The International Federation of Phonographic Industry, or IFPI, is a trade group that represents recording labels, most importantly Sony Music Entertainment, Universal Music Group, and Warner Music Group. This morning, IFPI chief executive Francis Moore released the preliminary findings of a report on why artist royalties are so low.
The most important conclusion of the study was that artist losses over the past five years are actually far less drastic than those experienced by the labels themselves. “The IFPI research covered payments to locally signed artists by record companies in 18 markets worldwide,” the report stated. “It found that industry revenues in those countries declined by 17 per cent over from 2009 to 2014, while corresponding payments to artists declined by only 6 per cent.”
And what about the gains? The IFPI study took a look at the hyper-explosive Swedish streaming market over the past five years, and found that artist compensation gains are at least double that of the labels.