Tradition music barriers falling.

Traditional music barriers falling as record companies see rise in non- traditional music revenue streams

by Ben Cardew

BPI publishes figures revealing a diversifying business model for record companies as non-traditional revenue streams enjoy 13.8% increase in 2007

The amount of money British record companies made from licensing and other non-traditional music streams shot up in 2007, according to figures released today (Monday) by the BPI.

For the first time in its history, the record company body has issued statistics showing the money UK labels generate through areas other than recorded music, including income derived from outside recording copyright.

They show that total record company revenues outside of music sales increased by 13.8% in 2007 to #121.6m, and now account for 11.4% of labels' domestic income, after increasing from #106.9m in 2006.

Crucially, in what may be the first concrete evidence of the mythical 360-degree model, non-recording copyright revenues increased 16.2% in 2007, with deals including income from merchandise, touring, the use of artist logos, digital products such as mobile phone wallpaper and sponsorship deals. Sync income also grew strongly, increasing 20.1% over the year.