Music revenue from the sale of physical media in South Africa declined by almost 29% between 2015 and 2016, the International Federation of the Phonographic Industry (IFPI) told MyBroadband.
In 2016, record companies in South Africa earned $17.5 million (±R230 million), down from $24.6 million (±R324 million) the year before.
Digital sales in the past year amounted to $14.7 million (±R193 million), up from $13.1 million (±R172 million) in 2015.
Streaming revenues in South Africa saw a 334.2% increase, from $1.877 million (±R25 million) to $8.15 million (±R107 million) year-on-year.
This helped offset declines in sales of physical media, as well as song and album downloads.
CDs still on top
According to IFPI’s data, physical revenues made up 52% of the South African market in 2015, while digital accounted for 28%.
This changed in 2016, with physical sales decreasing to 39% of the market, while digital revenues – including downloads and streaming – made up 33%.
“The South African market has been dominated for many years by physical sales, but they are declining rapidly,” said Tracy Fraser, managing director of Warner Music South Africa.
Digital is growing exponentially and there is still a lot of growth to come as smartphone penetration increases in South Africa, she said.
“Streaming is becoming very big for us, but it’s still in its infancy.”
Apple Music is the largest streaming service in South Africa, with Google Play and Deezer close behind, said Fraser.
This article first appeared on MyBroadband and is republished with permission.
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Because our IC infrastructure in South Africa sucks! Simple as that.