The music industry’s revenues in the Czech Republic last year increased by more than eight percent year on year to 1.18 billion crowns. Growth continues to be driven by streaming services, which grew by almost 45 percent in 2020. Sales of CDs and DVDs fell, while sales of vinyl records rose again by 12 percent. Digital distribution remains the dominant way of distributing music, according to the Czech branch of the International Federation of the Music Industry (IFPI).
“This highly complex year was challenging to even for all the artists who found themselves without live income from day today. It is all the more gratifying that the audience expresses their support for their artists by buying their work online, as evidenced by The music industry is experiencing further market growth thanks to digital sales, even though revenues from general operations and sales of physical media have fallen significantly, “said IFPI representative Leoš Bednář.
Universal Music defended its leading position in the Czech music market in 2020, Warner Music came in second, and Sony Music came in third. Supraphon continues to hold the position of the largest domestic publisher. “2020 was a year of loss for the artist’s main source of income, concert activities. Many of them found themselves in existential problems. Therefore, I am very happy that the sale of recordings brings visible money, which helps,” said Tomáš Filip on behalf of Universal Music.
According to the IFPI, the impact of the covid-19 pandemic will have a more pronounced effect on the state of the music industry only in the coming years, when collective administrations will be allocated revenues from public operations, which will fall dramatically due to closed establishments. The estimate of the decline in this segment is up to 30 percent.
After growing sales of physical media in 2019 by eight percent, which is due, among other things, to sales associated with the death of Karel Gott, in 2020, on the contrary, they recorded an eight percent decline in these sales. Sales of CDs and DVDs fell 17 percent and six percent, respectively.
Market data show that digital and physical sales are in the ratio of 75:25. In the Czech Republic, all primary streaming services Spotify, Apple Music, YouTube Music, Deezer, and Amazon Music, are still available. The downward trend in download revenues continues, falling by 18 percent year on year. Download revenue now represents only three percent of total digital sales.
The enforcement of copyright and related rights on the Internet should undergo fundamental changes in the Member States of the European Union in 2021. The Copyright and Related Rights Directive in the Digital Single Market should be implemented in national law.
The European Commission pays attention to the online environment and is starting work on legislation that should address liability relations on the Internet (Digital Services Act).