Digital music revenue overtakes physical formats in U.K. for first time

Digital music downloads and streaming revenues for the first time ever have surpassed those of physical CDs in the United Kingdom, according to the British Phonographic Industry. Digital music accounted for 55.5% of U.K. music revenue between January and April of this year compared to 31% of worldwide industry revenue in 2011, with industry revenues growing by 2.7% to £155.8 million. Digital music revenue, including subscription and ad-supported services, grew by 23.6% year-over-year to £86.5 million, while revenue from physical formats fell by 15.1% to £69.3 million. Sales of digital albums increased by 22.7% to £35.9 million. Paid-for subscription services revenue almost doubled over the same month a year ago, increasing 93% to nearly £9 million, while revenue from ad-supported services such as Spotify increased by 20% to £3.4 million. The continued increase of digital revenues highlights the switch millions of users continue to make from physical music formats to digital downloads and streaming services. The British Phonographic Industry’s press release follows below.