Music Industry

Good Year for Swedish Record Labels

After a few hard decades it seems Swedish record companies and labels are doing better. According to a fresh report sales increased by 1,7 percent in the first half of this year following a 10 percent increase in sales during 2009, newspaper Dagens Nyheter reports.

The major increase in digital streaming via companies such as Spotify is one of he main reasons for the increase in revenue. The figures presented by trade organisation IFPI show a stunning 242 percent growth in digitally streamed music and the potential for growth is huge, as streaming so far only makes up for about 20 percent of the revenue.

Record companies still get about 64 percent of their revenue from album sales but that part of the business has decreased by about 18 percent in the first half of this year. But the companies are still struggling on the international market where sales dropped with another 7 percent during 2009. The largest decrease in sales was in the US and Japan.