Global Record Industry Drives A $100 Billion Market

International record industry trade group IFPI reports that global retail sales of recorded music totaled $33 billion in 2005.  But the record industry is also the driver of a much larger $100 billion market that includes live performances ($14 billion), online and brick and mortar retailers, cell and ringtone vendors, equipment manufacturers (portable player sales alone were $9 billion last year), radio ad revenues ($30 billion), performance rights and publishing collection, music magazines, and satellite and internet broadcasting. 

The IFPI report points out that music is the catalyst for a wide range of commercial activity and that this content "has been created without subsidy or special measures". They claim that "the recording industry is the principal investor in music talent and invests more than 17% of its revenues on the search for and development of new artists".  But no documentation is offered to buttress the 17% figure; and it is widely believed that more and more artist development is happening outside of the major labels at small indies, on the internet, at college radio and in the clubs.

Wherever it’s orgin, "music is one of the leading creative industries driving the media and entertainment sector that now accounts for more than seven per cent of global GDP and a worth an estimated US $1.3 trillion – with experts predicting this figure will grow to US $1.8 trillion by 2009 (Source: PWC)," concludes the IFPI.