musictankedited by . chris green compiled by . rob crutchley the bpi gratefully acknowledges the ....

MUSIC MARKET 2015recorded music in the uk: facts, figures and analysis

Music Market 2015recorded music in the uk: facts, figures and analysis

Music Market 2015 1

©2015 BPI Limited

No part of this book may be reproduced

in any form without written permission

from the copyright owner.

ISBN 978-0-906154-36-6

ISSN 0142-7436

April 2015

Designed by design to communicate

2 Music Market 2015

Edited by Chris Green

Compiled by Rob Crutchley

The BPI gratefully acknowledges the assistance provided by organisations which have supplied data for this publication. All original data sources are quoted throughout. Thanks are also due to Emma Lansdown for her contribution to picture research, Eamonn Forde for his work on the trends defining 2014 section and to those organisations who have provided illustrations. A list of photo credits appears on page 82.

Credits

Tables sourced ‘Official Charts Company’ contain data derived from the chart compilation exercise over a period of years and BPI extends its thanks to the Official Charts Company for co-operation in the publication of data covering the period 1994 – 2014.

BPI is a joint venture partner in the Official Charts Company for the publication and exploitation of charts data.

The editor’s thanks go to Peter Scaping for his assistance in producing this book.

BPI LimitedRiverside Building County Hall Westminister Bridge Road London SE1 7JATel: 020 7803 1300 www.bpi.co.uk

Official Charts CompanyRiverside Building County Hall Westminister Bridge Road London SE1 7JATel: 020 7620 7450www.officialcharts.com

Music Market 2015 3

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Contents

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7

8

10 11 1213

14 15 16 17

1819

2021 22 23 24 25

26 28 29 30 32 33 34 36 37 3839

40 41

4243

44

46 47

48 49 50 51 52 53

54

58 59 60 61

62 63 64 65 66 6768 6970

72 73 74

Compilation Albums: Buyer GroupsCompilation Albums: Formats and Price

The Vinyl Market

BPI Platinum, Gold & Silver AwardsBreakthrough Artists

Independent Music: ChartsIndependent Music: Share of MarketMarket Share: Corporate Group – AlbumsMarket Share: Corporate Group – Singles and StreamsMarket Share: Distributors – AlbumsMarket Share: Distributors – Singles and Streams

10 Trends Defining 2014

Music ListeningRetailers Selling Recorded MusicRetailer Share/Spending on Recorded MusicRetailer Penetration

Demographics: Music BuyersDemographics: Music Buyers/StreamersPenetration and Average SpendPenetration and Average Spend: StreamersPenetration: Gender and AgeAverage Spend: Gender and AgePenetration and Tier Breakdown: StreamersAge and Gender Profiles by GenreMusic Spend: Gender Profiles

Decile Analysis and Spend Composition: All Music BuyersStreamers: Spend Decile Origin and Joiners/LeaversConsumer Crossover

757677

78 79 80 81

82

84

Retailer Consumer ProfilesRetailer LoyaltyImpulse Purchasing

World SalesUK Music in the International MarketUK Music in North AmericaUK Music in Europe, Australia and Japan

Picture Credits

Further Reading

Introduction/Annual Review

Industry Income

Retail Sales by Format: AlbumsRetail Sales by Format: SinglesStreaming: Market DataAlbum Equivalent Sales

Best Selling AlbumsBest Selling SinglesStreaming: Most-Streamed TracksStreaming: Most-Streamed Artists

Sales by Artist Nationality: AlbumsSales by Artist Nationality: Singles

Sales by Type of Music: AlbumsSales by Type of Music: SinglesGenre Focus (Pop, Rock, Dance)Genre Focus (MOR/Easy, R&B, Hip Hop)The Classical MarketThe Classical Market: Best Sellers and Market Share

Gender Analysis Sales by Chart Position: AlbumsSales by Chart Position: SinglesSales by Threshold Sales by Day of WeekRetail PricesMusic GiftingBiggest ArtistsStreaming: Primacy of Most Popular TracksBack Catalogue: AlbumsBack Catalogue: Singles

Compilation Albums: SalesCompilation Albums: Sales by Genre and Type of Retailer

Music Market 2015 5

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Geoff Taylor

Chief Executive, BPI and BRIT Awards

Introduction and Annual Review

2014 proved a remarkable year in many ways, and one from which the music community can draw a great deal of encouragement.

Most exciting of all was the performance of British artists, not just here at home, where they gave us two million-selling albums and dominated the Official Charts to occupy the entire top 10 best-selling artist albums of the year, but around the world as well. Taking Europe as a whole nearly a quarter of all sales generated were by UK artists, but their success was perhaps most marked in the USA – the world’s biggest and most important market – where the million-selling popularity of Sam Smith and the universal appeal of Ed Sheeran in particular helped UK artists claim a 12.2% share of overall music consumption, up from 10.4% in 2013.

It all means that across the globe UK artists accounted for 13.7% of the music consumed, or put another way, just over one in seven of all the albums sold. In doing so they continue to promote a compelling image of Britain as a creative hot-house that leads the world. Watching Ed and Sam as well as George Ezra, Paloma Faith and Royal Blood perform so memorably at February’s BRIT Awards, you couldn’t help but think of potential being fulfilled and of a

powerful new generation of talent coming through that is sowing the seeds of British international success for years to come.

While the value of music consumption in the UK nudged down marginally in 2014 following a slight increase a year before, overall the prospects for future growth in recorded music look strong. In 2014, audio streaming nearly doubled to stand at just under 15 billion streams served, with 14.3bn music videos also played. This dramatic growth rate should be given a further boost with Apple’s new streaming service and YouTube’s Music Key expected to launch fully later this year. Streaming has the potential to drive significant growth in industry revenues in the coming years provided the right balance is found between advertising-funded free streaming, which presently generates only modest revenues on its own, and migration to full-featured, premium subscription services. If this is achieved it should be good news not just for music fans, who will benefit from even more choice in high-quality digital music services, but for investment by record labels in new music.

One of the most interesting trends of 2014 was the continued resurgence of vinyl as a format. Promoted through

annual events such as Record Store Day, LP sales rose 65% to a twenty year high – enabling ERA to report that the number of high street outlets stocking music is on the rise again. The ongoing shift to digital from compact disc also slowed in 2014, prompting suggestions that physical ownership and record collecting, on LP or CD, may be more resilient than expected as a complement for some fans to the immediacy and convenience of streaming. Certainly music fans have never had so much choice as they have now over how, where and when to enjoy the music they love.

Hopefully that’s an optimistic note that will encourage you to immerse yourself in this wonderful publication, with its breadth of market insights and fascinating stats. As ever I am hugely grateful to Chris Green and Rob Crutchley for their outstanding work in putting this together.

May 2015

Music Market 2015 7

Physical format sales have proven resilient in the UK and in 2014 accounted for. . .

47.8%of turnover

2009 2010 2011 2012 2013 2014

Physical Formats 79.7 72.6 64.6 54.9 50.1 47.8

Online 17.5 23.5 30.4 37.1 38.9 35.6

Subscriptions 1.3 2.0 3.0 5.6 7.5 12.4

Ad-supported 0.9 1.3 1.5 2.0 2.6 3.5

Cloud - - - - 0.4 0.6

Mobile 0.4 0.4 0.3 0.3 0.2 0.2

Other Digital 0.2 0.2 0.2 0.1 0.2 -

Total 100 100 100 100 100 100

Industry Revenue Breakdown (%)

Digital’s Share of Industry Revenues

Source: BPI Surveys

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

60%

50%

40%

30%

20%

10%

0

0.2% 1.1% 2.3%7.6%

14.0%

20.3%

27.4%

35.4%

45.1%49.9%

52.2%

Source: BPI Surveys

16.5%of record company revenues are now accounted for by streaming

8 Music Market 2015

Following a small but welcome upturn in 2013, trade income for UK record companies recorded another downturn in 2014. Total revenues fell by 4.1% to stand at £699.6m.

Streaming was again the bright spot for the industry with revenues climbing to £114.7m, a year-on-year increase of almost 50%. Streaming's impressive performance in 2014 meant that its share of industry turnover reached 16.5% across subscription, ad-funded and cloud. Subscriptions was the sector demonstrating the strongest rate of growth with revenues rising by 58.4% to £86.6m.

Digital's overall share rose slightly to 52.2%, a relatively small increase and one that is due entirely to the growth in streaming. Digital downloads all suffered losses in 2014 with revenues across track, album and video sales down by 12.2%.

Income from digital tracks and albums were both down by around 12%. This was the secondsuccessive year of decline for the single track market in the UK, but for albums this was the first year of downturn. The turnaround has been swift going from a 19.5% increase in 2013 to a 11.8% decrease 12 months later. Revenues began falling in the first quarter of 2014 and continued to do so throughout the year.

Industry Incomerevenue falls by 4% in 2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % change

Physical Formats Singles £52.8 £43.1 £31.8 £19.0 £10.2 £7.6 £4.9 £3.3 £2.4 £2.3 £3.3 +48.3%

Albums £1,102.2 £1,057.3 £982.9 £815.6 £749.1 £699.2 £566.4 £475.7 £366.7 £344.2 £319.7 -7.2%

Music Video £62.7 £63.3 £49.1 £37.2 £28.5 £33.1 £26.7 £25.8 £21.2 £18.9 £11.1 -41.3%

Total £1,217.7 £1,163.7 £1,063.8 £871.8 £787.8 £740.0 £598.0 £504.8 £390.3 £365.4 £334.1 -8.6%

Online Tracks £2.7 £12.4 £25.2 £40.9 £62.5 £91.8 £108.3 £119.3 £127.4 £121.7 £106.5 -12.5%

Albums - - - £30.7 £43.7 £67.3 £82.2 £115.4 £134.3 £160.5 £141.6 -11.8%

Music Video - - - - £4.0 £3.4 £3.0 £2.8 £2.2 £1.6 £1.1 -33.7%

Total £2.7 £12.4 £25.2 £71.6 £110.1 £162.6 £193.5 £237.5 £263.8 £283.8 £249.1 -12.2%

Streaming Subscriptions - - - - £8.6 £11.8 £16.3 £23.5 £39.8 £54.7 £86.6 +58.4%

Ad-supported - - - - £2.4 £8.2 £10.8 £11.8 £14.5 £19.0 £21.1 +26.8%

Cloud - - - - - - - - - £3.0 £3.9 +30.8%

Total £11.0 £20.0 £27.1 £35.3 £54.4 £76.7 £114.7 +49.5%

Mobile* Total - - - - £6.0 £4.1 £3.6 £2.7 £2.1 £1.6 £1.3 -22.3%

Other Digital Music Content - - - - £0.8 £1.7 £1.5 £1.6 £0.8 £1.4 £0.3 -77.2%

Total Digital £2.7 £12.4 £25.2 £71.6 £127.9 £188.4 £225.7 £277.1 £321.1 £363.6 £365.4 +0.5%

Total £1,220.4 £1,176.1 £1,089.0 £943.4 £915.6 £928.4 £823.7 £781.9 £711.5 £729.3 £699.6 -4.1%

£1,200

£1,400

£1,000

£800

£600

£400

£200

£0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Industry Income (£m)Source: BPI Surveys. Note for the years 2004 – 2007 digital income was

estimated on the basis of OCC retail volumes. Values are at wholesale,

do not include VAT and are net of returns.

*Comprises master

ringtones and

ringback tunes

Within the physical formats market there was an overall 8.6% downturn, a decrease which was smaller than that recorded in the downloads market. Albums were down by 7.2%, but there was a much larger (-41.3%) decrease in music video income, where the biggest seller of the year (One Direction's This Is Us) was also the biggest seller in 2013.

Music Market 2015 9

Industry Income streaming income up by 50% in 2014, but downloads fall

2010 2011 2012 2013 2014

2010 2011 2012 2013 2014 % change

CD 98.5 86.2 69.4 60.6 55.7 -7.9%LP 0.2 0.3 0.4 0.8 1.3 +65.1%

Digital 21.0 26.6 30.5 32.6 29.7 -9.0%

Other formats* 0.1 0.1 0.1 0.1 0.1 +84.1%

Total 119.9 113.2 100.5 94.0 86.8 -7.6%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Digital

LP

CD

Album Sales by Format – % Share

Top Selling...

Digital

Vinyl

CD

Album Sales by Format – Units Millions

Source: Official Charts Company

Pink Floyd The Endless River Rhino (Warners)

Ed Sheeran’s

second album was

the top seller

on both CD and

download formats

in 2014.

Pink Floyd’s 15th

studio album

was the biggest

selling vinyl

LP of the year.

34.2%digital album sales share

Album sales fell by 7.6% in 2014, driven down by decreases on both physical (CD) and digital formats. Fewer than 30m albums were downloaded, a decline of 9.0% – the first annual drop recorded since these sales were first recorded in 2006. The rate of decrease in digital was actually sharper than that in the CD market (-7.9%) meaning that digital’s share of overall album sales also fell, from 34.7% to 34.2%. CD sales accounted for 64.2% (down slightly, from 64.4% in 2013).

Vinyl sales continued to grow, reaching their highest level since 1995. The format accounted for 1.5% of album sales in 2014, up from 0.8% the year before. The remaining share (0.1%) was comprised of sales on formats such as DVD, cassette and Blu-ray.

Ed Sheeran X Atlantic Records UK


82.2

%17

.5%

0.2%

76.1

%23

.5%

0.3%

69.1

%30

.4%

0.4%

64.4

%34

.7%

0.8%

64.2

%34

.2%

1.5%


*Other album formats include cassette, MiniDisc,

DVD Audio, DVD Video, DMD and albums released as 7" single box sets

Retail Sales by Format: Albumsdigital’s share falls in 2014

10 Music Market 2015

2010 2011 2012 2013 2014 % change

7" 0.2 0.1 0.1 0.1 0.1 -14.8%

12" 0.1 0.1 0.1 0.1 0.1 +9.6%CD 1.9 1.1 0.6 0.4 0.4 +18.8%

Digital 159.7 176.6 187.8 181.6 155.0 -14.6%Total 161.8 177.9 188.6 182.2 155.7 -14.6%

Singles Sales by Format – % Share

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Singles Sales by Format – Units Millions

2014 was not without its big hits: three tracks broke the 1m sales barrier, with the year-end number one (Pharrell Williams’ Happy) actually outselling 2013’s (Robin Thicke’s Blurred Lines). Despite the unusual situation of sales on the CD format increasing (albeit from a comparatively small base) the overall singles market saw sales fall by 14.6%, a sharper drop than that experienced in 2013 (-3.4%). Physical is still an important component of charity and talent show releases (for example, 14% of the sales total for the Band Aid 30 single came on CD) but the singles market has been over 90% digital since 2007.

While the Official Singles Chart started incorporating audio streams from services such as Spotify and Deezer in 2014, for the purposes of clearer market analysis streams have been split out separately in this instance.

DigitalPhysical



Top Selling Digital TrackTop Selling CD Single

Ben Haenow Something I Need

Syco Music

Pharrell Williams Happy

RCA Label Group

99.6% of singles sales in 2014 were in digital format

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Retail Sales by Format: Singlesthree tracks top 1m sales but overall market down

Music Market 2015 11

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Singles 14.09 13.15 15.55 12.31 11.98 14.77 11.72 11.08 13.75 11.05 11.01 15.23

Streams 8.12 9.05 12.18 10.09 11.06 13.50 11.07 11.29 15.28 13.24 13.88 18.86

Singles vs Streams 2014 – Equivalent Volumes (Millions)Streams on the paid and free tiers of audio services (such as Spotify and Rdio but not including YouTube) almost doubled in 2014. The year-end total of 14.8bn was an increase of 97.6% on 2013’s tally of 7.5bn.

Over 300m audio streams were served in each of the last 15 weeks of the year, reaching a peak of 383.9m in the middle of December. The release in that month of Mark Ronson’s Uptown Funk saw a track played over 2m times for the first time in a week, a feat it repeated for 10 weeks in a row.

When streaming totals are converted at a ratio of 100 streams to one equivalent ‘sale’ of a single, the two markets are very similar in size. In fact, the monthly streaming total exceeded the sales tally for the first time in August 2014, and continued to for the rest of the year.

Some 14.3m video streams were served in 2014, with the totals in this market just outstripping audio in the last two months.

2014

2013

2012

Audio Streams (Billions, 2012–2014) Audio and Video Streams (Billions, 2014)

When data was converted to an equivalent measure, streaming overtook singles sales in 2014

20

15

10

5

0

Audio

Video

Note: streams converted to

equivalent of singles sales

by dividing by 100.


0 4 8 12 16

0 4 8 12 16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


14.814.8

7.5

3.7

14.3

Streaming: Market Dataaudio streaming total doubles in 2014


Physical Digital TEA SEA Total2012 69.9 30.5 18.9 3.7 123.02013 61.4 32.6 18.2 7.5 119.72014 57.2 29.7 15.6 14.8 117.2

+/- Change (%) -6.9% -9.0% -14.6% +97.6% -2.1%

Album Equivalent Sales 2012–2104 (Units Millions)

TEA = Track Equivalent Albums (Singles sold total divided by 10)

SEA = Streaming Equivalent Albums (Streams total divided by 1,000)

Album Equivalent Sales – Share (%)

2012

2013

2014 48.8%

56.8%

51.3%

25.3%

24.8%

27.2%

13.3%

15.3%

15.2%

12.6%

3.0%

6.2%

Source: BPI based on Official Charts Company data

Source: Official Charts Company/BPI

Physical Albums Digital Albums TEA SEA

Streaming accounted for

12.6%of Album Equivalent

Sales in 2014


Track Equivalent Album share was at its highest in February, when there were big hits from Pharrell Williams and Clean Bandit

The availability of streaming data means that it is possible to look at how this method of consumption fits into the overall market picture. The table to the left converts all streams and sales data into ‘Album Equivalent Sales’ (AES). Physical album and digital album sales data are counted as normal, but the cumulative total for individual track sales has been divided by 10 – to provide a ‘Track Equivalent Album’ (TEA) figure – while the audio streaming total has been divided by 1,000 (100 streams = one track sale and 10 track sales=one album) to provide a Streams Equivalent Album (SEA) figure.

Using this measure, the Album Equivalent Sales figure for 2014 was 117.2m, a decrease of 2.1%. SEA share grew throughout the year until November when it dropped to 14.3% and then 8.6% in December. For 2014, it amounted to 12.6% of the overall AES total.

TEA accounted for 13.3% across the year, but was at its highest in February (16.4%), a slow month for album sales, and when there were big hits from Clean Bandit and Pharrell Williams. Digital only rose above 30% once (in January), whilst physical’s share was highest at the end of the year.

Album Equivalent Salesnew measure shows 2.1% decrease in 2014

Top 10 Albums 2014Ed Sheeran X Atlantic Records UK

Sam SmithIn The Lonely Hour Capitol

Various ArtistsNow 89Sony Music CG/Virgin EMI

Original SoundtrackFrozenUMC


George EzraWanted On VoyageColumbia Label Group


Paolo NutiniCaustic LoveAtlantic Records UK

ColdplayGhost StoriesParlophone

Paloma Faith A Perfect ContradictionRCA Label Group

In 2013 no artist album managed to top the 1m sales marker, but two did so – by some distance – a year later. Ed Sheeran’s second album X racked up sales of 1.7m between its release in June 2014 and the end of the year. It spent an impressive 12 weeks at number one and achieved the biggest annual sales total since Adele’s all-conquering 21 in 2011. Sam Smith’s

debut album In The Lonely Hour sold almost 1.5m copies, making him the only artist to sell over 1m copies of a release in both the UK and the US.

The November-released Now 89 rounded out the top three, with the Frozen soundtrack placed at number four – the highest year-end ranking for an OST since The Bodyguard in 1993.

NOW 87, 88 & 89 sold

2.3 million copies

between them in 2014

Various Artists NOW 86

2013 // 1.1m

Emeli Sandé

OUR VERSION OF

EVENTS

2012 // 1.4m

Take That PROGRESS

2010 // 1.8m sales

Ed Sheeran X

2014 // 1.7m sales

Adele 21

2011 // 3.8m sales

1

2

3

4

5

10

6

7

8

9


Two artist albums, X by Ed Sheeran and In The Lonely Hour by

Sam Smith, sold over

1mcopies in 2014.

None did so in 2013.


Best Selling Albums 2010–2014

Best Selling Albumsed sheeran tops 2014 rundown


Top 10 Singles 2014Pharrell WilliamsHappy RCA Label Group

Clean Bandit Ft J. Glynne Rather Be Atlantic Records UK

John LegendAll Of Me Columbia Label Group

Mr ProbzWaves RCA Label Group

Ella HendersonGhost Syco Music

Pitbull Ft KeshaTimber RCA Label Group

Ed SheeranThinking Out Loud Atlantic Records UK

Sam SmithStay With Me Capitol

Meghan Trainor All About That Bass RCA Label Group

Idina Menzel Let It Go UMC

The top three singles were all downloaded

over

1mtimes

2013

Robin Thicke/

T.I/Pharrell

BLURRED LINES

2014

Pharrell Williams

HAPPY

Best Selling Singles 2010–2014

2010

Eminem ft Rihanna

LOVE THE WAY YOU LIE0.9million

1.5million

1.9million

2011

Adele

SOMEONE LIKE YOU

1.2million

2012

Gotye ft Kimbra

SOMEBODY THAT

I USED TO KNOW

1.3million


1

2

3

4

5

10

6

7

8

9

Clean Bandit

Pharrell Williams’s Happy was the last weekly number one single of 2013 and its success carried right through into 2014: it sold over 1.5m copies on digital and physical formats and was streamed over 35m times. The resulting sales and streams total of 1.9m ensured it topped the ‘combined’ singles chart for the year (reproduced here). Clean Bandit’s Rather Be (which topped the year-end streaming chart) was among five tracks to achieve a combined total of over 1m, with the top 29 all achieving a total of over half a million on this basis.

The tremendous success of Frozen was evidenced by Idina Menzel’s Let It Go at number nine, while debut hits for Mr Probz, Ella Henderson and Meghan Trainor all made the annual top 10.


Best Selling Singlespharrell claims singles top spot


Pharrell Williams

16.7 million

Most-Streamed Tracks 2014

Pharrell WilliamsHappy RCA Label Group

Clean Bandit Ft J.Glynne Rather Be Atlantic Records UK

John LegendAll Of Me Columbia Label Group

Mr ProbzWaves RCA Label Group

George Ezra Budapest Columbia Label Group

Pitbull Ft KeshaTimber RCA Label Group

Ed SheeranThinking Out Loud Atlantic Records UK

Sam SmithStay With Me Capitol

Magic Rude RCA Label Group

Clean Bandit ft Jess Glynne’s Rather Be came second to Pharrell Williams’s Happy in the combined singles chart for 2014 but the order was reversed on the streaming rundown. Played almost 40m times across the course of the year, Rather Be topped the 1m play count in 12 different weeks, with streams accounting for over a quarter of its 2014 consumption tally.

Every track in the year-end top 20 was played over 20m times and in total 73 titles were streamed over 10m times across the course of the year. Bastille’s Pompeii remained a real favourite on streaming services, placed at number 16 in the 2014 year-end chart compared to its ranking of 94 on the sales-only rundown.

39.7million

Clean Bandit's Rather Be was streamed 39.7 million times in 2014; the most-streamed track of 2013 was Daft Punk’s Get Lucky (16.7 million times)


Ed SheeranSing Atlantic Records UK

In 2014, 73 tracks were streamed over 10 million times; compared to 7 tracks in 2013

Tracks streamed over 10m times


7the number of tracks by Ed Sheeran in the

2014 streaming top 100

1

2

3

4

5

10

6

7

8

9

737

2013 2014


Streaming: Most-Streamed Tracksclean bandit top audio streams chart


Most Streamed Artists 2014

Arctic Monkeys Domino Recordings

Eminem Polydor

Calvin Harris Columbia Label Group

One Direction Syco Music

Beyoncé RCA Label Group

Katy Perry Virgin EMI

Bastille Virgin EMI

BPI analysis of the 15,000 most-streamed tracks reveals that Ed Sheeran topped the 220m play count for his singles and album tracks in 2014. The only artist to have two singles present in the year-end top 10, 32 of his tracks were played over 1m times across the course of the year, with Thinking Out Loud, Sing and Don’t all exceeding 20m.

Eminem’s sizeable back catalogue (115 of his tracks counted towards his tally) meant that he secured second place, with 106.8m plays. Sam Smith and Arctic Monkeys (the most-streamed act of 2013) also passed the 100m play marker. With only 16 tracks in the analysis, Sam Smith achieved the highest plays-per-track average in the top 10 (6.6m).

Ed Sheeran Atlantic Records UK

Sam Smith Capitol

ColdplayParlophone

Top Five Most-Streamed Artists 2014

Ed Sheeran //

Number of Tracks: 50

Stream Total: 220.6m

Eminem //



Calvin Harris //


Stream Total: 89.3m

Sam Smith //



Arctic Monkeys //



1

2

3

4

5

10

6

7

8

9

Source: BPI/Official Charts Company


Streaming: Most-Streamed Artistsed sheeran tops 220m play count


2010 2011 2012 2013 2014

UK 48.9 52.7 51.9 51.9 53.5

USA 35.8 32.7 34.2 33.8 34.3

Canada 4.5 4.5 3.7 4.4 2.8

Ireland 2.6 2.2 1.8 1.8 2.2

Australia 1.9 0.7 1.5 1.0 1.8

Sweden 0.5 0.5 0.6 1.1 1.2

Netherlands 1.2 1.1 1.0 1.2 0.9

France 0.6 0.9 1.1 1.7 0.6

Germany 0.5 0.3 0.3 0.4 0.4

New Zealand 0.1 0.2 0.1 0.3 0.4

Jamaica 0.2 0.3 0.4 0.3 0.3

Italy 0.2 0.4 0.4 0.5 0.2

Spain 0.2 0.2 0.2 0.2 0.2

Denmark 0.1 0.1 0.1 0.1 0.2

Barbados 1.6 2.3 1.6 0.5 0.1

Iceland 0.1 0.1 0.3 0.3 0.1

Finland 0.1 0.1 0.1 0.1 0.1

Norway 0.1 0.1 0.1 0.1 0.1

Switzerland - 0.1 0.1 0.1 0.1

Big selling releases from artists such as Ed Sheeran, Sam Smith, George Ezra, Paolo Nutini, Coldplay and Paloma Faith helped British acts account for more than half (53.5%) of all albums sold in the UK in 2014. This was the highest share since the days of Britpop in 1997, when Oasis, The Verve and Radiohead were among the biggest artists.

For the first time ever the entire year-end artist albums top 10 was composed of UK acts, and only five of the 2014 top 20 albums were by non-domestic artists. Taylor Swift’s 1989 was the highest-placed (at number 11), with US share rising slightly to 34.3%. Canada again claimed third place in the albums share table with 2.8% of the market, in particular thanks to Michael Bublé, while Ireland’s sales percentage was boosted by hit albums from The Script and Kodaline among others. 5 Seconds of Summer and Iggy Azalea helped Australia move into fifth place in the share table, with Sweden’s improved 1.2% due in no small part to the success of Avicii.

UK Album Sales by Artist’s Nationality – % Units

20142010 2012 2014 20122010

Album Sales by Artist Nationality – UK vs US

USA sold

35.8% units

USA sold

34.2% units

USA sold

34.3% units

UK sold

48.9% units

UK sold

51.9% units

UK sold

53.5% units

Examples of Qualifying Artists

Source: BPI analysis

UK Ed Sheeran, Sam Smith, George Ezra, Paolo Nutini

USA Taylor Swift, Dolly

Parton, Barbra Streisand

CanadaMichael Bublé,

Nickelback, Leonard Cohen

IrelandThe Script, Kodaline,

Boyzone, Hozier, U2

Australia5 Seconds of Summer,

Kylie Minogue,

Iggy Azalea


Sales by Artist Nationality: Albumsuk takes biggest share in 17 years

John Legend

2010 2011 2012 2013 2014

UK 40.7 42.6 44.0 41.2 43.4

USA 43.0 43.8 36.7 40.9 37.7

Australia 2.5 0.5 2.3 1.3 3.3

Canada 2.4 1.5 3.5 2.5 3.0

Sweden 1.2 1.0 2.6 3.7 2.4

Netherlands 0.7 0.6 0.1 1.6 2.3

France 1.1 2.4 2.8 2.7 2.1

Ireland 1.3 0.7 1.4 1.1 1.2

Germany 0.2 - - 0.3 1.1

New Zealand - 0.1 0.1 0.4 0.6

Norway 0.1 0.1 0.1 0.2 0.6

Barbados 2.5 3.8 3.3 1.4 0.5

Jamaica 0.3 0.4 0.9 0.6 0.4

Colombia 0.4 0.2 0.1 0.1 0.3

Spain 0.6 0.8 0.1 0.1 0.3

S Korea - - 1.0 0.5 0.1

Italy 0.2 0.4 0.1 0.3 0.1

Austria - - - 0.3 0.1

Iceland - - 0.3 0.2 0.1

Ella Henderson

Iggy Azalea


UK Singles Sales by Artist’s Nationality – % Units

Singles Sales by Artist Nationality – UK vs US 1995–2014

British artists claimed the largest share of singles sales for a third year in a row in 2014. Despite the biggest track of the year being attributable to an American artist (Pharrell Williams), the strong performances of singles by domestic acts such as Clean Bandit, Ed Sheeran, Ella Henderson and Sam Smith meant that the cumulative UK share of the market rose to 43.4%, from 41.2% in 2013. New British artists such as George Ezra, Route 94 and Sigma all scored big hits, while US fortunes waned slightly, with share dropping from 40.9% to 37.7%, despite success for John Legend, Pitbull and Idina Menzel among others.

Mr Probz’s massive hit Waves helped move Netherlands’ share up to 2.3%, while Germany moved up five places in the table thanks mainly to success for Zedd, Milky Chance and Parra For Cuva.

60

50

40

30

20

10

0

Source: BPI analysis

Sales by Artist Nationality: Singlesuk tops share table for third successive year

USA 2014

37.7%UK 2014

43.4%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2010 2011 2012 2013 2014

Pop 30.9 33.6 33.5 31.0 34.5

Rock 31.2 29.4 31.3 33.8 33.2

Dance 5.8 4.9 6.3 8.3 7.7

MOR/Easy Listening 7.5 7.9 7.6 8.1 6.5

R&B 10.4 10.1 7.2 5.7 5.6

Classical 3.5 3.3 3.7 3.2 3.2

Hip Hop 4.2 3.4 3.5 3.6 2.7

Country 1.4 1.6 1.5 1.7 2.3

Jazz 1.6 1.5 1.3 1.3 1.2

Folk 1.3 1.6 1.4 1.2 1.1

Blues 0.6 0.9 0.9 0.9 0.6

Reggae 0.6 0.7 1.0 0.7 0.6

Childrens 0.4 0.4 0.4 0.2 0.2

World 0.4 0.3 0.3 0.2 0.2

Spoken Word 0.1 0.1 0.1 0.1 0.1

New Age 0.1 0.1 0.1 0.1 0.1

Boosted by some major new releases, Pop returned to the top of the album sales share table in 2014.

Alongside a follow-up to the immensely successful from Ed Sheeran and a hugely popular debut by Sam Smith – which both sold over a million copies in the UK – the new albums by Paolo Nutini, Paloma Faith, One Direction and Olly Murs all helped push Pop’s share up to its highest this century. Major new releases from Take That, Taylor Swift, Ella Henderson and The Script were also all classified as Pop.

The share of sales collectively accounted for by Rock titles fell only slightly in 2014, with the breakout debut by George Ezra the biggest seller in the genre. New albums by Royal Blood and AC/DC featured in the year-end top 50, as did new titles by Foo Fighters, Elbow and Kasabian.

Dance failed to quite match the heady heights of its 2013 share of 8.3%, but its 7.7% kept it firmly in third place. MOR/Easy, R&B and Hip Hop also all saw their shares fall but Country’s rose to 2.3% – its highest in seven years – due mainly to the success of Dolly Parton’s Blue Smoke compilation.

Album Sales – by Genre (% Units)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

45

40

35

30

25

20

15

10

5

0

PopPop vs Rock – Share of Album Sales (%) Rock

pop36.9%

in 1998

rock41.5%

in 2006

New albums from Paolo Nutini, Paloma Faith and

One Direction helped push Pop's share up to its highest this century


+


Sales by Type of Music: Albumspop claims biggest share since 1999

Singles Sales – by Genre (% Units)

Sales* by Genre (% Units)

Streams by Genre (% Units)

Sales Streams

Pop remains the biggest genre in the combined (sales and streams) singles market although its share dipped again in 2014. Six of the top 10 biggest singles of the year were classified as Pop, including titles by Pharrell Williams, Ed Sheeran, Idina Menzel and Meghan Trainor.

Rock’s share increase continued in 2014, marking four straight years of improvement. George Ezra’s Budapest was the genre’s top seller at number 11 but catalogue was again its strength, with over 2,200 of the top 15,000 singles of the year classed as Rock tracks released in or prior to 2012.

Dance’s share of 16.2% was a slight increase on 2013’s, which was its biggest since 2006. Two of the top five biggest singles of the year – Clean Bandit’s Rather Be and Mr Probz’s Waves – were classified as Dance, as were 27 of the top 100 (up by one on 2013’s total).

The ordering of genres is very similar in both the sales and streams markets, although Pop is more dominant in the former and Rock much more popular in the latter. Only 10 Rock tracks appeared in the 2014 sales-only top 100, compared with 19 in the streaming rundown.

2010 2011 2012 2013 2014*

Pop 38.3 36.0 38.5 36.2 36.0

Rock 17.2 18.0 20.0 21.4 24.3

Dance 12.6 13.8 13.8 16.1 16.2

R&B 18.0 17.2 12.3 13.5 10.8

Hip Hop 12.2 10.2 10.7 8.6 8.1

MOR/Easy 0.8 1.4 1.5 1.6 1.7

Classical 0.1 1.2 0.9 0.7 0.9

Reggae 0.3 0.6 0.9 0.5 0.5

Country 0.2 0.5 0.5 0.5 0.5

Folk 0.1 0.6 0.4 0.3 0.4

Jazz 0.2 0.3 0.2 0.2 0.3

2014

Pop 31.6

Rock 30.3

Dance 13.2

R&B 11.0

Hip Hop 8.9

MOR/Easy 1.6

Classical 1.2

Reggae 0.5

Folk 0.5

Country 0.5

Jazz 0.3

2014

Pop 39.3

Rock 19.8

Dance 18.5

R&B 10.7

Hip Hop 7.5

MOR/Easy 1.7

Classical 0.7

Country 0.6

Reggae 0.4

Folk 0.3

Jazz 0.2

0 10 20 30 40 50

Pop

Rock

Dance

R&B

Hip Hop

39.331.6

19.830.3

18.513.2

10.711.0

7.58.9

Share of Sales* and Streams – Main Genres 2014 (%)


*Sales only – excludes streams


Dance's 2014 share of singles sales was its

highest since 2006*Sales and streams combined

Sales by Type of Music: Singlespop still top but rock’s share up again


Dance Although it was released the year before, Avicii’s True was the biggest selling Dance album of 2014 and was one of nine titles from the genre to be placed in the year-end top 100. Others included the new album by Calvin Harris, Motion, Clean Bandit’s debut New Eyes and the compilation Anthems – House. Dance’s share of 7.7% was slightly down on 2013’s (8.3%), which was its highest since 2005. In the combined singles market Dance’s share increased slightly to 16.2%, with Route 94, Sigma and David Guetta among those artists enjoying number ones.



London Grammar If You Wait Metal & Dust Recordings

Disclosure Settle Island

Avicii True Virgin EMI

Various Artists Eat Sleep Rave Repeat Ministry of Sound

Calvin Harris Motion Columbia Label Group

Rudimental Home Atlantic Records UK

Sam SmithIn The Lonely Hour Capitol



George EzraWanted On VoyageColumbia Label Group

ColdplayGhost StoriesParlophone


Pink Floyd The Endless River Rhino (Warners)

Arctic Monkeys AM Domino Recordings

Rock Claimed a share of 33.2% in 2014, only slightly down on 2013’s five-year high of 33.8%. Just under a quarter (24) of the top 100 albums of the year were classified as Rock, including new albums by Ben Howard and The Kaiser Chiefs. The biggest selling Metal/Heavy Rock album was AC/DC’s Rock Or Bust, and the sub-genre accounted for 7.0% of all albums sold in 2014. Progressive claimed a 1.5% share, with Pink Floyd’s The Endless River the biggest seller, while Contemporary remained the biggest sub-genre, responsible for 18.2% of all albums sold.

Pop Titles classified as Pop constituted seven out of the top 10 best sellers of the year, including the top three. Outside of the top 10 the albums by Taylor Swift and Ellie Goulding both sold over 300,000 copies, while there were big-selling debuts for artists such as Ella Henderson, The Vamps and 5 Seconds of Summer. In total, Pop titles claimed 43 places in the year-end top 100, ranging from soundtracks (such as Guardians Of The Galaxy) to new albums by established artists such as The Script and George Michael. The genre accounted for a 36.0% share of combined singles sales.

5 Seconds of Summer

Ben Howard

Avicii

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5


Genre Focusavicii scores biggest selling dance album

Hip HopThe Hip Hop rundown was dominated by Eminem-associated titles, with his 2013-released The Marshall Mathers LP 2 the top seller, followed by a new Shady Records compilation ShadyXV and his Curtain Call hits album. Other big sellers from the genre included Iggy Azalea’s The New Classic and the compilation The Grandmaster Flash Collection but only one title made the top 100, compared with four in 2013. As a result, Hip Hop’s share fell to 2.7% in the albums market and also dropped in terms of singles sales, despite the success of Pitbull ft Ke$ha’s Timber.

MOR/EasyMOR/Easy Listening’s albums market share fell back to 6.5% in 2014. The previous year’s 8.1% share was driven by big sellers from Michael Bublé (To Be Loved) and Robbie Williams (Swings Both Ways) but although there were successful releases from Barbra Streisand, Collabro, Bette Midler and Neil Diamond, none made the year-end top 10. In both the compilations (see page 41) and singles markets, however, the genre’s share rose, the latter boosted by the popularity of tracks by Kristen Bell and Idina Menzel from the Frozen soundtrack.


Barbra Streisand Partners Sony Music CG

Michael Bublé Christmas Warner Bros

Collabro Stars Syco Music

Bette Midler It’s The Girls Rhino (Warners)

Various Artists Disney Sing-Along – Frozen UMC

Whitney Houston The Ultimate Collection Sony Music CG

Pharrell Williams Girl RCA Label Group

John Legend Love In The Future Columbia Label Group

Beyoncé Beyoncé RCA Label Group

Various Artists The Trevor Nelson Collection 2 Sony Music CG

Iggy Azalea The New Classic Virgin EMI

Eminem The Marshall Mathers LP 2 Polydor

Various Artists ShadyXV Polydor

Eminem Curtain Call – The Hits Polydor

Tinie Tempah Demonstration Parlophone

R&B Pharrell Williams’s Girl and John Legend’s Love In The Future both sold in excess of 300,000 copies in 2014, placing them at numbers one and two respectively in the year-end R&B chart. In total six titles from the genre featured in the year-end top 100, including Beyoncé’s self-titled album and the compilation The Trevor Nelson Collection 2. R&B's collective share fell back slightly, however, to 5.6% and also decreased in the singles market, to 10.8% (from 13.5%). John Legend’s All Of Me was the third big-gest selling track of the year but only nine singles from the genre made the combined top 100 compared to 15 in 2013.

Eminem

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

Bette Midler

Beyoncé


Genre Focuspharrell tops r&b chart

2007 2.6%

2008 3.8%

2009 6.3%

2010 7.7%

2011 12.9%

2012 17.9%

2013 25.2%

2014 21.5%

Digital’s Share of Classical Albums – (% Units)

Classical album sales fell by 5% in 2014, with compilations purchasing decreasingly noticeably, by more than 20%. Album downloads fell for the first time since figures were collated in 2006, dropping by 18.9%, although CD held up well, with sales down by less than 1%. Despite the overall decrease, Classical’s share of sales in the albums market held steady at just over 3%.

The average retail price of CDs increased – for a second successive year – by 5.5% in 2014, from £8.97 in 2013 to £9.46.

Classical accounted for only 1.2% of total streams last year, just under a third of the genre’s share of album sales. Although streaming levels are relatively low, 125 Classical tracks were streamed more than 100,000 times. The Official Charts Company recorded more than 105m Classical streams in 2014. The most-streamed track of the year was Vuelie, the opening track from the soundtrack to Frozen by Christopher Beck/Cantus.

Sales (m) Market Share

2005 5.089 3.3%

2006 5.155 3.4%

2007 4.721 3.6%

2008 4.689 3.7%

2009 3.864 3.2%

2010 3.828 3.5%

2011 3.415 3.3%

2012 3.097 3.7%

2013 2.523 3.2%

2014 2.397 3.2%

Classical Sales and Market Share


Classical Albums – Market Splits 2014

Artist/Compilations

Alfie Boe


Katherine Jenkins

78.5%Physical

21.5%Digital

19.7%Compilations

80.3%Artist

Albums


The Classical Marketclassical’s share of sales steady in 2014

Top 10 Classical Albums 2014

Andre Rieu Love In Venice Decca

Alfie Boe Serenata Decca

Katherine Jenkins Home Sweet Home Decca

Various Artists Christmas Classical Voices Rhino/Sony Music CG

Various Artists Christmas At Downton Abbey Rhino (Warners)

Ludovico Einaudi Islands – Essential Einaudi Decca

John Rutter The John Rutter Songbook Decca

Nicola Benedetti Homecoming Decca

Andre Rieu Rieu Royale Decca

Various Artists Classic FM Hall Of Fame 2014 Decca

2010 2011 2012 2013 2014Universal Music 60.4 56.4 52.2 45.4 50.0

Warner Music 2.2 3.0 6.0 9.8 14.1

Sony Music 10.3 6.2 7.4 13.2 10.7

HNH 5.8 6.1 5.7 6.8 6.6

Hyperion 1.5 1.8 1.8 2.2 2.3

Chandos 0.9 1.1 1.1 1.1 1.3

X5 0.3 0.9 0.9 1.2 1.1

LSO 0.6 1.0 0.9 1.1 0.9

harmonia mundi 0.9 0.8 1.0 0.9 0.9

The Sixteen Productions/Coro 0.4 0.6 0.5 0.8 0.7

Delta 0.2 1.2 3.2 1.8 0.6

Signum 0.1 0.2 0.3 0.3 0.6

Futura Classics - - - - 0.6

Demon Music Group 1.6 0.7 1.1 0.7 0.5

ECM 0.5 0.4 0.5 0.5 0.5

Union Square Music 1.4 0.9 0.6 0.6 0.4

Cobra Entertainment - - - 0.5 0.4

Linn 0.3 0.2 0.2 0.3 0.4

Collegium 0.3 0.3 0.3 0.3 0.3

Monteverdi Productions 0.3 0.2 0.2 0.3 0.3

Gimell 0.1 0.2 0.2 0.3 0.3

BIS 0.2 0.2 0.1 0.3 0.3

Silva Screen 0.1 0.2 0.2 0.2 0.3

The cumulative share of independent record companies in the Classical sector fell in 2014. Universal and Warner Music both recorded higher shares in 2014 with the latter’s share boosted by repertoire previously owned by EMI Music. Nevertheless, several independent companies recorded their highest ever shares:

Hyperion – their share of 2.3% was their best ever, led by Angela Hewitt’s critically acclaimed double CD Bach: The Art of Fugue which sold more than 3,000 copies.

Chandos’s market share reached 1.3% in 2014. Their biggest seller was Tamsin Little and the BBC Symphony Orchestra’s recording of Walton’s first symphony and violin concerto.

Signum’s share doubled from 0.3% in 2013 to 0.6% in 2014. Tenebrae’s recordings, Lux et Veritas and Russian Treasures both contributed significantly.

Linn also recorded a best ever share in 2014. The Glasgow-based label’s best seller was Mozart: Requiem by The Dunedin Consort.

Andre Rieu returned to the top of the annual Classical chart in 2014: Love In Venice outsold its nearest rival by more than two copies to one. 2013’s biggest seller, Classical Voices, appeared at number 11 in the 2014 year end bringing its cumulative sales to more than 140,000.


Classical Market Share – by Record Company All Albums (%)

Andre Rieu returned to the top of the annual Classical

chart in 2014

1

2

3

4

5

10

6

7

8

9


The Classical Market: Best Sellers and Market Shareandre rieu tops classical chart in 2014


The success of artists such as Ed Sheeran and Sam Smith was reflected in the increased share of overall album sales accounted for by male solo acts in 2014. For a second year running over a third of sales were attributable to solo males, whose releases made up five of the annual top 10, and when male groups were added to the equation Paloma Faith was the sole female representative.

Solo females’ share reached a peak of 30.9% in 2011, when Adele, Rihanna, Jessie J, Lady Gaga, Katy Perry and Beyoncé all had great success. Since then, however, their cumulative sales percentage has fallen in every year, coinciding with a rise in that accrued by solo males culminating in a 2014 share of 38.2%, with George Ezra, Paolo Nutini and Olly Murs all making the year-end top 10. When UK artists alone are analysed, solo males take an even bigger share – 40.3%.

Male Groups also claimed over a third of sales in 2014, with Coldplay, One Direction and Pink Floyd among those achieving number one albums. When each gender group’s sales are analysed by nationality the UK achieved the strongest sales share (63.4%) in the male group category and the weakest (39.3%) in the female groups.

Album Sales – by Gender (%)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

50

45

40

35

30

25

20

15

10

5

0

Album Sales – by Gender 2000 –2014 (%)

100%

80%

60%

40%

20%

0%

UK/International Sales – by Artist Gender 2014 (%)

63.

4% 3

6.6%

45.

3% 5

4.7%

60.

5% 3

9.5%

39.

3% 6

0.7%

44.

5% 5

5.5%

UK International

30.9% in 2011

UK Artists – Album Sales by Gender 2014

4.6%

0.8%

14.5%

39.8%40.3% Male

Solo

Male

Group

Female

Solo

Female

Group

Male/

Female Group

38.2% in 2014

2010 2011 2012 2013 2014

Male Solo 30.5% 29.4% 32.2% 36.8% 38.2%

Male Group 36.7% 32.9% 33.5% 36.2% 36.0%

Female Solo 23.0% 30.9% 25.4% 17.3% 18.7%

M/F Group 9.1% 6.1% 7.1% 8.2% 5.8%

Female Group 0.7% 0.6% 1.8% 1.5% 1.2%

TOTAL 100 100 100 100 100

Source: BPI analysis based on

Official Charts Company data

Base: top 1,000 albums


Gender Analysismale solo artists’ sales share increases again

The success of A Perfect Contradiction – the sixth biggest-selling artist album of the year – helped Paloma Faith take the title of top selling female artist in the 2014 albums market, ahead of Taylor Swift and Dolly Parton. She was one of only nine artists to sell more than half a million albums and the only female to do so.

Haim topped the female group

category, all their sales coming from their 2013 release Days Are Gone, while One Direction’s total of almost 800,000 was spread across four albums and gave them pole position in the Male Group category.

The continued success of London Grammar’s 2013 debut If You Wait was enough to give them the edge as top male/female group.

Male Group

One Direction

Coldplay

Pink Floyd

Female Solo

Paloma Faith

Taylor Swift

Dolly Parton

Male/Female Group

London Grammar

Fleetwood Mac

Abba

Female Group

Haim

Little Mix

First Aid Kit

Male Solo

Ed Sheeran

Sam Smith

George Ezra

Top Selling Album Artists – by Gender 2014

Source: BPI based on Official Charts

Company data

The continued success of London Grammar’s If You Wait was enough to give them the edge as top Male/Female Group in 2014 over Fleetwood Mac’s collected catalogue sales

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

Paloma Faith

HaimBase: top 1,000 albums


Gender Analysispaloma faith is biggest selling female album artist of 2014


After dropping below 60,000 in 2012 the average weekly sales for a number one artist album have now risen for a second successive year, reaching 64,500 in 2014. As in 2013 10 weekly number ones sold over 100,000 copies, with the biggest single tally being 214,451, achieved by Ed Sheeran’s X in week 51.

The average weekly sales tally achieved by a number one in the

compilations chart fell, however, by 13% to 52,400. The same number of titles (nine) sold over 100,000 copies as in 2013, but no title in 2014 sold over 290,000 copies in any one chart week, whereas Now 85 managed 317,376 in week 30 of 2013. Interestingly, all sales did increase by position outside the compilations top 10 in 2014.

1 5 10 20 30 40 50 752013 62,025 19,825 12,425 7,650 5,375 3,950 3,025 1,8502014 64,500 20,425 11,250 6,075 4,150 3,100 2,425 1,550

Average Weekly Number One Sales – by Album Chart Type

Combined

85,

900

79,

950

Average Weekly Artist Album Sales – by Chart Position

Average Weekly Compilation Album Sales – by Chart Position

Average Weekly Combined Album Sales – by Chart Position

1 5 10 20 30 40 50 752013 60,125 12,300 6,450 2,550 1,525 1,100 850 5502014 52,400 11,300 6,550 3,100 1,825 1,250 950 575

1 5 10 20 30 40 50 752013 85,900 23,750 15,100 9,875 7,200 5,450 4,300 2,6502014 79,950 24,250 14,800 8,625 5,975 4,650 3,725 2,375


2013 2014

60,

125

52,

400

Compilations

62,

025

64,

500

Artist


Coldplay's Ghost Stories sold more than 168,000 copies in its week of release

Sales by Chart Position: Albumsaverage weekly sales for number one artist album rise


The weekly number of plays accrued by a number one on the Official Streaming Chart doubled in 2014, from just under 750,000 to just under 1.5m. In all but three weeks of the year the track in pole position was streamed over 1m times, with Mark Ronson’s Uptown Funk passing the 2m mark in the final two weeks of the year.

The rate of increase across the board in the streaming chart is also illustrated by the fact that the average number of plays for a track at number 75 in 2014 would have been enough to secure a top 20 position in 2013. In the sales-only chart the weekly total fell in the top 10 positions but increased outside of them.

1 5 10 20 30 40 50 752013 107,625 43,800 27,475 15,425 10,375 7,650 5,750 3,6252014 103,500 38,400 25,525 16,050 11,450 8,475 6,475 3,875

Average Weekly Singles Sales – by Chart Position

Average Weekly Streams – by Chart Position

Average Weekly Combined Singles Sales – by Chart Position

1 5 10 20 30 40 50 752013 749,350 445,175 320,525 219,975 167,225 133,575 114,175 85,5502014 1,469,225 995,525 810,975 635,400 494,550 408,325 337,400 221,750

1 5 10 20 30 40 50 752013 107,625 43,800 27,475 15,425 10,375 7,650 5,750 3,6252014 107,875 40,350 26,400 16,650 11,900 8,675 6,600 4,025


214,239 Sales of X-Factor winner Ben Haenow's Something I Need single in Christmas week

312,928 Band Aid 30's Do They Know It's Christmas? was the fastest-selling single of the year

2mUptown Funk was the first track to be streamed more than 2m times in one week

Sales by Chart Position: Singlesplay count doubles for streaming chart topper in 2014

Number of Albums and Singles Selling Over 100,000 Copies

Number of Albums Sold – by Threshold

*Sales only: excludes streams

Two albums (by Ed Sheeran and Sam Smith) sold over 1m copies in 2014, compared to just one (Now 86) in 2013. The tally could have been increased to three, but Now 89 had one less week on sale than its 2013 counterpart, resulting in it just missing out on passing the 1m sales mark before the year’s end.

Two albums sold between 750,000 and 1m copies compared to one in 2013 but beyond that threshold the totals begin to fall. By contrast there were increases in every sales group in the streaming market, with more than 70 titles played over 10m times – more than 10 times the total for 2013. The combined streaming and sales tally for titles achieving over 100,000 sales fell by 16%.

In 2014

1,790 tracks were streamed over one million times

Albums

Streams

2013 2014200

150

100

50

0

126

95 198

166

Singles

2013 2014100,000 – 249,999 95 67

250,000 – 499,999 21 17

500,000 – 749,999 8 7

750,000 – 999,999 1 2

1m+ 1 2

TOTAL 126 95

Albums

2013 2014

1m – 2.49m 410 1,326

2.5m – 4.9m 91 288

5m – 7.49m 23 68

7.5m – 9.9m 8 35

10m+ 7 73

TOTAL 539 1,790

Streams

2013 2014

100,000 – 249,999 119 103

250,000 – 499,999 59 46

500,000 – 749,999 13 12

750,000 – 999,999 3 2

1m+ 4 3

TOTAL 198 166

Singles

Number of Streams – by Threshold

Number of Singles Sold – by Threshold*

2,000

1,500

1,000

500

0

539

1,79

0

Number of Tracks Streamed Over 1m Times

2013 2014

Ed Sheeran and Sam Smith's albums both sold over

1m copies in 2014

Source: Official

Charts Company


Sales by Thresholdtally for top-selling albums drops

Number of Titles – by Sales/Streams Threshold

There was a significant drop in the number of albums selling over 100,000 copies and indeed every threshold group presented here saw sales drop bar the very lowest one (titles selling between one and 100 copies). The increase in that latter group did actually push the annual total for titles selling at least one copy up, but the dearth of albums in

the top tiers will be of some concern.Almost 3m tracks were streamed

at least once in 2014, a more than twofold increase since 2012. Interestingly, the number played over 1m times almost tripled in 2014 and included a wealth of new titles alongside catalogue classics such as Dire Straits’ Romeo & Juliet and Lynyrd Skynyrd’s Free Bird.


Albums

Singles*

Streams

Some Albums That Sold Over 100,000 Copies in 2014 . . .

Some Singles That Sold Over 100,000 Copies in 2014 . . .

Some Tracks That Were Streamed Over 10m Times in 2014 . . .

The Vamps Meet The Vamps Virgin EMI

Hozier Take Me To Church Island

Michael Jackson Xscape RCA Label Group

Charli XCX Boom Clap Atlantic Records UK

Ben Howard I Forget Where We Were Island

Maroon 5 Maps Polydor

Lana Del Rey Ultraviolence Polydor

Beyoncé Drunk In Love RCA Label Group

Ed Sheeran Don't Atlantic Records UK

Duke Dumont Ft. Jax Jones I Got You Virgin EMI

George Ezra Blame It On Me Columbia Label Group

Arctic Monkeys Do I Wanna Know Domino Recordings

David Guetta


*Sales only: excludes streams

2013 20141 – 100 320,834 334,855

101 – 999 33,842 32,419

1,000 – 9,999 7,166 6,883

10,000 – 99,999 1,036 987

100,000+ 126 95

Total 363,004 375,239

2013 2014

1 – 100 1,196,494 1,184,258

101 – 999 65,776 61,433

1,000 – 9,999 13,835 12,627

10,000 – 99,999 2,012 1,627

100,000+ 198 166

Total 1,278,315 1,260,111

2013 2014

1 – 1,000 2,100,408 2,528,712

1,001 – 9,999 113,688 308,682

10,000 – 99,999 49,592 89,351

100,000 – 999,999 9,436 17,104

1m+ 539 1,790

Total 2,273,663 2,945,639


Sales by Threshold – Further Analysisalmost 1,800 tracks streamed over 1m times in 2014

Combined

This will be the last year of figures with the current arrangements in place – in Summer 2015 the global release day for singles and albums will be switching to Friday.

In 2014, Saturday remained the most important day of the week for album sales, with just over one in every six albums bought then. Monday was again the second-most important sales day, accounting for a slightly improved 16.8% share.

There are notable variations between artist and compilation purchasing patterns. The greatest share of sales in the former took place on Monday (17.6%), with Saturday a comparatively distant second (16.0%). With compilations Saturday is dominant, with Friday in second place and Monday third.

The majority of albums in 2014 were released on a Monday but in the singles market the release day was Sunday and this was reflected in the share of sales on that day (18.2%). Consumption in the streaming market is spread more equally across the week, with Saturday claiming the biggest share (15.9%). When the two measures are combined, Saturday runs out as the most important day for singles consumption, but only just ahead of Sunday.

Album Sales – by Day of Week, 2014

Singles Sales & Streams – by Day of Week, 2014

Artist Albums

Compil- ations

All Albums

Sales Streams

Sun 12.6 11.8 12.2

Mon 17.6 15.1 16.8

Tue 13.8 13.7 13.7

Wed 12.8 13.0 12.8

Thu 12.8 13.2 12.8

Fri 14.4 15.6 14.8

Sat 16.0 17.5 17.0

Sun 18.2 13.5 15.6

Mon 13.6 13.6 13.6

Tue 12.6 14.0 13.3

Wed 12.3 14.2 13.2

Thu 12.9 14.3 13.6

Fri 14.1 14.5 14.5

Sat 16.2 15.9 16.1


17.0%of albums were sold on

a Saturday in 2014

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0

Albums

Monthy Consumption Patterns 2014

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

21.3%

8.3%

6.1%

7.6%

6.3%

6.6%

8.3%

6.2%

8.4%

6.7%

7.7%

6.6%

9.8%

7.1%

8.8%

7.1%

7.5%

9.5%

7.7%

7.1%

10.0%

8.4%

9.0%

7.9%

12.8%

9.4%

10.3%

7.7%

7.5%

9.1%

7.5%

9.0%

8.2%

6.1%

5.5%

6.8%

Singles (Sales Only)

Streams


Note: March, June, September

and December are five week months


Sales by Day of Weekglobal release day set to change pattern of weekly sales

2013 2014Singles £0.93 £0.95

Albums (including digital) £7.60 £7.84

Albums (excluding digital) £7.80 £8.08

Single CD Albums £7.24 £7.58

Double CD Albums £9.33 £9.49

Digital Albums £7.16 £7.30

Artist Albums £7.38 £7.64

Compilation Albums £8.62 £8.78

2013 2014Under £4 15.0 12.3

£4.00 – £5.99 22.2 21.8

£6.00 – £7.99 19.8 20.3

£8.00 – £9.99 21.1 21.7

£10.00 – £11.99 13.7 15.3

£12.00 – £13.99 6.1 6.0

£14.00+ 2.0 2.7

Total 100 100

Average Retail Prices Total Albums – Sales by Price Group (% Volume Down)

Source: Kantar WorldpanelSource: Kantar Worldpanel

£12.00

£10.00

£8.00

£6.00

£4.00

£2.00

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average Retail Prices – Albums*

Source: Kantar Worldpanel

*includes digital from 2007

£10.

98

£10.

77

£10.

60

£10.

20

£10.

02

£9.8

1

£8.9

1

£8.4

7

£7.9

7

£7.6

5

£7.3

2

£7.0

2

£7.2

7

£7.6

0

£7.8

4

Kantar’s respondents reported price increases on all formats for recorded music to own in 2014. The cost of a single rose by two pence to 95p while for albums it increased to £7.84, a rise of 3.2%. The price of a physical album topped £8, with single disc releases at £7.58 and doubles at £9.49. Artist albums experienced a sharper price rise (+3.5%) than compilations (+1.9%).

These higher costs were reflected in the analysis of sales by price group – a smaller percentage of albums (34.1%) were bought for under £6 than in 2013 (37.2%), and a noticeably bigger proportion cost more than £10 (24.0%, compared with 21.8% in 2013).

This may be attributable to the greater volume of compilations bought in 2014 – sales of various artist titles increased by 1.3%, whereas artist albums experienced a 10.5% fall.


Retail Pricesalbum and singles prices rise in 2014

Percentage of

Population

Gifting Music

Gifting as a

Percentage of

Music Expenditure

Music Gifting Metrics 2014

30.122.1

2013 2014

Physical Albums 16.3 14.9

Digital (Gifted) 3.6 2.5

Digital (Gift card redeemed) 8.3 6.2

Total Gifting (i.e. any of above) 24.9 22.1

2013 2014

Physical Music 33.0 33.3

Digital Music* 23.9 25.2

All Music Expenditure 29.2 30.1

2013 2014




Total Gifting (i.e. any of above) 60.1 61.6

Percentage of Population Buying Music as a Gift (%)

Gifting’s Share of Music Expenditure (%)

Music Gifting – Expenditure by Gender and Age 2014 (% Down)

Percentage of Music Buyers Purchasing Music as a Gift (%)

*Including gift card redemption


*Excludes gift card redemption

Source: Kantar Worldpanel Source: Kantar Worldpanel

Kantar Worldpanel’s respondents record the intentions behind each of their purchases, giving an insight into the size of the music gifting market. As well as CDs bought as gifts the data also covers music directly gifted through iTunes, or redeemed via digital store gift cards.

When all three of these methods are totalled, just over 22% of the population made a gift purchase in 2014. Physical albums were, as to be expected, the most popular, with more than one in every seven people making a purchase as a gift for someone else. Over 61% of people who bought any kind of music throughout the year purchased a musical gift at some point.

Gifting represented a third of the physical music market by value in 2014, and just over a quarter of digital music spend. Women were marginally the bigger spenders on physical albums, whereas men edged them in terms of all music gifted (excluding gift cards, which are measured at the point of redemption). The profile of buyers became slightly younger in 2014, with the under 35s accounting for over 30% of spend, compared to 27.9% in 2013.


Physical Albums All Gifted Music*

Male 49.7 51.9

Female 50.3 48.1

13 – 19 9.3 10.4

20 – 24 5.4 6.2

25 – 34 13.2 13.8

35 – 44 20.3 20.3

45 – 54 25.6 24.6

55 – 64 16.0 14.8

65 – 79 10.2 9.8

Music Giftinggifting tops 30% of all music expenditure

2013 2014




Total Gifting (i.e. any of the above) 18.6 16.5

2013 2014




Total Gifting (i.e. any of the above) 7.8 6.5

Percentage of Population Buying Artist Albums as a Gift (%)

Percentage of Population Buying Compilation Albums as a Gift (%)


Note: Excludes gift card redemption

Source: Kantar WorldpanelSource: Kantar Worldpanel

All Albums Physical Albums Artist Albums Compilation Albums

Personal Use 60.5 53.3 64.3 45.2

Family Use 14.1 13.4 12.0 22.4

Gift 25.4 33.3 23.7 32.3

Reason for Purchase 2014 (% Down)

Artist Albums Compilation Albums

23.7 32.3

Percentage of Albums Bought as Gifts (%)

The motivations for purchasing artist and compilation albums remain distinctly different, according to Kantar’s panel data. Almost two thirds (64.3%) of artist album purchasing is attributed to ‘personal use’, i.e. the buyer’s intention is to use it for him or herself. Gifting represents almost a quarter of spend on artist titles, but this increases to almost a third (32.3%) for compilations. Less than half of spend on various artist titles is ascribed to ‘personal use’ – these titles are often bought for communal household listening, which accounts for 22.4% of the spend total. For artist purchases this usage amounts to only 12.0%.

Penetration rates in terms of the two markets were also measured. Across physical formats, digital gifting and gift card redemption, 16.5% of the population bought an artist album as a gift, with 6.5% buying a compilation for the same reason. Both levels of incidence were down on 2013’s.

22.4%More than one in five

compilations are bought for family use


Music Gifting a third of physical albums bought as a gift in 2014

Biggest Selling Artists – Albums 2014**

Biggest Artists – Singles Sales & Streams 2014*

Ed Sheeran Total: 4,503,670

Sam Smith Total: 2,935,108

Pharrell Williams Total: 2,217,941

Calvin Harris Total: 2,189,426

Clean Bandit Total: 2,116,224

Eminem Total: 1,970,282

One Direction Total: 1,927,452

Katy Perry Total: 1,867,624

Beyoncé Total: 1,860,572

Coldplay Total: 1,733,759

Ed Sheeran Total: 1,854,398

Sam SmithTotal: 1,247,703

One Direction Total: 793,034

George Ezra Total: 678,153

Paolo NutiniTotal: 668,172

Coldplay Total: 647,966

Paloma Faith Total: 635,085

Pink Floyd Total: 575,767

Olly Murs Total: 573,263

Taylor Swift Total: 460,545

1

2

3

4

5

10

6

7

8

9

1

2

3

4

5

10

6

7

8

9


The phenomenal year enjoyed by Ed Sheeran is underlined by the fact that he was the biggest selling artist in both the albums and singles markets. No matter which way the data is cut – streams only, singles sales only, album sales only, streams and singles sales combined – he takes pole position.

The main contributor to Ed’s album sales tally was of course his

2014-released X (1.689m sales) but his debut + also performed very creditably, selling over 146,000 copies. His remarkable 4.5m combined singles total was driven by over 1m sales and streams of his number one Thinking Out Loud along with plays and sales from over 40 other tracks. Sam Smith, Coldplay and One Direction also appeared in both rundowns.

**Source: BPI based on

Official Charts Company data.

Base: top 15,000 albums

*Source: BPI based on Official

Charts Company data.

Base: top 15,000 combined singles

sales and streams

Pink Floyd:Over half a million album sales in 2014

Taylor Swift: The only overseas artist

among the top 10 biggest-selling album acts of

the year

Biggest Artists ed sheeran is both top albums and singles artist in 2014


The percentage of all plays on audio streaming services accounted for by the year-end number one has barely changed from 2013 to 2014 (0.2% to 0.3%). When cumulative plays across the top 100 are analysed, however, a pattern emerges – the most-popular tracks comprised a much bigger share in 2014 (almost 10%), suggesting that these services are perhaps gaining a more mainstream audience.

The difference in consumption patterns between the streaming and singles sales-only markets is marked: the top 100 tracks in the latter chart accounted for a massive 22.7% of the total sold in 2014, demonstrating just how much more exploration of catalogue is occurring in streaming.

The pie chart looks at a very limited sample of albums – the top five from the 2014 artist rundown – but shows that across these the most listened-to track comprised almost a third of all plays. When the second most-popular track is factored in, plays across these two amounted to almost half (49.3%) of the album’s play count. The least-popular track was streamed less than a tenth (9.3%) of the times the top track was.

Share of Annual Streams by Year-End Chart Position

Top Tracks Stream Count as % of Album Total

41.5% 30.3%

9.2% 19.0%

Top Track

2nd

3rd

All other tracks

Number One Top 10 Top 40 Top 75 Top 100

12%

10%

8%

6%

4%

2%

0

0.2

%

0.3

%

2.0

%

9.6

% 1

.6%

4.1

%

5.7

%

6.0

%

8.4

%

7.0

%

9.9

%

2013 2014

Source: BPI based on

Official Charts Company data

Base: top five artist

albums, 2014 year-end chart

Source: BPI based

on Official Charts

Company data

49.3%The two most popular tracks accounted for almost half of plays on the biggest albums

Streaming: Primacy of Most Popular Trackstop 100 tracks account for 10% of play total

Top 10 Back Catalogue Albums 2014

Ellie Goulding Halcyon Polydor

Michael BubléChristmas Warner Bros

Ed Sheeran+Atlantic Records UK

Whitney HoustonThe Ultimate CollectionSony Music CG

Kate BushThe Whole StoryRhino (Warners)

Lana Del ReyBorn To DiePolydor

Calvin Harris18 MonthsColumbia Label Group

Jake BuggJake BuggVirgin EMI

Passenger All The Little LightsNettwerk

Emeli Sandé Our Version Of EventsVirgin EMI

1

2

3

4

5

10

6

7

8

9

100,000 copies in 2014

Kate Bush's The Whole Story

compilation sold over


While definitions vary, on these pages back catalogue titles are defined as those which were released two years before the year in question – so for 2014 this would mean all of those albums released no more recently than December 2012. Titles from 2013 are classified as ‘current’ releases.

Originally released in October 2012 (although subsequently reissued in a deluxe format), Ellie Goulding’s Halcyon was the biggest selling catalogue title, using this definition. It was placed at number 17 in the year-end chart (the only catalogue title to make the top 40) and sold over 366,000 copies. In total there were 10 back catalogue titles in the top 100 and 27 current releases, the top seller of which was the Frozen soundtrack, which dates from December 2012.

The near-clean sweep across the 2014 top 20 meant that new releases again comprised almost half (48.3%, up marginally from 48.2% in 2013) of sales across the overall albums market. New releases took an improved share of artist albums (up to 43.2% from 41.7%) but a lesser one in compilations (down to 62.2% from 68.2%), owing mainly to Frozen.

Back Catalogue Sales – Albums (% Units Down)

All albums

Artist Albums

Compilations

33.7%

40.4%

15.3%

18.0%

16.4%

22.5%

48.3%

43.2%

62.2%

Back Catalogue (2012 & before)

Current Releases (2013)

New Releases (2014)

Source: BPI based on Official

Charts Company data

Based on: top 15,000 albums

Source (chart left):

Official Charts Company

Annual Back Catalogue Share

2014 33.7%

2013 32.3%

2012 31.2%

2011 32.1%

2010 29.1%

Back Catalogue: Albumscatalogue albums represent a third of all sales in 2014

Top Five Back Catalogue Singles (Sales Only) 2014

Top Five Back Catalogue Streams 2014

Imagine Dragons Demons Polydor

Awolnation Sail Red Bull

Passenger Let Her Go Nettwerk

Foxes Let Go For Tonight RCA Label Group

Imagine Dragons Radioactive Polydor

Passenger Let Her Go Nettwerk

Imagine Dragons Demons Polydor

Imagine Dragons Radioactive Polydor

Macklemore/Ryan Lewis/Dalton – Can’t Hold Us Macklemore

Awolnation Sail Red Bull

1

2

3

4

5

1

2

3

4

5

Imagine Dragons

The singles market is much more

“hit-driven” than streaming, where

catalogue accounts for a much larger

share of

55.8%Music Market 2015 39

Back Catalogue – Singles and Streams 2014 (%)

Singles (sales only)

Streams

41.3%

55.8%

22.0%

22.0%

36.7%

22.2%

Back catalogue (2012 & before)

Current Releases (2013)

New Releases (2014)


Based on: top 15,000 singles sold; top 15,000 most-streamed tracks

New releases of downloads and physical singles in 2014 comprised just over a third of the annual sales total (36.7%). The biggest selling single of the year (Pharrell Williams’ Happy) was released in 2013 (thereby classifying it as a ‘current’ release), as was John Legend’s All Of Me in third place. In total six of the top 10 biggest sellers were new releases, from artists such as Clean Bandit, Mr Probz and Meghan Trainor.

Catalogue accounted for 41.3% of download and physical sales, even though only one track in the top 100 was released in or before 2012 (Imagine Dragons’ Demons).

Catalogue's popularity, however, is attributable to the sheer number of titles featuring outside the very top places in the chart – BPI’s analysis covered the top 15,000 tracks sold in 2014, and well over 10,000 of them were classified as back catalogue.

Analysis of the top 15,000 most-streamed tracks revealed that the overall share accrued by catalogue was considerably higher, at 55.8%. New releases made up five of the top 10 most-streamed songs but six back catalogue tracks were placed in the top 100, from artists such as Passenger, Awolnation and The Killers.

Back Catalogue: Singlesback catalogue titles account for over half of streams

Source (charts left):


Top 10 Compilations 2014Various Artists Now That’s What I Call Music 89 Sony Music CG/Virgin EMI

Original Soundtrack Frozen UMC

Various Artists Now That’s What I Call Music 88 Sony Music CG/Virgin EMI

Various Artists Now That’s What I Call Music 87 Sony Music CG/Virgin EMI

Various Artists Disney Sing-Along – Frozen UMC

Various Artists BBC Radio 1’s Live Lounge 2014 Rhino/Sony Music CG/UMTV

Various Artists Now That’s What I Call Christmas Rhino/Sony CG/Virgin EMI

Various Artists Keep Calm And Chillout Sony Music CG/Virgin EMI

Various Artists Now That’s What I Call Disney Sony Music CG/Virgin EMI

Various Artists Now That’s What I Call 21st Century Sony Music CG/Virgin EMI

1

2

3

4

5

10

6

7

8

9


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Units (m) 32.8 30.4 30.5 30.0 25.1 22.4 19.2 20.6 21.3 21.6

Compilations' share of all album sales (%)

Multi Artist Compilations 19.4 18.1 20.3 19.4 17.8 17.9 16.3 20.0 22.0 23.0

Multi Artist Soundtracks 1.3 1.6 2.0 3.5 2.2 1.5 1.1 1.0 1.3 2.5

Total 20.7 19.7 22.3 22.9 20.0 19.4 17.4 21.0 23.3 25.5

Compilation Sales


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

30%

25%

20%

15%

10%

5%

0%

Compilations’ Share of Album Sales 2005–2014 (%) For a third year running compilation sales increased, reaching a four year high of 21.6m and a market share of 25.5%. This sales increase (of 1.3%) was a result of a robust 4.6% rise in sales of compilation CDs – digital compilation sales fell by 7.7%.

The growth in physical was attributable to some big selling titles for which CD claimed large shares. The annual best seller, Now 89, had a CD share of 89.2%, whilst other popular releases such as Disney’s Frozen Sing-A-Long, Pop Party 13 and Silence is Golden all saw over 90% of their sales come from CD.

It was an exceptionally good year for Now compilations, with the brand accounting for 22% of compilation sales. It was also a bumper year for soundtracks (driven by the success of the Frozen OST) which represented 2.5% of all albums sold.

Multi-Artist Compilations Multi-Artist Soundtracks

19.

4%

18.

1%

20.

3%

19.

4%

17.

8%

17.

9%

16.

3%

20.

0%

22.

0%

23.

0%

1.3

%

1.6

% 2.0

%

3.5

%

2.2

%

1.5

%

1.1

%

1.0

% 1.3

% 2.5

%


Compilation Albums: Salescompilations account for one in four album sales


Digital’s Share of Compilation Sales

24.9%2014

27.3%2013

16.3%2011

10.7%2010

5.7%2009

2.6%2008

1.0%2007

23.5%2012

0.4%2006

From a virtually standing start

in 2006, digital now accounts for

a quarter of compilation sales,

although its share did fall in 2014.


2010 2011 2012 2013 2014

Pop 42.9 46.5 38.1 44.9 48.8

Dance 18.9 17.0 25.5 27.7 23.0

MOR/Easy Listening 6.5 6.0 5.9 5.0 7.5

R&B 13.9 11.8 9.7 6.9 6.9

Rock 9.0 7.6 8.2 6.0 5.4

Classical 2.5 3.4 4.2 4.3 2.9

Country 0.6 0.9 0.9 1.3 1.6

Hip Hop 0.8 1.0 0.6 0.6 1.4

Reggae 1.1 1.9 3.3 1.4 0.7

Childrens Audio 1.8 2.0 1.7 0.8 0.7

World 0.7 0.6 0.6 0.3 0.3

Jazz 0.4 0.7 0.5 0.3 0.3

Others 0.9 0.6 0.8 0.6 0.5

Total 100 100 100 100 100

2010 2011 2012 2013 2014

Supermarkets 46.5 45.1 43.3 42.6 44.0

Specialist/General 41.2 37.1 32.1 28.6 29.7

Digital 10.7 16.3 23.5 27.3 24.9

Independents 1.6 1.6 1.1 1.5 1.4

Total 100 100 100 100 100

Compilation Sales – by Type of Music (% Down)

Compilation Sales – by Type of Retailer (% Down)



The continued success of the Now series ensured that Pop was well represented again in the compilations market in 2014. Six of the 10 best selling various artist titles were Now titles, including Now...Christmas and Now...Disney, and an extraordinary 145 Now releases recorded sales on the Official Charts Company’s system in 2014, the great majority of which were classified as Pop. Big selling titles such as Silence Is Golden, Guardians Of The Galaxy – Awesome Mix 1 and I’m Every Woman were also all classed as Pop, and all featured in the year-end compilations top 20. The combined effect was that the genre’s share rose for a second successive year, to 48.8%.

Dance remained firmly in second place despite its share slipping to 23.0%, Ministry of Sound’s Eat Sleep Rave Repeat the biggest selling title in the genre. R&B’s share held firm, with The Trevor Nelson Collection 2 an outstanding performer.

Supermarkets continue to be the main channel for various artist titles, with approaching half of all purchases made there.

Compilation Albums: Sales by Genre and Type of Retailer pop’s share rises again

2/3 of spend

Men account for

54%of artist album buyers, but almost...

Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Artist Albums 54.1 45.9 10.2 7.6 16.2 18.5 20.9 15.5 11.0

Compilation Albums 52.8 47.2 7.8 6.8 16.9 21.7 22.9 13.1 10.8

Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Artist Albums 65.4 34.6 11.0 7.7 15.9 19.5 22.0 15.0 8.9


2013 2014

Artist Albums Only 57.4 58.9

Compilation Albums Only 11.4 14.4

Both 31.2 26.7

2013 2014

Artist Albums Only 3.3 3.6

Compilation Albums Only 1.6 1.8

Both 9.4 10.2

Artist and Compilation Album Buyers 2014 (% Across)

Artist and Compilation Album Spend 2014 (% Across)

Artist/Compilation Album Buyer Group Overlap (% Buyers Down)

Average Number of Purchases by Buying Group




Women make up a greater proportion of buyers in the compilations market (47.2%) than they do for artist albums (45.9%) but men are considerably ‘heavier’ buyers in the latter, their spend representing almost two thirds (65.4%) of the total. Buyers aged between 45 and 54 are most important in terms of head count and the amount they spend in both the artist and compilation albums markets, although in the latter buyers aged between 35 and 44 account for almost as great a share.

There was less crossover between artist and compilation album purchasers in 2014, with only 26.7% of all buyers active in both, compared to 31.2% a year before. The big success of releases by artists such as Ed Sheeran and Sam Smith may well have tempted lighter buyers to choose artist albums in 2014.


Compilation Albums: Buyer Groups reduced crossover between artist and compilation purchasers in 2014

Compilation Buyers Purchasing a ‘Now’ Title (%)32.2%

2013


35.4%

2014

1/3

of compilation buyers bought a 'Now' album in 2014

More than

Artist Albums Compilation Albums

Music Specialists 22.4 15.3

Home Delivery 28.0 21.0

Supermarkets 16.2 43.2

Digital 31.7 18.2

Chains/Multiples 1.5 1.9

Other 0.2 0.3

Artist Only Compilations Only Both

Digital 35.2 14.6 26.8

Physical 64.8 85.4 73.2

2014

All Compilations £8.78

Single Disc £6.72

Multi Disc £9.39

Digital £8.63

Retailer Share – Artist and Compilation Albums 2014 (% Expenditure Down)

Format Preferences by Buyer Group 2014 (% Expenditure Down)

Average Retail Price of Compilations



The supermarkets continue to excel in the compilations market, with 43.2% of spend taking place there in 2014. Digital retailers such as iTunes claimed the largest share of expenditure in the artist album market, with the home delivery channel (including retailers such as Amazon) a close second.

The average selling price of a compilation rose from £8.62 in 2013 to £8.78 in 2014, with the price of a multi-disc set now exceeding £9 – although commonly this will be comprised of two or three disc releases this will also encompass box sets.

Physical formats still account for a much greater share of compilation purchases than for artist albums. Among those who only buy artist albums, physical represents under two thirds of expenditure (64.8%) whereas for consumers who only buy various artist titles it makes up over 80%.


Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Artist Albums 54.1 45.9 10.2 7.6 16.2 18.5 20.9 15.5 11.0


Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Artist Albums 65.4 34.6 11.0 7.7 15.9 19.5 22.0 15.0 8.9



Compilation Albums: Formats and Price supermarkets are the most important retail channel for compilations

Rock dominated the LP market in 2014, accounting for three quarters of all vinyl albums sold and the entire top 10 in the year-end chart, the highest-placed non-Rock title being Aphex Twin’s Syro (classified as Dance) at number 15.

While the top seller was a title released in November 2014, five of the top 10 in the annual chart were reissues, with the 20th anniversary edition of Oasis’ Definitely Maybe the most popular, ahead of Pink Floyd’s second top 10 title, Dark Side Of The Moon. Collectively, albums released in 2014 accounted for 40.9% – some way behind the share (48.3%) of sales that was represented by new releases in the overall market.

¾Rock music accounted for three quarters of vinyl LP sales in 2014Rock 74.7%

Pop 9.0%

Dance 5.6%

Urban 4.4%

Folk 1.6%

Jazz/Blues 1.9%

Reggae 0.9%

MOR/Easy 0.7%

Other 0.4%

Country 0.8%

Vinyl LP Sales by Genre 2014

Vinyl LP Sales by Release Date 2014 (%)

Vinyl Singles Sales 2010–2014

54,6

19

63,4

79

67,2

72 87,5

27

95,9

39

96,2

25

122,

84115

1,92

1

128,

949

109,

842

7 inch

12 inch

47.740.9

11.4

New Release (2014)

Catalogue (pre-2012)

Current (2013)

2010 2011 2012 2013 2014

Source: BPI/Official Charts Company Source: Official Charts Company


The Vinyl Marketrock rules vinyl in 2014

Top 10 Vinyl Albums 2014Pink Floyd The Endless River Rhino (Warners)

Arctic Monkeys AM Domino Recordings

Royal Blood Royal Blood Warner Bros

Oasis Definitely Maybe Big Brother

Pink Floyd The Dark Side Of The Moon Rhino (Warners)

Jack White Lazaretto XL Recordings

The Stone Roses The Stone Roses Sony Music CG

Foo Fighters Sonic Highways Columbia Label Group

Led Zeppelin Led Zeppelin Rhino (Warners)

Oasis (What’s The Story) Morning Glory Big Brother

1

2

3

4

5

10

6

7

8

9

Vinyl LP Sales 1994–2014

Although comprising only a relatively small portion of the overall albums market, the ‘vinyl revival’ continues to attract great interest. After bottoming out at just over 205,000 in 2007, sales have grown in every year since and in 2014 reached almost 1.3m, the highest annual tally since 1995. That equated to a 1.5% share of all albums sold, up from 0.8% in 2013. While only 105

titles sold more than 1,000 copies on vinyl in 2013, according to the Official Charts Company, 198 did so in 2014 – a real indication of how quickly sales have grown.

Pink Floyd’s first studio album in 20 years, The Endless River, was the top seller on the format, with 2013’s biggest selling LP, Arctic Monkeys’ AM, in second place.

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


Pink Floyd

2.2%

1.6%

1.0%

0.7%

0.5%

0.6%

0.6%

0.5%

0.4%

0.4%

0.3%

0.2%

0.2%

0.1%

0.2%

0.2%

0.2%

0.3%

0.4%

0.8%

1.5%

1,453,718

1,410,905

1,083,206

817,018

642,102

672,866

751,857

761,558

657,127

579,248

453,254

351,224

250,926

205,292

208,526

219,449

234,471

337,041

388,768

780,674

1,288,510

Market Share 1994–2014


The Vinyl Marketvinyl sales reach 19-year high


Total 2014 Releases11× Platinum 1 -

8× Platinum 2 -

7× Platinum 2 -

6× Platinum 3 -

5× Platinum 6 1

4× Platinum 7 1

3× Platinum 13 1

2× Platinum 14 4

Platinum 34 12

Gold 89 43

Silver 141 51

BPI Platinum, Gold and Silver Awards almost 700 new certifications in 2014

Total 2014 Releases

Albums 312 113

Singles 361 76

Music Videos 21 4

Platinum Gold Silver

Albums 300,000 100,000 60,000

Singles 600,000 400,000 200,000

Music Videos 50,000 25,000 -

Total 2014 Releases

3× Platinum 2 -

2× Platinum 9 1

Platinum 56 12

Gold 94 22

Silver 200 41

Total 2014 Releases

10× Platinum 1 -

6× Platinum 1 -

3× Platinum 1 -

2× Platinum 1 1

Platinum 6 -

Gold 11 3

Awards Albums

Certification Levels (sales)

Singles Videos

Platinum AlbumPharrell Williams GIRL Sony Music

Pharrell Williams

Number one single Happy certified 3x Platinum

From 5 Seconds of Summer to Zhu, some 193 new release albums, singles and videos were certified as part of BPI’s Platinum, Gold and Silver Awards programme in 2014. Since its inception in 1973, more than 14,000 titles have been added to the roll call, with the latest modification to the qualifying criteria being the incorporation of streaming data into singles awards in 2014.

Albums released in 2014 accounted for over a third of all awards made on the format. The highest certification overall was an 11 × Platinum award for James Blunt’s 2005 album Back To Bedlam but Ed Sheeran’s X claimed the highest award for a 2014 release (5 × Platinum). Only one 2014- released single went Double Platinum (Clean Bandit’s Rather Be), but two titles went 3 × Platinum (Pharrell Williams’ Happy and Cher’s 2004 single Believe).

Several artists received their first award in 2014, among them Rixton, Charli XCX and Jungle.


Platinum Gold Silver

Albums 300,000 100,000 60,000

Singles 600,000 400,000 200,000

Music Videos 50,000 25,000 -

Debut Total Debut %

2010 22 31 71%

2011 25 33 76%

2012 21 27 78%

2013 16 22 73%

2014 18 24 75%

UK Non-UK

2010 18 13

2011 22 11

2012 15 12

2013 13 9

2014 14 10

Number of Breakthrough Artists Number of Debut Breakthrough AlbumsThis series analysis is undertaken annually to measure the number of breakthrough artists. The criterion for inclusion up to 2013 had been artists who have sold 100,000 copies of an album for the first time in the UK in a five-year period. While in previous years this has been measured solely across digital and physical sales, in 2014 the analysis extended to take account of streams relating to a particular album. There was a slight increase (24, up from 21 in 2013) in the number of artists considered to have become ‘breakthrough’ in 2014. These included several on their first album (Sam Smith, George Ezra, Royal Blood) along with others who have fulfilled the criteria but not with their debut (Gregory Porter, Ariana Grande, Pharrell Williams).

Of the 24 artists, 14 were British, including Ella Henderson, Collabro, Laura Mvula and Clean Bandit. The 10 international acts included Lissie, Baseballs and Kendrick Lamar. As usual there were variations in the time periods required for an album to become classed as ‘breakthrough’ – Lissie’s Catching A Tiger was released in 2010, for example, whereas 5 Seconds of Summer’s self-titled debut took just five weeks in the middle of 2014 to make the grade.

Number of Breakthrough Artists (UK / International)

InternationalUK


Source: BPI based on Official

Charts Company data

*Streaming included in methodology in 2014

2010

2011

2012

2013

2014* 14 10

13 9

15 12

22 11

18 13

George Ezra

Laura Mvula

Royal Blood


Breakthrough Artistsclean bandit, the vamps and ella henderson among 2014 uk breakthroughs

Top 10 Independent Albums 2014

Top 10 Independent Singles 2014

London Grammar If You Wait Metal & Dust Recordings

Dvbbs & Borgeous/ Tinie Tempah Tsunami (Jump) Ministry of Sound

Arctic MonkeysAM Domino Recordings

PassengerLet Her Go Nettwerk

Various ArtistsEat Sleep Rave RepeatMinistry of Sound

Arctic MonkeysDo I Wanna KnowDomino Recordings

Various ArtistsThe Annual 2014Ministry of Sound

SecondCityI Wanna FeelMinistry of Sound

Various ArtistsAnthems – HouseMinistry of Sound

AwolnationSailRed Bull

PassengerAll The Little LightsNettwerk

DJ Fresh/Jay Fay/Ms DynamiteDibby Dibby SoundMinistry of Sound

Various ArtistsThe Annual 2015Ministry of Sound

Milky ChanceStolen DanceIgnition

Various ArtistsRunning Trax 2014Ministry of Sound

Macklemore/Ryan Lewis/DaltonCan’t Hold UsMacklemore

Various ArtistsMarbella Sessions 2014Ministry of Sound

The 1975 ChocolateDirty Hit

Alt-J This Is All YoursInfectious Music

Artic Monkeys R U MineDomino Recordings

London Grammar’s If You Wait debut was the fifth biggest selling independent album of the year of its release, 2013, but its continued popularity saw it take the number one spot a year later. It was the 17th biggest selling artist album of the year overall and come December its all-time sales had passed the half- million mark.

Arctic Monkeys’ AM was another 2013 album that remained a strong

seller through into the next year and also made the artist album top 20 for 2014. Two tracks from the album also appeared in the top 10 independent singles rundown, which was headed up by Dvbbs & Borgeous’s Tsunami (Jump), a number one in March. Passenger’s Let Her Go – the top selling independent single of 2013 – was second.

London Grammar’s If You Wait and Dvbbs and Borgeous's Tsunami (Jump) were the top selling independent album and single in 2014

1

2

3

4

5

10

6

7

8

9

1

2

3

4

5

10

6

7

8

9

Independent Music: Chartslondon grammar top albums rundown in 2014



After a very strong 2013, during which they accounted for one in four albums sold in the UK, independent labels recorded a slightly lower collective share of sales in 2014. This was partly attributable to a comparative lack of top selling new titles, the top two independent albums both being originally released in 2013. In both the singles and albums markets the presence of independent

titles was down – only six made the year-end top 100 albums rundown, compared with 14 in 2013. That year did, however, see the breakthrough of not only London Grammar but Passenger, Macklemore & Lewis and Alt-J among others.

Accordingly, independent share fell across all the album sectors listed in the graphic.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

20.2

18.2

22.7

19.3

17.0

15.7

18.9

18.3

20.7

18.7

22.2

20.6

21.3

21.3

18.6

17.9

24.1

22.7

25.1

23.8

Independent Companies’ Market Share (% Units) Independent Market Share Within Sector 2014 (% Units)

Independent share fell across all the album sectors opposite, remaining strongest in the compilations market

Albums Singles

Source: Official Charts CompanySource: Official Charts Company

Physical

albums

Digital

albums

Artist

albums

Compilation

albums

22.8 26.2

22.3 27.9

Milky ChanceArctic Monkeys

Independent Music: Share of Marketindependents’ share slips in 2014


Albums (% Units) 2010 2011 2012 2013 2014

Universal Music 33.3 30.7 33.8 35.0 34.3

Sony Music 21.0 18.6 19.6 22.9 24.1

Warner Music 13.7 13.6 11.8 14.1 17.8

Ministry of Sound Group 2.3 2.1 2.4 3.0 3.0

Demon Music Group 1.9 1.6 1.7 1.6 1.4

XL Beggars 1.6 5.7 2.2 1.4 1.0

BMG Rights - - 0.1 0.2 1.0

Domino Recordings 0.3 0.6 0.4 0.9 0.7

Union Square Music 1.1 1.0 1.4 1.3 0.6

Delta 0.3 0.3 0.6 0.7 0.6

Not Now Music 0.3 0.2 0.3 0.4 0.6

PIAS Recordings 0.1 0.2 0.2 0.5 0.5

HNH 0.3 0.3 0.3 0.3 0.3

Cooking Vinyl 0.2 0.2 0.3 0.3 0.3

Go Entertain 0.2 0.5 0.4 0.4 0.2

Dramatico 0.1 0.3 0.2 0.4 0.2

Nettwerk - - - 0.4 0.2

Cherry Red 0.2 0.2 0.2 0.2 0.2

Snapper Music 0.1 0.1 0.2 0.2 0.2

New State 0.1 0.1 0.2 0.2 0.2

Nuclear Blast - - 0.1 0.2 0.2

Kobalt Music Group - - - - 0.2

Corporate Group Market ShareFor a third year running Universal Music accounted for over a third of all albums sold, although its share decreased very slightly in 2014 to 34.3%. Its biggest titles were Sam Smith’s In The Lonely Hour and the soundtrack to the film Frozen, and the company also saw continued success with the Now series of compilations, released as a joint venture with Sony Music.

Sony Music’s share rose for a third successive year to almost a quarter of the market, driven by successes with the new albums by artists such as George Ezra, Paloma Faith and One Direction, as well as the aforementioned Now titles share. Warner’s percentage of sales also grew, aided by the phenomenal success of Ed Sheeran alongside strong performances from Paolo Nutini, Coldplay and Pink Floyd.Ministry remained the biggest independent group in the share table, with BMG Rights moving up to seventh helped by number one albums from Alt-J and You Me At Six.


BMG Rights moved up to seventh in the share table, driven by number one successes from Alt-J and You Me At Six

Market Share: Corporate Group – Albumsbmg rights enter top 10

Alt-J


Source for all tables: Official Charts Company

Singles – Sales Only 2012 2013 2014

Universal Music 35.6 41.8 39.0

Sony Music 20.4 21.2 25.2

Warner Music 14.7 14.1 17.1

Ministry of Sound Group 1.4 1.8 1.4

XL Beggars 1.6 1.1 0.9

BMG Rights - 0.2 0.6

Domino Recordings 0.3 0.6 0.4

Demon Music Group 0.3 0.4 0.3

PIAS 0.1 0.2 0.3

Infectious Music 0.1 0.1 0.3

Macklemore - 1.0 0.2

Nettwerk 0.1 0.7 0.2

Red Bull 0.1 0.1 0.2

Dirty Hit - 0.2 0.1

Cooking Vinyl 0.1 0.1 0.1

Silva Screen 0.1 0.1 0.1

Epitaph 0.1 0.1 0.1

New State 0.1 0.1 0.1

Warp 0.1 0.1 0.1

Ninja Tune 0.1 0.1 0.1

Defected 0.1 0.1 0.1

VP 0.1 0.1 0.1

Super Cassettes 0.1 0.1 0.1

Dramatico 0.1 0.1 0.1

Because Music 0.1 0.1 0.1

Streams Only 2014Universal Music 37.2

Sony Music 21.5

Warner Music 17.8

XL Beggars 2.2

Domino Recordings 1.1

PIAS 0.9

BMG Rights 0.7

Infectious Music 0.4

Epitaph 0.4

Nettwerk 0.3

Ninja Tune 0.3

Ministry of Sound Group 0.3

Macklemore 0.2

Dirty Hit 0.2

Because Music 0.2

Red Bull 0.2

Warp 0.2

Cooking Vinyl 0.2

Hopeless 0.2

Demon Music Group 0.2

M83 Recording Naive 0.1

Peacefrog 0.1

Ignition 0.1

Wichita Recordings 0.1

Believe Digital 0.1

Combined Singles/Streams 2014Universal Music 38.1

Sony Music 23.4

Warner Music 17.5

XL Beggars 1.5

Ministry of Sound Group 0.9


BMG Rights 0.7

PIAS 0.6

Infectious Music 0.3

Demon Music Group 0.3

Epitaph 0.2

Nettwerk 0.2

Ninja Tune 0.2

Macklemore 0.2

Cooking Vinyl 0.2

Red Bull 0.2

Because Music 0.1

Ignition 0.1

Warp 0.1

Silva Screen 0.1

Dirty Hit 0.1

Kobalt Music Group 0.1

Hopeless 0.1

Union Square Music 0.1

Rise Records 0.1

No matter which way the singles market is analysed, Universal remained the company with the largest share in 2014. In terms of sales only they claimed 39.0% (down slightly from 2013), and a similar percentage when only streams were considered (middle table on this

page). Sony and Warner also remain in second and third place across all three measures (sales only, streams and combined sales/streams) but Ministry slip to fifth in the latter owing to their much smaller streaming share.

Universal’s successes in 2014

included number ones for Sam Smith, Route 94, Kiesza and Ariana Grande, while Sony scored the biggest hit of the year from Pharrell Williams, alongside number ones from artists such as Calvin Harris, Mark Ronson and Pitbull. Warner’s chart toppers included tracks

from David Guetta, Nico & Vinz and Lilly Wood & Robin Schulz. BMG Rights’ share of sales rose to 0.6%, with their streaming share slightly higher (0.7%) – labels whose share now reports to them include Skint, Infectious, Sanctuary and Mute.

(% plays)(% units) (%)

Market Share: Corporate Group – Singles and Streamsuniversal remains top in 2014


Physical Albums 2014

Arvato 63.9

Sony DADC UK 20.9

PIAS Arvato 4.2

Proper Music 1.9

ADA Arvato 1.8

Essential Proper Music 1.3

Plastic Head 0.9

Fat Cat Int 0.8

Select 0.6

Cinram 0.5

Absolute Arvato 0.4

SRD 0.3

RSK Sony DADC UK 0.3

Little Amber Fish 0.3

harmonia mundi 0.2

Import 0.2

Shellshock SRD 0.2

PIAS Sony DADC UK 0.2

Discovery 0.2

Pickwick 0.1

Pinnacle 0.1

Nova Arvato 0.1

Cadiz Arvato 0.1

All Albums 2014

Arvato 43.3

Sony DADC UK 14.5

Universal Music 10.4

Sony Music 7.6

Warner Music 5.7

PIAS Arvato 2.8

Proper Music 1.3

The Orchard 1.3

ADA Arvato 1.2

PIAS UK 1.1

Essential Proper Music 0.9

FUGA 0.7

Plastic Head 0.6

ADA Warner Music 0.6

Fat Cat Int 0.5

Select 0.5

Beggars Group 0.4

Cinram 0.3

Essential 0.3


SRD 0.3

Absolute Arvato 0.3

Tunecore 0.2

INgrooves 0.2

RSK Sony DADC UK 0.2

2014


Sony Music 23.6

Warner Music 17.7

The Orchard 3.9

PIAS UK 3.3

FUGA 2.0


Beggars Group 1.3

Sony DADC UK 1.1

Essential 1.0


Tunecore 0.7

INgrooves 0.7

Believe Digital 0.6

Absolute 0.6

AWAL 0.5

New State Digital 0.4

ROM 0.4

Select 0.3

Proper Music 0.2

SRD 0.2

Ninja Tune 0.2

X5 0.2

Arvato 0.2

RSK 0.2

Arvato and Sony DADC UK handled physical distribution for all of the titles in the combined (artist and compilations) top 20, with Arvato accounting for the top five. Sony DADC UK made notable inroads into Arvato’s share, however, with a fifth of physical sales going through them in 2014, from Sony labels as well as Ministry of Sound, Demon, Union Square, Go Entertain and Metal Blade. PIAS Arvato ranked third, with labels such as Domino, XL Recordings and Warp among those whose product they distributed.

The three majors led the digital share table but The Orchard, who distributed albums by Demon, Daptone and Light In The Attic among others, rose up to fourth place. PIAS UK, whose clients include Big Brother and Infectious, took a 3.3% share while FUGA were placed fifth, their main share contributor being Ministry of Sound.

Source for all tables:


(% units) (% units) (% units)

Market Share: Distributors – Albumsthe orchard climbs to fourth in digital albums share table

Digital Albums


Streams 2014


Sony Music 21.3

Warner Music 17.8

PIAS UK 3.9

The Orchard 3.2

Beggars Group 2.2



INgrooves 0.9

Tunecore 0.9

Essential 0.8

Believe Digital 0.6

AWAL 0.5

Absolute 0.4

ROM 0.4

Ninja Tune 0.3

Sony DADC UK 0.2

Warp 0.2

SRD 0.1

SC Distribution 0.1

Kudos 0.1

Finetunes 0.1

FUGA 0.1

Hopeless 0.1

Spinnin' 0.1

Combined Singles Sales/Streams 2014


Sony Music 23.1

Warner Music 17.4

PIAS UK 3.1

The Orchard 2.9


Beggars Group 1.5

Tunecore 1.0


INgrooves 0.7

Essential 0.6

FUGA 0.6

Believe Digital 0.6

Absolute 0.4

AWAL 0.4

Sony DADC UK 0.4

ROM 0.3

Ninja Tune 0.2

Arvato 0.2

Warp 0.1

SRD 0.1

CD Baby Hit Media 0.1

Finetunes 0.1

Kudos 0.1

SC Distribution 0.1

Singles – Sales Only 2014


Sony Music 24.9

Warner Music 17.0

The Orchard 2.6

PIAS UK 2.3


Tunecore 1.1

FUGA 1.0

Beggars Group 0.9

INgrooves 0.6

Sony DADC UK 0.5

Believe Digital 0.5

Essential 0.5

Absolute 0.4

AWAL 0.4


Arvato 0.3

ROM 0.2

Ditto Music 0.1

CD Baby Hit Media 0.1

Super Cassettes 0.1

Ninja Tune 0.1

SRD 0.1

New State Digital 0.1

Label Worx 0.1Source: Official Charts Company

Universal tops the share table across all three methods of measurement on this page (sales only; streams only; sales and streams combined). Its highest placed single in the year-end combined chart was Sam Smith’s Stay With Me (at number eight) but half of the top 100 were distributed by Universal, including artists on the Virgin EMI group of labels (Katy Perry, Taylor Swift, Avicii), UMTV (Sigma, Fuse ODG), Island (Ariana Grande, Hozier) and Polydor (OneRepublic, Ellie Goulding, Imagine Dragons).

Sony’s share in the singles market fell just short of 25% on a sales-only basis, and a slightly smaller 23.1% when streams were factored in. Its successes included hits on the RCA Label Group (Pharrell Williams, Mr Probz, Sia), Syco (Ella Henderson, One Direction) and the Columbia Label Group (John Legend, Rita Ora, The Script). Warner’s 17.4% combined share included successes on Atlantic Records UK (Ed Sheeran, Clean Bandit, Charli XCX), Warner Bros (Jason Derulo, Nico & Vinz) and Parlophone (Coldplay, David Guetta) among others.

PIAS UK’s biggest singles came from Awolnation (on the Red Bull label) and Milky Chance (Ignition), with tracks from Oasis, Temper Trap and Two Door Cinema Club also popular.

(% units) (%)

Charli XCXKiesza Rita Ora

Market Share: Distributors – Singles and Streamsuniversal music take top spot in sales and streams tables

(% plays)


1

2

Charts take the next leap forward with streaming

In July, one of the biggest changes to the UK singles chart in its history happened when the Official Charts Company began including streams from services such as Spotify, Google Play and Deezer, making this the first time the chart was not entirely sales-based. Streams also now count towards certified awards for singles.

The UK followed a similar move in Germany (in January 2014) and it currently tabulates 100 streams as the equivalent of a sale. By September, Meghan Trainor’s All About That Bass became the first song to enter the

top 40 on streams alone. In March this year, the Official Charts Company extended this to the albums chart, using a new down-weighting system to ensure the two most popular songs of an album did not skew its overall performance. This slots into a wider global move to bring the charts in line with changing consumption patterns: streams already counted towards both the singles and albums charts in Sweden and the US expanded its album chart to include streams in December 2014.

10 Trends Defining 2014

Meghan Trainor’s All About That Bass became the first song to enter the top 40 on streams alone

While streaming services boast catalogues of more than 25 million tracks, some artists and labels continue to move with some caution in this area. Headlines from 2014 included the Oasis and John Lennon catalogues being made available to streamers while the Ministry of Sound label settled its legal dispute with Spotify over user-generated playlists to license its catalogue to the service. The debate spread beyond the pages

of the trade press to mainstream media in November, however, when Taylor Swift removed her music from Spotify, arguing she only wanted it to be available to subscribers and not those on the free, ad-supported tier (a licensing point Spotify would not concede). Other major acts have previously staggered the release of their newest albums on streaming services and some artists and labels are still yet to license their catalogues

Streaming and the holdout debate

in full, but the wholesale removal of the work of such a high profile artist drove much heated discourse. The discussion about the effect of the various approaches to availability will no doubt continue in 2015 as all interested parties weigh up the pros and cons in what is a very nuanced debate.


54

3Analytics and data step into the limelight

Data and analytics have been two of the great benefits of digital for the industry but they have tended to be processed and dissected behind the scenes. 2014 saw them come of age and step into the spotlight as 300 Entertainment, the new label headed by former Warner Music executive Lyor Cohen, partnered with Twitter to use its data in its A&R and marketing. This was followed by Warner striking a similar deal with Shazam. SoundCloud also expanded its own data offering to allow artists on its Pro Unlimited tier to have access to fan location analytics to help them refine their marketing and touring. In the streaming space, iTunes acquired Musicmetric, Spotify bought The Echo Nest, Rdio bought TastemakerX and Deezer acquired Stitcher – all with a view to using data to improve discovery and recommendations. Giving analytics and data a more pronounced consumer-facing application is something that will undoubtedly grow in the coming years.

New arrivals and the march towards improved audioEven though the music service space is rich in its diversity, more new offerings are coming to market. The biggest launches of 2014 included the arrival of Beats Music in the US (although, soon after launch, Apple acquired it) and the initial roll out of Music Key, YouTube’s first move into a subscription offering. There were also key artist-led product launches: following a record-breaking funding round on Kickstarter, Neil Young’s Pono Music service and player also got off the ground, initially only in the US, while Garth Brooks, opting out of licensing music to other services, created GhostTunes to make his entire catalogue available digitally in one place. Samsung, while winding

down its Music Hub service, launched Milk, its challenger to Pandora, while Amazon created the Prime Music service as an extra feature of its Prime home delivery subscription package. On top of this, Vessel, blending free access and subscriptions, arrived at the start of 2015 in an attempt to shake the video streaming market while soon after that dance-centric Beatport unveiled a free on-demand and ad-supported streaming element as it adapted to the market.

With so much competition, finding a point of differentiation is going to be increasingly important for digital services. 2014 saw improved audio make serious strides towards the mainstream consumer segment rather

than just focusing on audiophiles. Deezer made its US debut as Deezer Elite, a high-definition offering that costs around twice that of a standard subscription service; by February 2015, it was rolled out in 150 markets globally, including the UK. Norwegian company WiMP expanded its WiMP HiFi high-def service to the UK and US under the name of Tidal.

Meanwhile Rdio pushed up its streaming quality to 320kbps, under the Artists For Quality initiative, while Technics announced that its 24-bit download service, Technics Tracks, would arrive in early 2015. Added to this, 7digital, which has been selling FLAC files for a number of years, became the first UK download

service to adopt Meridian’s new high-resolution MQA format which is designed to deliver high quality audio music without sponging up excessive bandwidth. Following this, Naxos launched ClassicsOnline HD in January 2015, claiming to be the first lossless streaming service in the classical sector.

Audio looks set to become the next upsell option in the streaming market – both drawing in those who previously regarded streaming audio as inferior to CD or vinyl as well as doubling the annual spend by subscribers, showing that competition does not have to based around just lowered prices, ISP/telco bundles and exclusivity of catalogue.


8

76Acquisitions, investment and closuresThe biggest digital music acquisition of 2014, if not of all time, was Apple buying Beats, and with it the newly launched Beats Music, for $3bn in May. Apple is keen to migrate iTunes from just selling downloads, especially as sales flatten or slip around the world, and Beats Music gives it a fast route into streaming. Its plans are, as yet, not public but rumours heavily hint it could be baked into the next iOS update for Apple devices and possibly undercut competition subscription services by as much as 50%. In January 2015, Deezer bought Muve, the bundled mobile service developed by Cricket in the US and in March WiMP/Tidal was acquired by Project Panther, a company headed by Jay Z, for $56m.

Also of note was Spotify buying The Echo Nest to improve its recommendations and digital distributor The Orchard acquiring gig streaming service Balcony.TV. 2014 also saw all three major labels buy into mobile recognition tool Shazam, a deal made all the more important considering how key its tagging data is to their marketing. At the end of the year, MixRadio, which had been spun out of Nokia after Microsoft bought its phone arm, was bought by messaging app Line, hinting at some exciting potential moves in 2015. Unfortunately, some services failed to last the distance and were closed in the past year – among them Sony Music Unlimited, budget subscription service Bloom.fm and Samsung’s Music Hub.

Marketing’s boldest movesOne of the most innovative and exciting parts of the digital music business is how marketing has adapted to make the most of new distribution channels and connect with audiences in new ways. The most significant campaign of the year was U2 giving away their latest album, Songs Of Innocence, to all 500m of iTunes’ registered users. A marketing coup but one that came with degree of controversy as Apple had to issue a workaround delete option following consumer opposition to being pushed music they did not request. A bold step but also one in which valuable lessons for all were learned. BitTorrent also made serious moves to present itself as a key marketing channel and revenue source for artists and secured its biggest coup to date with the surprise release of Thom Yorke’s latest solo album, Tomorrow’s Modern Boxes, where it tested its paygate technology, thereafter opening it up to all artists. Other notable campaigns included Ed Sheeran taking over the iTunes top five with instant grat tracks the week ahead of X being released and Sam Smith having a live performance, in conjunction with Google Play, from London that took over the entire ad break during Channel 4’s Alan Carr: Chatty Man.

D2C and fan funding moves up a gearThe most significant fan funding initiative of 2014 was unquestionably Neil Young raising $6.2m on Kickstarter for his Pono Music high-definition audio service, making it the third most successful funding project in the platform’s history. It cast more light on how artists of all sizes can turn to their fans or the wider funding community to take projects from conception to fruition. It is the

direct descendant of D2C (direct-to-consumer) offerings from artists’ own websites as well as via platforms such as Topspin and through digital music services such as Spotify, using digital to sell physical goods that go beyond the music itself. Also of note in this space in 2014 was Island Records launching Fan Republic in conjunction with Indiegogo for fans to discover and support new acts globally,

while services such as PledgeMusic continue to partner with artists and labels alike to offer exclusive pre-releases. After her phenomenal success on Kickstarter in 2012, raising $1.2m, Amanda Palmer turned to Patreon at the start of 2015, thereby considerably raising the profile on it as a way to fund artists on a rolling, rather than project-by-project, basis.

$6.2m raised by Neil Young on Kickstarter for his music service Pono


10

9

Playlists come of ageWith streams now counting towards the UK singles chart, playlists really came of age in 2014 – standing as a key way for record labels to market to particular consumer segments. All three majors have their own playlist platforms – Digster (Universal), Filtr (Sony) and PlaylistMe (Warner) – and Warner also acquired UK company Playlist.net (formerly ShareMyPlaylists), symbolising how important they are for their future plans. Some of Lorde’s breakthrough success, for example, has been attributed to her song Royals appearing on Sean Parker’s Hipster International playlist on Spotify and

the Swedish streaming company has also attributed the mainstream success of acts such as Mr Probz to a groundswell of support coming from track inclusion on popular playlists. Developments in Sweden, where streaming is at a more advanced stage in terms of consumer adoption and industry marketing, give a solid indication of what the UK can expect in the coming years. Playlists there are used to introduce and promote both new tracks and new artists, being advertised via traditional media in the same way the industry used to advertise compilation albums.

Piracy: the net tightensPiracy remains a key issue for the music industry and this year was one of important rulings and landmarks. In a report published in October, Google revealed that it had been sent requests to take down 500m web links that pointed to infringing sites in the previous three years, with half of those requests coming in the first eight months of 2014 alone. Of those, 116m were reported to Google by the BPI since June 2011 and around 300,000 takedown requests are being filed by the organisation daily. The economic scale of online piracy was laid out in the Good Money Gone Bad report by the Digital Citizens Alliance in the US that stated that online piracy sites made $227m from ads

in 2013. In the UK, there are currently 63 website blocks in place and the net effect is that the number of British people accessing pirate sites monthly has fallen from 7m at the start of 2013 to 5m by the end of 2014. Comparing monthly user data for blocked sites before and after they were blocked shows that UK use is down on average by 88%. Over 170 sites have been submitted to Operation Creative, a cross-industry initiative with City of London Police with a modus operandi of seriously disrupting infringing sites while 193 separate criminal investigations have resulted in police and/or Trading Standards enforcement.

“BPI believes that artists and labels deserve to be paid for their talent, work and investment. Protecting copyright is fundamental to the music business because artists depend on royalties for their living and labels can only sign the next band if they make a return on investment in other artists.”Geoff Taylor – Chief Executive, BPI


2012 2013 2014

Wireless Speakers 0.6 1.6 3.4

Households with a Multi-Room Audio System 0.2 0.3 0.5

Soundbars 0.3 0.8 1.6

Hi-Fi Systems 13.2 12.4 11.7

Integrated Hi-Fi Systems with Wireless Features 0.4 0.8 1.3

FM/AM Audio Receiver 51.3%

DAB Radio Receiver 30.0%

Laptop/Netbook 24.0%

Mobile/Smartphone 20.5%

Desktop 15.9%

Television 13.9%

Wired Sound System/Hi-fi 10.5%

Internet/wi-fi-connected Radio Receiver 7.8%

iPod 7.2%

Tablet/e-reader 6.7%

2012 2013 2014

Smartphones 50.7 52.0 54.0

Tablets 11.5 19.3 23.9

2012 2013 2014

Headphones 11.3 12.1 12.0

2012 2013 2014

2.4% 6.1% 12.7%

0.6% 1.0% 1.7%

1.3% 3.0% 6.0%

49.5% 46.4% 43.7%

1.7% 3.0% 4.7%

2012 2013 2014

80.8% 82.4% 85.2%

18.3% 30.6% 37.8%

In-Home Hardware

Audio Listening – Devices

Mobile Devices

Headphones

Installed Base (m)

Installed Base (m)

Shipments (m)

Household Penetration (%)

Population Penetration (%)

Source: Futuresource Consulting

Source: Audiomonitor

Base: 2,692 online respondents, March 2015

Q: What devices did you use to listen to audio yesterday?

Data from the technology consultancy Futuresource shows that one in eight UK households owned a wireless speaker in 2014. While multi-room systems are still at a relatively low level of penetration, the concept of streaming music via Bluetooth or wi-fi is becoming less alien to music lovers and the freedom offered, along with increasingly affordable standalone speakers, is helping them to become a mainstream proposition. Over a third of adults now own a tablet – almost double the penetration rate of two years ago – and smartphone ownership continues to rise. Increased familiarity with both will no doubt help consumers become better acquainted with the myriad options now available for accessing their favourite music.

The second table shows data from Audiomonitor’s 2015 music consumption survey. Among other topics, respondents were asked which devices they had used to listen to audio the previous day. Radio came out top, with over 70% stating that they did so when FM/AM, internet and DAB methods were combined. Over a fifth had used a laptop or their phone, with the response rate dropping to 16% for desktop computers. When all computer types were combined, over a third (35.4%) reported having used one to listen.

51.3%

24.0%20.5%

Music Listening wireless hardware begins to find foothold


2013 2014

Co-op 2,000 2,800

Tesco Express 174 677

M&S 703 798

Sainsbury’s Local 262 648

WHSmith 636 639

BP 390 404

Wilko 365 374

Game 328 326

Waterstones 270 275

Matalan 217 217

BHS 179 173

Debenhams 155 156

Disney 39 35

Morrisons M Local 3 18

Primark 161 170

WHSmith Travel n/a 720

Other Music Outlets

Key Permanent Music Retail Outlets

2010 2011 2012 2013 2014HMV 269 244 238 141 128

Independent Specialists 281 295 293 296 339

Tesco 877 892 907 925 922

Sainsbury's 557 570 579 589 593

Asda 389 514 552 579 588

Morrisons 436 470 479 500 515

That's Entertainment n/a n/a n/a n/a 32

While the number of HMV stores selling music decreased again in 2014 there was growth elsewhere. The number of independent retailers rose above 300 according to figures provided by Millward Brown, while Sainsbury’s, Asda and Morrisons all added to the number of their outlets stocking CDs. For the first time the 32-store chain That’s Entertainment was included in the figures and there was also considerable growth in the number of outlets stocking music on an occasional or limited basis. These included a large increase in the number of Co-op shops selling at least some music, along with a healthy increase for Tesco Express.

Independent stockists

numbers rise in 2014 to

339

(Seasonal/Event Stockists)

Source: Official Charts Company / Millward Brown


/ Millward Brown

Over

7,000 supermarkets selling music

in 2014

Retailers Selling Recorded Musicmore supermarkets and independent stores selling music in 2014


Retailer Share/Spending on Recorded Music amazon tops retailer share table in 2014


2013 2014Music Specialists 18.6 17.5

HMV 16.3 15.4

Fopp 0.7 0.6

Other Specialists 1.6 1.5


Amazon 13.1 17.1

Play 1.8 1.0

Tesco 0.6 0.6

Sainsbury's 0.8 0.1

Asda 0.2 0.1

eBay 0.7 0.8

Other Home Delivery 2.5 2.4


Tesco 6.3 5.2

Sainsbury's 3.3 4.2

Asda 6.3 6.8

Morrisons 1.8 1.6

Digital 42.0 40.9

iTunes 29.2 26.7

Amazon 9.0 9.9

7digital 0.7 0.3

eMusic 0.5 0.6

Google Play Store 0.3 1.2

Other Digital 2.3 2.2


Other 0.2 0.2

Retailer Market Shares – All Music Purchased (% Expenditure)

Amazon increased its share of all music expenditure again in 2014, its home delivery service claiming 17.1% of the total and its download store just under 10%. When the two are added together Amazon’s share (27.0%) exceeded iTunes’ (26.7%) for the first time.

While the share of many of the home delivery retailers fell, Amazon’s increase drove an overall rise collectively accrued by the outlets in this channel (22.1%). HMV’s relative dominance of the specialists meant that its fortunes are always mirrored in the sector’s overall performance, and a decrease occurred in both. The Supermarkets’ overall share increased slightly while digital’s fell, with iTunes’ decrease not offset by Amazon’s rise, although Google Play’s share rose significantly, with the service’s ‘Album Of The Week’ deals among a number of promotions heightening its profile.

Retail spending on recorded music again exceeded £1bn in 2014, with the value of subscription streaming up by 59%. The overall market value fell by 3.5% however, with spend on digital albums falling for the first time.

2/3of music spending on physical and download is accounted for by HMV, Amazon and iTunes

2010 2011 2012 2013 2014 % change

Physical Singles £6.9 £4.0 £3.0 £3.2 £3.3 +1.1%

Digital Singles £133.8 £151.8 £167.5 £164.6 £138.8 -15.7%

Total Singles £140.7 £155.8 £170.5 £167.8 £142.1 -15.3%

Physical Albums £783.9 £714.8 £584.6 £540.8 £514.0 -4.9%

Digital Albums £146.3 £181.2 £216.2 £232.7 £199.3 -14.4%

Total Albums £930.2 £896.0 £800.8 £773.5 £713.3 -7.8%

Music Video £43.9 £44.5 £32.6 £30.4 £18.0 -40.8%

Subscriptions £31.5 £45.1 £77.1 £105.8 £167.7 +58.5%

Other Digital £10.3 £8.4 £6.9 £9.9 £8.4 -15.2%

Total £1,156.6 £1,149.8 £1,087.9 £1,087.4 £1,049.5 -3.5%

Value of Retail Sales (£m)

Consumer Spending on Music – Physical vs Digital 2005 – 2013 (£m)

Digital Physical

2005 £38.0 £1,809.2

2006 £70.0 £1,564.3

2007 £124.0 £1,267.3

2008 £192.4 £1,160.3

2009 £271.6 £992.0

2010 £321.9 £834.7

2011 £386.5 £763.3

2012 £467.7 £620.2

2013 £513.0 £574.4

2014 £514.2 £535.3

Source: Official Charts Company & BPI

estimates

Source: Official Charts Company & BPI estimates


Retailer Penetrationamazon home delivery and google play see shopper increases in 2014



*Incomplete data for 2013

2013 2014Total Streaming inc. YouTube 37.8 41.9

Total Streaming exc. YouTube 25.0 26.8

Free Streaming 21.9 23.6

Paid Streaming 4.9 6.4

YouTube 24.2 28.8

Spotify 15.0 17.1

Google Play Music 2.1 4.2

Deezer 2.3 2.4

Vevo* 0.8 2.3

Blinkbox Music 1.4 1.9

Last.fm 2.8 1.7

Xbox Music 1.0 1.1

Napster 1.0 0.8

Sony Music Unlimited 0.5 0.6

Rdio 0.5 0.6

Bloom.fm 0.2 0.3

Rara* - 0.1

2013 2014Music Specialists 10.6 8.5

HMV 9.8 7.8

Fopp 0.5 0.4

Other Specialists 1.5 1.1


Amazon 10.7 11.2

Play 1.9 1.0

Tesco 0.7 0.6

Sainsbury's 1.0 0.1

Asda 0.3 0.1

eBay 1.0 1.0

Other Home Delivery 1.9 1.6


Tesco 5.6 4.4

Sainsbury's 3.7 3.6

Asda 5.0 4.3

Morrisons 2.1 1.7

Digital 20.9 17.5

iTunes 14.0 11.6

Amazon 8.1 6.6

7digital 0.4 0.3

eMusic 0.5 0.3

HMV 0.3 0.1

Google Play Store 0.5 1.0

Other Digital 2.4 2.3


Other 0.3 0.3

Percentage of Population Purchasing Music – Retail Channel (%)

Percentage of Population Using Streaming Services (%)

The first table on this page looks at the percentage of the population (aged 13 and over) that shopped for music at each of the various retailers at least once in 2014. Penetration was down in each at channel level, falling below 20% for the digital retailers and 10% for the specialists. There were isolated cases within each channel where an individual retailer did see more customers, however – penetration rose at Amazon’s home delivery arm (up from 10.7% to 11.2%) as well as at Google Play.

The second table isolates penetration levels for the two years across the various streaming services. Over a quarter of the population reported having watched or listened to music on YouTube at some point in the year, with 17.1% claiming to have used Spotify, either on the free or paid (premium) tiers.


Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Survey Population 49.5 50.5 9.1 8.7 16.9 16.4 17.7 14.3 16.9

Total Music 52.8 47.2 10.4 8.7 18.2 18.7 19.4 13.8 10.7

Total Albums 52.9 47.1 10.0 7.7 16.5 18.6 20.9 15.0 11.2

Digital Music 58.1 41.9 14.5 12.3 24.2 20.6 14.8 8.5 5.1

Digital Singles 56.6 43.4 15.1 12.8 26.5 19.1 13.8 8.0 4.7

Digital Albums 61.6 38.4 14.3 12.0 21.1 22.9 16.1 8.6 5.0

Physical Music 51.7 48.3 8.5 6.8 15.1 18.1 22.3 16.9 12.3

Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Total Music 63.4 36.6 12.1 9.5 17.4 20.0 19.5 13.4 8.1

Total Albums 63.2 36.8 10.3 7.6 15.9 19.9 21.9 15.3 9.1

Digital Music 68.2 31.8 18.0 14.0 22.6 20.7 13.3 6.6 4.7

Digital Singles 64.4 35.6 20.9 18.6 24.8 20.5 7.6 4.3 3.3

Digital Albums 70.9 29.1 15.9 10.8 21.1 20.9 17.3 8.2 5.7

Physical Music 60.1 39.9 8.0 6.3 13.9 19.4 23.7 18.1 10.5

Breakdown of Music Purchasing Groups 2014 (% Buyers Across)

Breakdown of Music Purchasing Spend 2014 (% Expenditure Across)



The data on this page highlights a couple of key insights about music purchasing. The first is that physical music (i.e. CD and LP) buyers are demographically very different from those buying digital. Women are more inclined to buy physical products than other forms, and the profile is much more skewed towards older age groups – for physical music the

key purchasers in both head count and spend terms are the 45 to 54 year olds, whereas for digital music it is the 25 to 34 year olds.

The other main point is that the percentage of spend attributable to men significantly exceeds their buyer share. While women make up over 40% in all but one of the format purchasing groups presented

here their spend share is below 40% in every one, and below 30% in the digital albums market. It is also apparent that younger buyers ‘outspend’ in terms of digital music – for example 13 to 19 year olds comprise 15.1% of digital singles purchasers but their spend is over a fifth (20.9%) of the format total.

Demographics: Music Buyerswomen comprise almost half of physical music purchasers


Men Women 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Survey Population 49.5 50.5 9.1 8.7 16.9 16.4 17.7 14.3 16.9

Any Music Spend (inc. paid streaming) 52.9 47.1 11.0 9.8 19.3 18.4 18.6 12.9 10.0

Physical Only 49.2 50.8 6.2 5.0 13.0 17.3 23.8 18.9 15.7

Digital Only 51.6 48.4 18.4 15.1 25.7 17.4 11.8 6.4 5.2

Both Physical and Digital 61.1 38.9 11.0 8.1 22.3 23.7 19.1 10.6 5.2

Only Paid Streaming 58.4 41.6 16.9 18.3 28.2 15.2 13.0 4.6 3.8

Paid Streaming and Physical Only 70.3 29.7 11.8 12.0 24.2 19.6 15.8 10.9 5.8

Paid Streaming and Digital Only 79.9 20.1 14.2 13.1 31.3 20.1 9.7 8.7 2.9

Paid Streaming and Physical and Digital 75.8 24.2 9.2 18.2 27.8 22.4 9.2 7.8 5.5

Any Streaming 59.2 40.8 15.9 13.1 23.6 18.1 14.3 8.7 6.2

Free Streaming (inc. YouTube) 58.8 41.2 15.9 14.0 22.5 17.8 14.4 9.1 6.3

Free Audio Streaming Only (excl. YouTube) 59.4 40.6 16.5 12.9 23.4 17.7 14.1 9.0 6.5

Paid Streaming 63.6 36.4 13.8 17.3 28.1 17.2 13.2 6.3 4.1

Consumer Breakdown by Activity Group – 2014 (% Across)


Over one in four paid streamers is aged between 25 and 34

Almost two thirds of paid streamers are men

1 in 4

Demographics: Music Buyers/Streamers25 to 34 year olds comprise largest paid streamer group

The table on this page offers a more detailed look at physical and digital buyer demographics, along with those who pay to stream. While again highlighting the very different profile of physical buyers – women make up the majority of those who buy only CDs and well over half (58.4%) of this purchasing group are aged over 45 – it also shows that women take their largest proportion of buyers in ‘single channel’ groups. For example, while women constitute 48.4% of buyers who only purchase music digitally and

41.6% of consumers who only pay to stream (and buy no music), they represent only 20.1% of those who both pay to stream and buy digitally, and under 40% of those who buy music both physically and digitally.

The table also shows that paying to stream is proportionally a more male activity than accessing music for free. The age profile of subscribers is also more concentrated towards consumers aged 20 to 34.


This section of the book looks at information concerning the purchasing and streaming of music, and how the two methods of music consumption overlap. Drawn from Kantar Worldpanel’s consumer panel, based on the behavioural records of

15,000 demographically representative British individuals, the data shows that 37.9% of the population aged over 13 bought some music – either in album or single form – in 2014. While this was down on 2013’s 42.9% there is likely to be some

transition towards streaming services, which are increasing in popularity. When those who are subscribing to (i.e. paying for) one of these, the percentage of the population paying to consume music rises to 41.9%.

The average spend for each of

these consumers is increasing across the board, although this may be partly attributable to rising prices of albums and singles (see page 33).

Percentage of Population Paying to Consume Music

£45

£40

£35

£30

£25

£20

£15

£10

£5

0

£41.

34

£43.

60

£38.

29

£39.

52

£37.

91

£39.

49

£19.

28

£20.

04

£33.

00

£34.

98

£32.

06

£34.

48

£32.

89

£34.

44

£34.

35

£36.

27

£18.

19

£18

.78

Purchased Music &/or Paid

Streamer*

Purchased Music

Total Albums

Singles Digital Albums

Digital Music

Physical Music

Artist Albums

Compilation Albums

Purchased Music &/or Paid

Streamer

Purchased Music

Total Albums

Singles Digital Albums

Digital Music

Physical Music

Artist Albums

Compilation Albums

45%

40%

35%

30%

25%

20%

15%

10%

5%

0

45.2

%

41.9

%

42.9

%

37.9

%

35.6

%

31.6

%

15.2

%

12.6

%

12.4

%

10.5

%

20.9

%

17.5

%

29.0

%

25.7

%

31.2

%

27.6

%

15.1

%

13.1

%

2013 2014

2013 2014


Average Spend Per Buyer (£)

Source: Kantar Worldpanel *On music to own and/or streaming

Penetration and Average Spendnumber of music purchasers falls but average spend rises


2013 2014

Any Streaming 37.8 41.9

Free Streaming (inc. YouTube) 35.9 39.9

Free Audio Streaming Only (excl. YouTube) 21.9 23.6


2013 2014

Any Streaming 52.2 44.0

Free Streaming (inc. YouTube) 52.8 44.1

Free Audio Streaming Only (excl. YouTube) 54.6 45.1


2013 2014

Any Streaming £43.30 £44.16

Free Streaming (inc. YouTube) £43.53 £44.45

Free Audio Streaming Only (excl. YouTube) £45.33 £46.38

Paid Streaming £46.90 £41.80

Percentage of Population Streaming Music (at any time of year)(%)

Percentage of People From Each Activity Group Purchasing Music on CD or Download (%)

Average Spend Per Buyer*



Source: Kantar Worldpanel *On recorded music to own

According to Kantar, more than four in 10 people aged over 13 streamed music in 2014. This includes YouTube, along with audio streaming services such as Spotify, Deezer and Rdio. The penetration rates presented here include anyone who has reported streaming music at any of the points across the year on which Kantar measure such activities – they do not have to have done so for the full 12 month period.

The penetration rate for paid streamers (i.e. those who subscribed to the premium tier of an audio streaming service) may seem quite high at 6.4%, but this will include people who stopped using these services during the course of the year, as well as those who started.

Those who stream music are, as might be expected, seemingly more engaged consumers – the percentage of streamers making a music purchase is higher than that experienced across the wider population.

41.9%of the population

stream music

44%buy music

to own

Of those

£44.16Their average

spend is

Penetration and Average Spend: Streamers streaming penetration tops 40% in 2014

a year


Percentage of Population Purchasing Music and/or Paying to Stream (%)

Percentage of Population Paying to Stream (%)

2013 2014Total 45.2 41.9

Female 43.0 39.4

Male 48.5 45.3

13 – 19 51.7 47.8

20 – 24 47.9 45.4

25 – 34 50.9 47.3

35 – 44 50.6 46.5

45 – 54 45.6 43.9

55 – 64 40.0 38.3

65 – 79 30.1 26.1

2013 2014Total 4.9 6.4

Female 3.5 4.6

Male 6.2 8.2

13 – 19 6.4 9.8

20 – 24 8.8 11.0

25 – 34 7.3 11.3

35 – 44 6.7 7.0

45 – 54 4.0 4.4

55 – 64 2.3 2.9

65 – 79 1.0 1.6


The tables on this page set out the contrasting fortunes of the purchasing and streaming markets. While a sizeable number of UK adults are purchasing or paying to stream music – over 39% of women and 45% of men – overall numbers are down, with the penetration rates decreasing across all age groups, by an average of 3.1%. The sharpest fall came in the 35 – 44 group, followed by those aged 65 and over.

Conversely, take-up of paid streaming is increasing across all demographic indices. Currently a much greater percentage of men (8.2%) have subscribed compared to women (4.6%) and although the penetration rate increases are slower among older consumers over 11% of people aged between 20 and 34 joined the paid tier of a streaming service for at least part of 2014.

Paying to stream is most popular amongst the

under

8.2%of men used a subscription streaming service in 2014

42%of the UK population paid for music in 2014

Penetration: Gender and Age paid streaming penetration rises in every age group

35s


Average Spend: Gender and Age per-buyer spend increases in 2014

Average Spend Per Buyer* – All Music

Average Spend Per Buyer* – Digital Music

Total

Total

Female

Female

Male

Male

13 – 19

13 – 19

20 – 24

20 – 24

25 – 34

25 – 34

45 – 54

45 – 54

35 – 44

35 – 44

55 – 64

55 – 64

65 – 79

65 – 79

2013

2013

2014

2014

£50

£40

£30

£20

£10

£0

£50

£40

£30

£20

£10

£0

£38.

29£3

3.00

£29.

72£2

7.28

£30.

28£2

6.31

£45.

27£3

6.77

£47.

05£4

0.80

£42.

65£3

7.59

£45.

19£4

3.70

£41.

36£3

9.02

£41.

19£3

7.43

£42.

28£3

6.78

£40.

15£2

9.05

£42.

93£3

5.28

£39.

92£3

3.38

£39.

14£2

7.35

£40.

26£3

1.31

£36.

60£2

5.58

£38.

08£2

7.34

£26.

78£2

6.12

£30.

97£3

0.85

£39.

52£3

4.98

While music buyer numbers are decreasing, those who have remained in the market have increased their expenditure slightly between 2013 and 2014. This may in part be due to rising prices, although the rise in spend per buyer of digital music (+6%) is higher than that of the average cost of a digital album (+2%).

These per-buyer increases are not uniform, however – while both men and women increased their spend on music overall, female expenditure on digital music fell. There were also decreases in the buyer groups aged between 20 and 34, for both overall and digital music, although every other age group increased its average. Men’s spend still far exceeds women’s in each of the markets presented, with the gap widening for digital.

Source: Kantar Worldpanel *On recorded music to own (physical and downloads)

Source: Kantar Worldpanel *on recorded music to own

£39.52The average spend of a music buyer in 2014


Percentage of Population Purchasing Music and/or Paying to Stream (%)

Free/Paid Tier Streamers (% Split)

The main graphic on this page looks at how music consumers who either bought music or paid to subscribe to a streaming service split out in both 2013 and 2014. The vast majority only bought music – this group amounted to over 35% of the population in 2014 – but the percentage of people who are subscribing to a streaming service but not buying music is increasing (from 2.3% in 2013 to 4.0% in 2014). The share of the population doing

both fell slightly, to 2.4%. These are relatively early days for the streaming market, but it remains to be seen whether this is the result of an ongoing substitutional effect.

Of all the respondents on Kantar’s survey who stated that they had used an audio streaming service, almost eight out of 10 (79.3%) stated that they were users of the free tier rather than the paid.

Data from January 2015 showed that

3.6%reported being currently subscribed – around

2.2mindividuals.

2013 2014

Bought Music Only 40.3 35.5

Paid Streaming Only 2.3 4.0

Both 2.6 2.4

2013 2014

Paid Streamers 21.0 20.7

Free Streamers 79.0 79.3


Base: all free and paid tier

streamers, audio services

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0

2013 2014

Penetration – Music Purchasers/Paid Streamers (%)

2.6%

40.3%

2.3% 2.4%

35.5%

4.0%

Both

Paid streaming only

Bought music only

TOTAL45.2

TOTAL41.9


6.4%of respondents reported having paid to use a streaming service in 2014. This includes those who tried it and stopped.


Penetration and Tier Breakdown: Streamers paid streamer numbers on the increase

Women Men 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79 Total Market 36.6 63.4 12.1 9.5 17.4 20.0 19.5 13.4 8.1

Pop 44.0 56.0 12.9 8.6 18.4 22.5 19.3 11.5 6.8

Rock 32.6 67.4 14.4 9.4 17.4 20.2 21.4 11.1 6.1

Urban 39.3 60.7 18.1 18.1 27.1 18.2 9.6 7.0 1.9

MOR/Easy 44.0 56.0 4.7 3.9 9.2 16.2 22.5 24.2 19.2

Jazz/Blues 23.3 76.7 4.0 3.6 11.3 10.2 18.4 35.9 16.5

Dance 29.5 70.5 12.9 17.9 26.3 23.0 12.5 5.1 2.2

Classical 33.0 67.0 3.9 4.0 4.0 6.5 13.6 40.1 27.8

Country 36.0 64.0 1.7 6.8 14.3 19.8 17.4 21.7 18.4

Women Men 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Pop 38.8 28.6 34.3 29.5 34.0 36.4 32.0 27.7 27.1

Rock 31.1 37.1 41.4 34.7 34.9 35.3 38.3 28.9 26.2

Urban 7.1 6.3 9.8 12.6 10.2 6.0 3.2 3.4 1.5

MOR/Easy 6.3 4.7 2.1 2.2 2.8 4.3 6.1 9.5 12.4

Jazz/Blues 0.8 1.5 0.4 0.5 0.8 0.6 1.1 3.3 2.5

Dance 5.8 8.0 7.7 13.6 10.8 8.3 4.6 2.7 1.9

Classical 2.7 3.1 0.9 1.3 0.7 1.0 2.1 8.8 10.1

Country 1.8 1.8 0.3 1.3 1.5 1.8 1.6 2.9 4.1

All Other 5.7 9.0 3.1 4.4 4.3 6.4 11.0 12.7 14.1

Spend Composition by Musical Genre 2014 (% Across)

Spend by Musical Genre (% Down)

Source: Kantar Worldpanel. Base: total music expenditure

Source: Kantar Worldpanel. Base: total music expenditure

The top table on this page looks at how spend on each of the main genres breaks down in terms of gender and age in 2014. The figures highlighted demonstrate where above average shares are occurring – so, for instance, while women account for 36.6% of all spend on music they claim greater percentages in the Pop, Urban and MOR/Easy markets. Men are responsible for over three quarters of spend in the Jazz/Blues market, their lowest shares occurring in Pop and MOR/Easy (56.0%). As might be expected, Urban has the youngest spend profile (63.3% coming from buyers aged under 35), while Classical has the oldest (67.9% from buyers aged over 55).

The second table shows how each demographic group breaks down across genres. Pop is the most popular genre with women, accounting for 38.8% of their total music spend. For men, Rock attracts the greatest share of expenditure (37.1%). It also claims over a third of spend in every age group except for the two oldest.

29% 39%Women – Share of Spend Accounted for by Pop Titles

Men – Share of Spend Accounted for by Pop Titles


Age and Gender Profiles by Genremen account for two thirds of rock spend

13 – 19 20 – 24 25 – 34 45 – 5435 – 44 55 – 64 65 – 79

Total Music All Albums Digital Singles Digital Albums Physical Albums Artist Albums Compilation Albums

13 – 19 17.2 14.2 32.7 26.5 10.5 16.9 5.8

20 – 24 7.2 5.8 14.3 9.6 4.7 6.2 4.7

25 – 34 19.1 18.3 23.2 23.5 16.7 18.0 19.0

35 – 44 17.0 17.3 15.3 17.9 17.1 16.0 21.3

45 – 54 17.7 19.7 7.7 9.5 22.7 19.0 21.8

55 – 64 13.4 15.1 4.8 8.6 17.1 14.8 16.3

65 – 79 8.4 9.6 2.1 4.5 11.2 9.1 11.1

Total Music All Albums Digital Singles Digital Albums Physical Albums Artist Albums Compilation Albums13 – 19 9.1 8.1 14.4 11.5 6.4 7.9 9.0

20 – 24 10.8 8.7 20.9 11.4 7.4 8.5 9.7

25 – 34 16.5 14.6 25.7 20.1 11.9 14.8 13.7

35 – 44 21.7 21.4 23.3 22.1 21.0 21.4 21.4

45 – 54 20.5 23.2 7.6 20.6 24.4 23.6 21.4

55 – 64 13.4 15.3 4.1 8.1 18.8 15.2 16.0

65 – 79 8.0 8.8 4.0 6.2 10.0 8.8 8.8

Women – Music Spend by Age and Format (% Down)

Men – Music Spend by Age and Format (% Down)


The tables on this page look in detail at the way spend breaks out for different formats across the various age groups, with men and women’s expenditure viewed separately.

The most immediately noticeable difference between the male and female spend profiles is that buyers under 20 are responsible for much greater shares of women’s spend across the various formats.

In the case of digital singles teenagers account for almost a third (32.7%) of what women spend, compared to only 14.4% for men, where this buyer group is only the fourth biggest spending. While for some formats (such as physical albums) the highest spending buyer group is the same (in this case the 45 to 54 year olds), for others the ranking is very different.

These differences across the various format groups have the eventual outcome of the 25 to 34 year olds being the highest spenders overall for women, whereas for men it is the 35 to 44 year olds. Teenagers rank third in terms of women’s total expenditure but are the second-lowest spenders among men.


25%

20%

15%

10%

5%

0

17.2

%

7.2%

10.8

%

19.1

%

16.5

%

17.0

%

21.7

%

17.7

%

13.4

%

13.4

%

20.5

%

8.4%

8.0%

9.1%

Total Music Spend by Gender (% Across)

Men Women



Music Spend: Gender Profiles younger age groups account for a higher proportion of women's spend

Total Music All Albums Digital Singles Digital Albums Physical Albums Artist Albums Compilation Albums

13 – 19 17.2 14.2 32.7 26.5 10.5 16.9 5.8

20 – 24 7.2 5.8 14.3 9.6 4.7 6.2 4.7

25 – 34 19.1 18.3 23.2 23.5 16.7 18.0 19.0

35 – 44 17.0 17.3 15.3 17.9 17.1 16.0 21.3

45 – 54 17.7 19.7 7.7 9.5 22.7 19.0 21.8

55 – 64 13.4 15.1 4.8 8.6 17.1 14.8 16.3

65 – 79 8.4 9.6 2.1 4.5 11.2 9.1 11.1

Men aged over 45 accounted for 26.5% of all expenditure on music to own in 2014, up slightly from 25.2% in 2013. Their share was slightly ahead of the 24.3% attributable to men aged 25 to 44.

Within this broader breakdown, the key group remains men aged 35 to 44 – in 2013 they accounted for the largest overall share (13.5%) and that rose in 2014, to 13.8%. Men aged 45 to 54 accounted for 12.6% of music spend in 2013, and their share also rose in 2014, to 13.0%.

Music buyers aged 45 and over cumulatively were the biggest spenders among women, and were responsible for 14.5% of the total. But splitting out the age groups more finely, buyers aged between 25 and 34 were proportionately the biggest female spenders, claiming 7.0% of the overall total (although this was down from 7.9% in 2013).

Again looking at the more detailed age breaks, while there was some difference in the shares for the youngest (aged 13 to 19) and oldest (65 and over) women (6.3% and 3.1% respectively), for men it was less marked. Men aged over 65 were responsible for 5.0% of the spend total, with teenagers claiming 5.8%.

Music Spend Breakdown 2014

26.5%Men aged 45+

24.3%Men aged 25 – 44

12.6%Men aged 13 – 24

14.5%Women aged 45+

13.2%Women aged 25 – 44

8.9%Women aged 13 – 24


Base: total music expenditure


Music Spend: Gender Profiles men over 45 cumulatively take biggest share of overall spend

Music Spend Breakdown – Gender and Age (%)

Women

Men

13 – 19

20 – 24

25 – 34

35 – 44

45 – 54

55 – 64

65 – 79

100

80

60

40

20

0

14.5

13.0

2.0 ▼

54.1

16.411.1

52.9

2.1 ▼

18.1

15.8

28.9

21.8

2.1 ▼

39.9

7.4 8.7

38.1

2.5 ▼

20.9

29.8

20.8

21.2

2.8 ▼

43.6

11.6 15.2

63.7

1.4 ▼

14.6

12.66.6

13.1

1.4 ▼

63.7

15.2 17.2

67.3

1.0 ▼

10.3

4.3 4.9

9.6

1.6 ▼

67.4

16.4


The main table on this page looks at the extent to which expenditure in different market sectors is concentrated towards the most active buyers. For instance, the top spending 10% of buyers in the overall music market accounted for 46.8% of the total spend in 2014, but for singles the top 10% accounted for a larger portion (54.2%). These heaviest buyers continue to be of more importance to digital music (where

they represented 55.1% of spend) than physical (41.0%).

The chart looks at the composition of spend on a gender and age group basis. Physical albums accounted for over 70% of women’s expenditure, compared with 64% of men’s, and more than 50% among all consumers aged 25 and over.

Total Music Physical Music Digital Music Albums SinglesTop 10% (heaviest buyers) 46.8 41.0 55.1 45.3 54.2

11 – 20% 18.3 19.0 17.1 18.0 19.5

21 – 30% 11.0 11.8 9.7 11.3 9.1

31 – 40% 7.5 8.9 5.4 8.0 5.0

41 – 50% 5.5 6.7 3.8 6.0 3.0

51 – 60% 4.0 4.8 2.9 4.3 2.8

61 – 70% 3.0 3.3 2.5 3.2 2.1

71 – 80% 2.0 2.4 1.6 2.2 1.2

81 – 90% 1.3 1.4 1.0 1.2 1.5

91 – 100% (lightest buyers) 0.6 0.5 0.7 0.4 1.7

Music Spend by Buyer Decile 2014 (% Down)

70%of women's spend accounted for by physical formats


Physical Compilation

Albums

Physical Artist

Albums

Digital Compilation

Albums

Digital Tracks

Digital Artist

Albums


Decile Analysis and Spend Composition: All Music Buyers heaviest 10% of buyers represent over 55% of digital music spend



While 43.3% of those people new to paid streaming services bought no music in 2013, the decile data on this page splits out those who did make at least one purchase. A common worry is that paid subscriptions draw only the ‘heaviest’ spenders on music to own. Although the sample is small, the figures from Kantar suggest that there is a skew towards heavier buyers, but the spread is probably more even than expected.

The second table looks at the demographic profiles of those who were paying for a premium streaming service in 2014 but stopped (leavers) and those who started subscribing for the first time (joiners). According to this data there appears to be a slight bias among the leavers towards women, while comparison of the two age profiles suggests that there is some work to be done in retaining the key 25 to 44 year old consumers.

Buyer % 2013 Spend DecileDecile 1 & 2 (Top 20%) 25.9

Decile 3 & 4 22.5

Decile 5 & 6 16.9

Decile 7 & 8 18.5

Decile 9 & 10 (Bottom 20%) 16.2

Leavers Joiners

Women 37.1 36.5

Men 62.9 63.5

13 – 19 17.9 17.5

20 – 24 17.0 17.9

25 – 34 25.0 30.8

35 – 44 21.3 14.7

45 – 54 11.3 9.6

55 – 64 4.6 5.2

65+ 2.8 4.2

New Paid Streamers 2014 – Music Spend Decile Origin (% Buyers Down)

Profile of ‘Joiners’ and ‘Leavers’ 2014 (% Buyers Down)

New Paid Streamers 2014 – Music Spend Decile Origin (% Buyers)

26

24

22

20

18

16

14

12

10

8

4

2

0

16.9

18.5

16.2

Deciles

1/2 3/4 5/6 7/8 9/10

25.9

22.5


Streamers: Spend Decile Origin and Joiners/Leavers men account for almost two thirds of new paid streamers

Crossover of Music Consumers 2014 (%)

Crossover of Consumer Groups (% Down)

2013 2014

Physical Only 45.4 47.5

Digital Only 22.8 22.6

Physical and Digital 19.3 16.0

Only Paid Streaming 5.3 8.2

Paid Streaming and Physical 2.0 1.9

Paid Streaming and Digital 2.9 2.6

Paid Streaming and Physical and Digital 2.3 1.3

Importance of Crossover Music Buyers 2014 (% Spend Down)

Total Music Total Albums Physical Albums Total Digital Music Digital Albums Digital SinglesPhysical Music Only 40.1 47.9 69.0 - - -

Digital Music Only 22.1 13.9 - 52.7 45.2 64.4

Both 37.8 38.3 31.0 47.3 54.8 35.6



The majority of music buyers in 2014 were still purchasing music only on physical formats, according to Kantar’s survey data, and the share for this group actually increased slightly. The great success of the albums by Ed Sheeran and Sam Smith may have tempted those who purchase music only occasionally, and these are more likely to be physical buyers.

When paid streamers are factored in, ‘physical only’ consumers still make up a large proportion (47.5%) of the total, but there is some – relatively limited – crossover with paid streaming. While the share accounted for by those who only subscribe is increasing, the crossover with purchasing is falling.

Isolating different formats shows that consumer groups loyal to either physical or digital are very important to those markets. Buyers who only purchase physical formats account for over two thirds of spend on CDs, and ‘digital only’ buyers are responsible for a similar proportion of spend on singles.

There is less crossover among physical buyers:

69%of spend on physical albums comes from ‘physical only’ purchasers

Digital 22.6

Physical 47.5

1.9

2.6

16.01.3

Paid Streaming

8.2


Consumer Crossover‘physical only’ buyers remain in the majority

Music Spend by Retailer Type 2014 (%)

Source for both tables:

Kantar Worldpanel

Base: total music expenditure

Total Women Men 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Music Specialists 17.5 18.7 16.9 20.7 18.1 11.0 17.7 18.0 23.9 13.6

Home Delivery 22.1 19.5 23.7 7.8 10.9 17.6 21.8 29.4 30.3 36.1

Supermarkets 17.8 24.6 14.0 9.4 9.9 17.3 17.5 22.4 22.9 22.7

Digital 40.9 35.6 44.1 60.8 60.5 53.2 42.5 28.1 20.4 23.9

Chains/Multiples 1.3 1.5 1.2 1.3 0.5 0.7 0.3 2.0 2.1 3.1

Other 0.2 0.2 0.1 - 0.1 0.2 0.1 - 0.4 0.6

Spend at Retailer by Gender and Age Group 2014 (% Down)

The data on this page looks at the demographic profiles of music buyers at the various retail channels, as well as how the retail spend of each gender and age group is apportioned.

The supermarkets were the only channel at which women were responsible for the majority of spend in 2014 (50.4%). Although digital channels were where the biggest share for both women and men took place, almost a quarter of female music spend occurred at supermarkets, compared with just 14% of men’s.

Digital represents over half of spend for every age group under 35, while home delivery services such as Amazon make up over a third of expenditure by the oldest music consumers. The biggest spenders at digital services are the 25 to 34 year olds, whereas for home delivery and supermarkets it is the 45 to 54 year olds.

Women Men 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Total Market 36.6 63.4 12.1 9.5 17.4 20.0 19.5 13.4 8.1

Music Specialists 39.1 60.9 14.4 9.9 11.0 20.2 20.0 18.2 6.3

Home Delivery 32.2 67.8 4.3 4.7 13.9 19.8 25.9 18.3 13.2

Supermarkets 50.4 49.6 6.4 5.2 17.0 19.6 24.4 17.1 10.3

Digital 31.8 68.2 18.0 14.0 22.6 20.7 13.3 6.6 4.7

Chains/Multiples 43.3 56.7 12.2 3.7 8.9 4.2 29.9 21.9 19.2

Retailer Spend – Consumer Group Profile 2014 (% expenditure, across)

Music

Specialists

40%

30%

20%

10%

0

Home

Delivery

Supermarkets Digital Chains/

Multiples

Other

17.5

%

22.1

%

17.8

%

40.9

%

1.3%

0.2%

Retailer Consumer Profiles women account for majority of spend at supermarkets


Amazon and iTunes have high levels of consumer loyalty

Approaching half of their customers only buy music from them

46.9% 47.1%

2013 2014

Internet (Home Delivery & Digital) 70.7 75.6

Amazon 43.8 46.9

iTunes 45.2 47.1

Play.com 16.4 14.9

Tesco Online 16.8 18.5

Other Online 19.2 20.9


HMV 28.6 31.6

Other Music Specialists 15.4 19.5


Sainsbury's 26.8 30.7

Asda 30.4 33.9

Tesco 32.4 36.3

Morrisons 29.0 36.6


Retailer Loyalty* (% Buyers)On this page the concept of retailer loyalty is measured as the percentage of each retailer’s customers that buy music only from them. So, for example, in 2014 over three quarters of those who made some kind of music purchase on the internet (either via home delivery or download) used that channel exclusively for their entire music purchasing. This group of retailers attracted the greatest amount of loyalty, with less than half of those purchasing music at a supermarket using those outlets to do all their music shopping for the year. This drops yet further for the specialists and chains. Of all the individual retailers listed, iTunes had the highest level of customer loyalty (47.1%), narrowly ahead of Amazon (46.9%).

The second set of data shows that getting on for two thirds of music buyers used only one retailer to do all their music shopping, with just under a quarter using two.

*Buyers for each retail channel who only use that channel


Base: all music

One 61.1

Two 24.1

Three 9.4

Four 3.0

Five + 2.3

Number of Retailers Used Per Buyer 2014 (% Buyers, Down)


Base: all music

Amazon iTunes


Retailer Loyalty internet retailers attract highest level of customer loyalty

Impulse purchasing is much lower for

home delivery and digital retail

channels

Women Men 13 – 19 20 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65 – 79

Total Market 36.6 63.4 12.1 9.5 17.4 20.0 19.5 13.4 8.1

Planned 37.6 62.4 11.7 9.1 16.4 21.3 20.7 12.7 8.2

Impulse 34.8 65.2 12.9 10.2 19.5 17.5 17.2 14.8 7.9

Impulse Planned

Total Market 40.3 59.7




Digital 35.6 64.4


Impulse Planned

Total Music Purchase 38.4 61.6

Total Albums 40.3 59.7

Artist Albums 39.2 60.8

Compilation Albums 45.1 54.9

Physical Music 42.4 57.6

Physical Artist Albums 41.2 58.8

Physical Compilation Albums 46.9 53.1

Digital Music 37.0 63.0

Digital Singles 37.3 62.7

Digital Albums 35.6 64.4

Digital Artist Albums 35.4 64.6

Digital Compilation Albums 37.1 62.9

Impulse and Planned Purchasing 2014 (% Spend Across)

Impulse and Planned Purchasing by Retail Channel (% Volume, Across)

Impulse Purchasing by Category 2014 (% Volume, Across)

Percentage of Albums Bought on Impulse (% Volume)

Base: all albums


The percentage of albums bought on impulse fell slightly in 2014, to just over four in 10 (40.3%). Over half of purchases taking place at specialists (such as HMV) and supermarkets were recorded by Kantar’s survey respondents as being impulse. As might be expected, the great majority of purchases made at home delivery and digital channels were planned.Women take a greater share of planned expenditure than they do for impulse, with impulse buys making for a slightly higher share of spend than the market average for the three youngest groups and the 55 to 64 year olds.

Compilation albums on CD remain key impulse buys – 46.9% of them according to Kantar, the highest share among any of the formats listed out. Digital artist purchases are the most planned – almost two thirds (64.6%).

2013

41.92014

40.3


Impulse Purchasing over 40% of albums are bought on impulse

Worldwide revenues from digital music services matched those from physical format sales for the first time in 2014, according to data collated by IFPI.

Digital revenues rose by 6.9% to US$6.9 billion, representing 46% of all global music sales. The industry’s total revenues in 2014 were largely unchanged, falling by just 0.4%. Four of the top 10 global music markets reported an increase in trade income, including the biggest, the US. Germany remained ahead of the UK in the global rankings, reporting a revenue rise of 1.9%. Japan, Germany, France and Italy all still saw the majority of their income derived from physical format sales.

The 2014 figures show an industry in continuing transition. Another steep increase in subscription revenues (+39.0%) offset declining download sales (-8.0%) to drive overall digital revenues, while the number of paying users of subscription services rose 46.4% to an estimated 41 million. Subscription is now at the heart of the music industry’s portfolio of businesses, representing 23% of the digital market and generating US$1.6 billion in trade revenues.

Rank Country US$ (m) Local currency (m) % change from 2013

1 USA 4,898.3 4,898.3 +2.1%

2 Japan 2,627.9 278,211.1 -5.5%

3 Germany 1,404.8 1,053.6 +1.9%

4 UK 1,334.6 814.1 -2.8%

5 France 842.8 632.1 -3.4%

6 Australia 376.1 417.5 -6.8%

7 Canada 342.5 376.8 -11.3%

8 South Korea 265.8 280,651.9 +19.2%

9 Brazil 246.5 581.6 +2.0%

10 Italy 235.2 176.4 -4.1%

Rank Country Physical Digital Performance Rights Synchronisation

1 USA 26% 71% 0%* 4%

2 Japan 78% 17% 3% 1%

3 Germany 70% 22% 7% 1%

4 UK 41% 45% 12% 2%

5 France 57% 27% 13% 3%

6 Australia 32% 56% 9% 2%

7 Canada 38% 53% 6% 2%

8 South Korea 38% 58% 3% 1%

9 Brazil 41% 37% 21% 1%

10 Italy 51% 33% 13% 3%

Top 10 International Markets 2014 – Market Value (Trade)

Top 10 International Markets 2014 – Market Split (Trade Value)

Source: IFPI

*Revenues collected by

SoundExchange are now

reported under Digital.

2012 15,645

2013 15,029

2014 14,966

% change 13/14 -0.4%

Physical 46%

Digital 46%

Performance Rights 6%

Synchronisation 2%

Worldwide Recorded Music Trade Revenues (US$ m)

Breakdown of World Sales 2014

Source: IFPI


World Salesglobal revenues down 0.4% in 2014

Top 10 Global Recording Artists 2014

Taylor Swift (USA)

One Direction (UK)

Ed Sheeran (UK)

Coldplay (UK)

AC/DC (UK, AUS)

Michael Jackson (USA)

Pink Floyd (UK)

Sam Smith (UK)

Katy Perry (USA)

Beyoncé (USA)

1

2

3

4

5

10

6

7

8

9

1

2

3

4

5

Best Selling Albums by UK Artists Worldwide 2014

Pink Floyd The Endless River Overall position – 9

One Direction Four Overall position – 6

Sam Smith In The Lonely Hour Overall position – 5

Coldplay Ghost Stories Overall position – 4

Ed Sheeran X Overall position – 3

One Direction

British Artists' Chart Achievements 2014

Year-end Canada Netherlands Australia Italy USA

Top 10 5 3 3 3 2

Top 100 15 21 19 18 10

Top 500 64 86 89 108 61

Top 750 95 128 131 153 80

Top 1,000 125 - 162 198 104

Year-end Germany Sweden Spain France Japan

Top 10 2 1 0 0 0

Top 100 8 17 10 6 3

Top 500 64 65 80 65 27

Top 750 98 104 116 109 37

Top 1,000 133 136 171 146 51

Source: BPI based on Nielsen/Billboard,

Media Control GfK, Oricon and ARIA data

Using a measure that takes into account streaming as well as physical and digital sales, the IFPI announced in February that British artists took five of the top 10 places in the Global Recording Artist top 10 for 2014. The tally increases to six if AC/DC are included: in BPI’s own international analysis they are classed as dual nationality. One Direction, in second place, were the British act with the largest accumulated total across their catalogue, and Sam Smith qualified based just on material associated with his In The Lonely Hour debut.

Taylor Swift also topped the IFPI’s chart (with 1989) for best selling album worldwide, making her the first non-British artist to achieve the accolade since Eminem in 2010. Eight UK acts made the top 40, compared with 10 in 2013.

The table sets out the achievements of British artists in terms of placing in year-end charts in various territories. In Canada, five (Sam Smith, Ed Sheeran, Coldplay, One Direction and Pink Floyd) made the year-end top 10 there, while in Italy almost a fifth of the top 1,000 best selling albums of the year were by UK musicians.

Source: IFPI

Source: IFPI


UK Music in the International Marketfive of top 10 global best selling artists are british

Charts reproduced

with permission

from Nielsen/

Billboard

All four albums by One Direction have debuted at




Arctic Monkeys AM Overall position – 37

Pink Floyd The Endless River Overall position – 10

Top Five Albums by British Artists in Canada 2014

Top Five Albums by British Artists in USA 2014

Sam SmithIn The Lonely Hour Overall position – 3

Sam SmithIn The Lonely Hour Overall position – 3




No.1 in the US

Sam Smith was the only artist in 2014 to sell

1m albums in both the UK and USA

1

2

3

4

5

1

2

3

4

5


UK Artists’ Share of Album Sales in USA and Canada (%)

Source: BPI based on Nielsen/

Billboard data

USA Canada

2008 2009 2010 2011 2012 2013 2014

18

16

14

12

10

8

6

4

2

0

10.

0%

14.

9%

9.6

%

13.

4%

9.8

%

13.

4%

11.

7%

16.

2%

13.

6%

17.

3%

10.

4%

14.

2%

12.

2%

15.

3%

Although it fell just short of achieving the number one spot on the weekly Billboard 200, Sam Smith’s debut In The Lonely Hour was the only album to achieve 1m sales in both the US and the UK in 2014. Come the end of the year it had been outsold only by Taylor Swift’s 1989 and the Frozen soundtrack and it achieved the same position in the Canadian year-end chart, where three of the top five albums were by British artists.

Ed Sheeran’s X was another big success in North America, selling well over 200,000 copies in its week of release – the largest first week tally for a UK male since Rod Stewart in 2004. When In The Lonely Hour charted directly behind X it marked the first one-two on the Billboard 200 for British solo artists since Eric Clapton’s Unplugged and Sting’s Ten Summoner’s Tales in March 1993.

A week-of-release number one for One Direction made it four straight debuts at the top for the band, and there was another chart topper for Coldplay, with Ghost Stories in May. Other top 10 album successes included titles by Pink Floyd, Alt-J, Little Mix, Calvin Harris, Judas Priest, Eric Clapton and Robert Plant, while Charli XCX (with Iggy Azalea) enjoyed a number one single with Fancy.

UK Music in North Americabritish artists’ share of sales on the up in both us and canada

20%

19%

22%

4%14%

12%

14%

UK Artists’ Share of Album Sales – Selected Countries 2014

12%

Ed Sheeran’s second album X has proven to be a truly global hit, reaching number one in the Netherlands, Denmark, Australia, Norway, New Zealand and Sweden amongst other territories. X was the best selling album of 2014 in Australia and the country’s fondness for UK music was reflected in the fact that again over one in every five (22.4%) artist albums sold there was by a British artist, with Coldplay and Sam Smith also featuring in the year-end top 10. UK artists enjoyed a collective share of just under 20% in Italy (up from 16.8%), where Pink Floyd, One Direction and Coldplay all featured in the annual top 10, and share was also up in Sweden, where albums by Calvin Harris, James Blunt, Ellie Goulding and Arctic Monkeys were among the 17 British artist titles in the 2014 top 100.

Share in the Netherlands – where Eric Clapton, Paolo Nutini and Bastille all enjoyed a good year – remained steady, as it did in Japan, where One Direction and Coldplay maintained a high profile in a notoriously tough market for non-domestic acts. The percentage of sales accounted for by UK artists slipped in both Germany and France, however – both territories where Sam Smith’s In The Lonely Hour made less of an impact.


Germany France

2009 16.7 15.9

2010 17.9 14.5

2011 17.1 17.0

2012 16.1 18.3

2013 17.9 13.4

2014 14.2 11.5

Australia 22.4

Italy 19.8

Netherlands 19.1

Sweden 14.0

Spain 11.9

Japan 4.0

Source: BPI based on Media Control GfK data Sources: BPI based on ARIA, GfK, Oricon data

UK Artists’ Share of Album Sales in Germany and France (%)

UK Artists’ Share of Album Sales – Selected Other Countries 2014 (%)

UK Music in Europe, Australia and Japanmulti-territory success for ed sheeran

17 17 17 17 20 22 23 24 25 27 27 27 27 27 27 28 31 36 36 36 36 36 44 45 47 49 49 50 50 5355 59 60 62 76

Arctic Monkeys – Sebastian Kim, Zackery MichaelEd Sheeran – Ben WattsColdplay – Anton CorbijnKaty Perry – Cass BirdPaloma Faith – Alice Hawkins5 Seconds of Summer – Tom Van SchelvenEminem – Jeremy DeputatKatherine Jenkins – Chloe MalletLudovico Einaudi – Leung Cho PanPaloma Faith – Alice HawkinsColdplay – Anton CorbijnPink Floyd – Harry BordenEd Sheeran – Ben WattsGeorge Ezra – Rob BlackhamFleetwood Mac – Herbert WorthingtonColdplay – Anton CorbijnDavid Guetta – Ellen von UnwerthPink Floyd – Harry BordenEd Sheeran – Ben WattsColdplay – Anton CorbijnGeorge Ezra – Rob BlackhamPaloma Faith – Alice HawkinsArctic Monkeys – Sebastian KimPink Floyd – Harry BordenGeorge Ezra – Rob BlackhamArctic Monkeys – Sebastian KimMilky Chance – James KendallAlt-J – BillYou Me At Six – Dan WiltonKiesza – Roger DeckkerCourtesy of ShazamFotolia.comFotolia.comFotolia.comFotolia.com

Picture Credits


MIDEM 2015 Palais des Festivals

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More information on midem.comTo exhibit, advertise or showcase your product, call Javier Lopez now on 020 7528 0086 or [email protected]

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BPI Market Information SeriesThe Market Information Series is a 12-month subscription service which enables non-BPI members to receive reports produced by the BPI’s Research and Information department. This subscription covers 12 monthly market information reports, a copy of the BPI's Music Market, annual information sheets (such as Sales by Type of Music) and ad hoc reports (in the past year this has included British Music in North America, UK Music in the World Market and a special report on the Classical market). Academic packages are also available. Contact [email protected] for more information.

Recording Industry in NumbersIFPI's Recording Industry in Numbers report provides a comprehensive picture of the global recorded music market and the key trends of the music business. It is an invaluable source of authoritative data, in-depth analysis and detailed sales figures, containing both global data and also national data for nearly territories. It is used by music companies, analysts, investors, commentators, academics and many others. Published in April 2015, it is free to full BPI members and available to purchase for non-members – visit http://rin.ifpi.org/ for details.

IFPI Digital Music Report 2015IFPI’s Digital Music Report examines the impact digital is having on the global music market, looking at digital trends and developments and how the industry is tackling piracy. Running to 44 pages and encompassing case studies and insight from leading executives, the report is a comprehensive overview of the part digital plays in the music market today and is free to download – visit www.ifpi.org.


Further Reading the bpi and ifpi have a number of other publications that you may be interested in:

L E G E N D SS U P E R S T A R S

N E X T B I G T H I N G

3 live venues. Hundreds of acts.

Music at The O2

Book your tickets at theo2.co.uk

Your personal music service

The more you listen, the better it gets.So you can spend more time listening and less time searching.

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streamer listens tomusic each day.

52%of UK smartphone owners feel

commercial radio can benarrow and repetitive.

SMARTPHONEis the most popular device to

stream music.

mixradiomusic.comSource: Survey 700 smartphone owners in UK (nat. representative) In combination with Incite

musictankedited by . chris green compiled by . rob crutchley the bpi gratefully acknowledges the ....

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