IFPI publishes global music market shares

June 16 2004

IFPI has today released the 2003 full year regional and global music company market shares.

IFPI published market shares for the first time in the Recording Industry in Numbers (RIN) 2002 - this is the third year of publication. The publication of Owned Content revenue shares by IFPI has become the authoritative and accepted standard.

Changes in 2003

These market share figures are for total physical product sales of music - including all audio and music video formats. The figures do not include digital downloads. IFPI will work with music companies to incorporate these in future years.

IFPI will also be publishing market share on a territory basis in RIN 2004 - due for publication early September 2004.

Market Shares and Definitions

Definition - Owned Content
Sales qualifying as Owned Content are wholesale sales of finished music product (audio and video) by the Member Company (i.e. record company) to retailers or to intermediate wholesalers, net of returns and discounts and exclusive of exports (in accordance with IFPI Data Definitions). The following defines Owned Content on a territory-by-territory basis:

• Sales of finished music product of repertoire owned by the Member Company
  
  
• Sales of finished music product of repertoire owned by the Member Company's majority owned (>50%) labels/companies
  
  
• Sales of finished music product of repertoire that is licensed-in by the Member Company or its majority owned label/company
  
  
• Sales of compilations/soundtracks and other finished music product based on joint-venture agreements between record companies. For example, in the case of a compilation called "Huge Hits Volume 1" - a joint venture of four companies with respective shares of 30:30:30:10 - hypothetical sales of $100,000 would be split for market share calculation purposes to $30,000, $30,000, $30,000, $10,000

The following do not qualify as Owned Content revenues:

• Sales of minority owned labels
  
  
• Sales of finished product from distribution deals
  
  
• Sales of finished music product by Member Companies licensees
  
  
• All other forms of revenue that are not wholesale sales of finished music product e.g. license income fees or royalty based income, etc

BMG/Zomba
BMG acquired Zomba in November 2002. Full calendar year qualifying sales for Zomba have been included in BMG figures in both 2002 and 2003.

Independents
IFPI recommends and very much welcomes independent record companies to submit information according to the above definitions. Any record company wishing to participate or know more about the project should contact IFPI Market Research.

Club Sales and Direct Mail
In the USA and Canada, IFPI calculates shares for this sector on a pro-rata basis. Company market shares based on the non-club and direct mail market (95% sales) are grossed up to represent the total market (100% of sales).

Exchange Rates
World and regional aggregated market shares are calculated based on IMF annual average exchange rates for 2003 applied to all periods - 2003 and 2002 (re-stated at 2003 rates).

Audit of Product Sales Data Supplied by Companies
IFPI does not audit sales data supplied by companies. The data is subject to internal audit by companies only, guided by the above Owned Content definition and notes. IFPI checks the resulting shares against secondary sources and National Group data where available.

For further information please contact:
Keith Jopling or Gabriela Lopes at IFPI Market Research or IFPI Communications Department, tel: +44 (0)20 7878 7900