The music industry increased its revenue by 12 percent in 2016, with a total turnover of NOK 4,4 billion. Of this, copyright revenues accounted for NOK 976 million.
/ 13/12/2017 / Willy MartinsenOn Tuesday, the "Art in Numbers" report for 2016 was published. The report was prepared by the consulting company Rambøll on behalf of the Arts Council of Norway, and describes the economy within the four art fields of music, literature, visual arts and performing arts.
The largest concert area
Revenue in the music industry grew by 12 percent in 2016, the report says, which is the largest percentage increase from one year to another since the report was first compiled in 2012. The largest growth last year came from the concert sector, where total revenue rose by 21 percent to approximately NOK 2,5 billion. This makes the concert market by far the largest sector in the music industry, representing just over half of total revenue. The growth here was also greater than in copyright royalties and from music sales.
In 2016, copyright royalty income was at its highest level since 2012, totaling NOK 976 million in 2016, of which NOK 76 million came from performances of Norwegian music abroad. The growth in royalty income in 2016 was 4 percent from 2015.
The total export revenues for the Norwegian music industry accounted for 7 percent of total turnover.
CD sales are declining, streaming growth is leveling off
Revenue from recorded music was at the same level as 2013. CD sales have had an average annual decline of 15 percent since 2012, but were down 25 percent in 2016. Sales of download files are also declining, ending in 2016 at NOK 43 million compared to NOK 125 million in 2012. Revenue from vinyl, on the other hand, is more pleasant reading. Here, sales increased by 22 percent in 2016. The streaming economy is now completely dominant. Here, revenue in 2016 was NOK 757 million, which corresponds to 83 percent of total revenues from recorded music. Growth in the streaming economy has had an average annual growth rate of 27 percent since 2012. In 2016, growth leveled off somewhat, with growth from 2015 at 10 percent.
Lower incomes than Sweden and Denmark
The turnover in the Norwegian music industry is lower than in our Scandinavian neighbors. In 2016, the Norwegian music industry had a turnover of the equivalent of 850 kroner per capita, while the turnover in Denmark and Sweden was 1030 kroner and 980 kroner per capita, respectively. Sweden has higher export revenues than Norway and Denmark, while Denmark and Norway have higher revenues per capita in their domestic markets.
Photo above: istock.com