Tim Ingham musicweek.com 8/29/14
Mexico is undergoing a streaming music revolution
Revenues generated by streaming music services in Mexico have exploded in the past 12 months – up a staggering 130% year-on-year in the first half of 2014.
According to new figures from the Mexican Association of Phonographic Producers (Amprofon), analysed by Music Week, income to the local record industry from streaming services more than doubled to around 175 million Pesos (£8.0 million) in the six months to June 30.
That was enough to claim a 41% share of total digital music sales, which were up 14% on H1 2013, pulling in 428 million Pesos (£19.7m) overall.
Streaming services legally available in the territory include Spotify, Deezer and Rdio.
In total, the Mexican record industry generated revenues of 724 million Pesos (£33.3 million) in the six months, of which 59% were digital.
In turn, 59% of those digital revenues were accrued from sales. Of these, single tracks claimed 29%, albums 15%, mobile content 8%, ringtones 5% and music videos 1%.
That means 41% of record music’s overall revenues were claimed by physical formats, showing the continued strong position of the sector in Mexico.
83% of these sales of physical music were on CD; 12% were on DVD audio; 4% on DVD video; 1% was claimed by a combination of vinyl, cassettes, mini discs and Blu Ray.
More than a third (34%) of physical sales were claimed by Mexican artists. Just 29% were made up of ‘international anglo’ – i.e. non-Mexican English speaking artists.
Previously notorious as a hotbed of piracy, according to IFPI figures the Mexican record market increased in value by 17% between 2008 and 2012.
However, the annual market in Mexico fell by 4.4% in 2013 to total $135 million (1.76bn Pesos; £81.28m).
Taking into account the territory’s worth in the first half of 2014 – 724 million Peso (£33.3m) – would suggest the country’s overall 12-month value is once again likely to slip slightly this year.