When more users stream music to their devices they no longer need to own tracks or albums where they have to pay to download.

1. Global Recorded Music
Sales in Secular Decline
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
January 2014
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Augustine Fou

2. Digital Music Sales Decline
Overall for the full year 2013, digital
track sales fell 5.7% from 1.34 billion
units to 1.26 billion units while digital
album sales fell 0.1% to 117.6 million
units from the previous year’s total of
117.7 million, according to Nielsen
SoundScan.
Overall, album sales suffered an 8.4%
decline, dipping to 289.4 million units
from nearly 316 million units in 2012.
The CD declined 14.5% to 165.4
million units, down from 193.4 million
in the prior year, while vinyl continued
its ascension rising to 6 million units
from the 4.55 million the format tallied
in 2012. That means vinyl is now 2% of
album sales in the U.S; digital albums
comprise 40.6% and the CD is 57.2%
and cassettes and DVDs 0.2%.
Source: Billboard Biz Jan 3, 2014
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Augustine Fou

3. Subscription vs Download
As more people stream
music, fewer will buy and
download digital tracks or
albums.
Source: Ipsos MediaCT Feb 2013 via The Atlantic
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Augustine Fou

4. Global Recorded Music Sales
Increase in digital
sales and
performance
rights (licensing)
is not enough to
offset the overall
secular decline.
Source: ifpi, August 2013 via Music Industry Blog
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Augustine Fou

5. Global Recorded Music Sales
Increase in digital
sales and
performance
rights (licensing)
is not enough to
offset the overall
secular decline.
Source: ifpi, March 2011 via AllthingsD
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Augustine Fou

6. Streaming vs Downloads
Source: IFPI Dec 2013
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Augustine Fou

7. Streaming Not Enough
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Augustine Fou

8. YoY Growth of Music by Type
Mobile music is a good proxy for streamed music where neither album
nor individual track were purchased.
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Augustine Fou

9. YoY Growth of Music by Type
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Augustine Fou

10. Vinyl Sales Up 30% in 2013
Source: Nielsen
Soundscan, October
2013
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Augustine Fou

11. Dr. Augustine Fou – Digital Consigliere
“I track trends and advise clients on
getting „on-trend‟ or more ideally getting
out in front of them to maximize
competitive advantage.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://bit.ly/augustine-fou-clickz
Slideshares: http://bit.ly/augustine-fou-slideshares
LinkedIn: http://linkd.in/augustinefou
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@acfou
Augustine Fou