UK digital music revenues surpass physical for the first time

Digital music revenues overtook physical for the first time in the UK in Q1 this year, accounting for more than half of the industry's trade revenues, according to a new report from the BPI. The figures show that digital made up 55.5% of the UK record industry's sales income, with revenues up 23.6% year on year to reach GBP86.5m (USD133.9m). That growth in digital services, which includes subscription and ad-funded streaming offerings, offset a drop in revenues from physical and fuelled an overall 2.7% growth in sales revenues, which came to GBP155.8m (USD241.2m) in the quarter. Physical revenues fell 15.1% to GBP69.3m (USD107.5m) signalling the continuing shift from formats such as the CD towards digital downloads and services such as Spotify, Rdio and Deezer in the UK.