released by the International Federation of the Phonographic Industry (IFPI) shows the music business is truly back in business. Following over a decade long demise of the Global Music Business, the IFPI report records a second year of steady growth dominated by the digital streaming market.

CEO of the IFPI Frances Moore comments "The Global recording industry is seeing modest growth after more than a decade of significant decline".. "Years of investment and innovation have begun to reward an industry that has shifted from adapting to the digital age , to drive it".

The report shows that the global recorded music revenue has increased by 5.9% to $15.7 billion, which is the highest increase reported since 1997 when IFPI first tarted monitoring the market. Digital sales are up 17.7% across the market, with digital surpassing physical sales for the first time in 2015 it now accounts for a solid %50 of ALL music sales making up $7.8 billion in revenue. While physical sales revenue show a 7.5% drop. 

Moore goes on to state “The story of recorded music over the last couple of decades has really been one of transformation: from physical to digital; from downloads to streaming; from ownership to access. We want to achieve one more transformation and that is from decline to growth”.  

Streaming revenue is up by 60.4% to over $3.9 billion in revenue, the report records 112 million of paid streaming services subscribers and overall 212 million subscribers when including unpaid subscribers. Streaming now accounts for 59% of all digital revenue, with download sales at a 20.5% decline.  

IFPI announced Drake as the biggest selling recording artists of 2016 across all physical and digital formats. 

IFPI announced Drake as the biggest selling recording artists of 2016 across all physical and digital formats. 

Te recorded performance rights revenue shows growth of 7% to $2.2 Billion accounting for 14% of the market with the U.K., France and U.S. as the leading territories for performers rights revenues. The sync market hold it's 2% share of all recorded music revenues with a 2.8% growth across the board. 

Though the report shows much welcomed, steady growth the IFPI cautions that it shouldn't be met with complacency, also highlighting that the dark clouds of the "value gap" and music piracy still linger.  The report states "the value gap, [Which is] the growing mismatch between the value that user upload services, such as YouTube, extract from music, and the revenue returned to those who are creating and investing in music". Further asserting that those platforms which operate under safe harbour legislation such as 'Youtube' returned $533 Million to rights holders with a global audience of 900 million users in comparison to the $3.9 billion returned to rights holders by streaming services with a user base of 200 million

"The overriding strategic objective to ensure that, as our business continues to evolve, artists are given the broadest range of opportunities in a market place where their music is fully and fairly valued.not just for 2016, but for 2017 and the future. To breathe a sigh of relief and rest on our laurels as if we've arrived at our destination is to completely misread the landscape" said Universal Music Group Executive VP of Digital Strategy, Michael Nash.  

Finally, in its commentary on music piracy IFPI highlighted "19.2 million URLs as hosting infringing content in 2016 and issues 339 million requests to Google requiring it to 'delist' infringing sites". 

To end we leave you with the words of Stu Bergen CEO of International and Global Commercial Services at Warner Music Group "We must remain alert, resourceful and ambitious. We're no longer running up a down escalator, but that doesn't mean we can relax" .."whatever growth we see in the future, we will always need to stay vigilant about every new opportunity. We're sitting back and waiting for streaming to do the heavy lifting."   

See click here for the full report.