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World music gross sales grew for the ninth consecutive 12 months in 2023, with recorded music revenues rising in each market and area, and throughout nearly all codecs, based on the Worldwide Federation of the Phonographic Business’s (IFPI) World Music Report 2024.
Whole revenues climbed to $28.6 billion, an increase of simply over 10% on the earlier 12 months, and the second highest development price on file after 2021’s 18.5% year-on-year spike.
2023’s whole gross sales determine is the very best degree since 1999 — when IFPI first began compiling international music revenues and gross sales totaled $22.2 billion — on an absolute greenback foundation, not accounting for inflation. Piracy and declining bodily gross sales noticed the market backside out at $13 billion in 2014.
Driving final 12 months’s development was an 11.2% rise in paid streaming subscription income, which totaled $14 billion, up from $12.7 billion in 2022, and accounted for nearly half (48.9%) of worldwide music gross sales.
The rise in international paid streaming income comes after most of the main streaming providers, together with Spotify, Apple Music, Amazon Music, YouTube Music and Deezer, all raised their subscription costs in key territories over the previous 12-18 months. For almost all of streaming providers, the hikes have been their first value rises since launching greater than a decade in the past.
Regardless of the rising price for shoppers, the variety of music streaming subscribers continues to develop globally, with IFPI reporting that the variety of paid subscriptions to streaming providers surpassed 500 million for the primary time in 2023.
When shared usership and household accounts are thought-about, there at the moment are greater than 667 million customers of paid subscription accounts globally, says the London-based group, up 13% from the 589 million recorded within the earlier 12 months.
Whole streaming revenues, comprising of paid subscription and advertising-supported tiers, rose 10% to $19.3 billion to make up 67% of worldwide recorded music gross sales, roughly flat with final 12 months’s share of the market.
However, streaming’s year-on-year development continues to gradual on account of its already excessive penetration of the worldwide music market. In 2021, whole streaming revenues spiked 24% year-on-year. In 2022, the speed of development had greater than halved to 11.5%.
Gross sales Up Throughout (Practically) All Codecs
Though streaming continues to dominate international music revenues, 2023 additionally noticed robust beneficial properties in bodily file gross sales and efficiency rights revenues. Mixed CD and vinyl revenues grew for a 3rd consecutive 12 months to $5.1 billion, up 13% on 2022’s whole, with Asia producing nearly half (49%) of all bodily revenues worldwide.
IFPI attributed the area’s continued dominance of the bodily market to robust gross sales of Ok-pop acts reminiscent of boyband Seventeen, who topped IFPI’s 2023 international album charts with FML and likewise had the 12 months’s eighth best-selling album with follow-up set SEVENTEENTH HEAVEN.
By way of market share, bodily accounted for just below 18% of the general market final 12 months, marginally up from 17.5% in 2022 however nonetheless down on 2021’s share.
Efficiency rights income, in the meantime, climbed 9.5% to $2.7 billion, representing 9.5% of worldwide revenues, whereas sync revenue was up 4.7% to $632 Million, representing 2.2%.
The one codecs to file a decline in 2023 have been digital downloads and what IFPI classifies as different (non-streaming) digital codecs, which fell by 2.6% to $900 million, representing simply 3.2% of the worldwide market.
“The figures on this 12 months’s report mirror a very international and numerous {industry},” stated IFPI chief monetary officer and interim joint head John Nolan in an announcement accompanying the report.
Nolan stated the robust rise in paid streaming subscribers worldwide, in addition to providers’ value will increase, contributed “considerably” to total income development. He additionally stated the music {industry}’s restoration from its lows of a decade in the past wouldn’t have been doable with out “file firms’ sustained funding in artists and their careers.”
In keeping with IFPI figures, file firms make investments $7.1 billion annually globally in A&R and advertising and marketing alone. They’re additionally paying out extra money than ever earlier than to artists, stated IFPI, with label funds to musicians rising by 96% between 2016 and 2021, versus a 63% rise in file firm revenues.
No Change within the World High 10 Music Markets, With U.S. Nonetheless On High
By way of world markets, IFPI stated that music revenues have been up in the entire 58 markets it tracks, with the U.S. retaining its long-held No. 1 place with music gross sales rising 7.2%, in comparison with 4.8% development final 12 months.
Japan holds regular in second place with gross sales rising 7.6% in 2023. The third and fourth-biggest markets for recorded music stay the UK (+8.1%) and Germany (+7%), respectively.
The remainder of the highest 10 is made up of China (+25.9%), representing the quickest price of enhance in any high 10 market, adopted by France (+4.4%), South Korea (proportion not offered), Canada (+12.2%), Brazil (+13.4%) and Australia (+11.3%). (IFPI’s free-to-access report doesn’t present market-by-market income breakdowns).
These cross-market beneficial properties are mirrored on a regional foundation with revenues from the U.S. and Canada area up 7.4%.
Mixed, the U.S. and Canada area accounts for nearly 41% of worldwide recorded music revenues, experiences IFPI, whereas Latin America — the place streaming makes up 86% of the market — noticed development of 19.4%, far outpacing the worldwide development price and representing the 14th consecutive 12 months of income development within the area.
Europe stays the second-biggest area for music gross sales, accounting for greater than 1 / 4 (28%) of worldwide revenues and rising 8.9% year-on-year. In third place is Asia, the place revenues rose by nearly 15% in 2023, pushed by robust beneficial properties in bodily and digital gross sales.
As soon as once more, the fastest-growing market area was Sub-Saharan Africa, which recorded a 25% rise in music gross sales, largely pushed by elevated take up of paid subscription providers (up by just below 1 / 4) and the thriving South African music market, which grew by nearly a fifth and contributed greater than three quarters of the area’s income.
Revenues within the Center East and North Africa, the place streaming holds a 98% share of the recorded music market, rose by nearly 15%.
(IFPI makes use of present trade charges when compiling its World Music Report, restating all historic native forex values on an annual foundation. Market values subsequently range retrospectively on account of international forex actions, says IFPI, which represents greater than 8,000 file firm members worldwide, together with all three main labels, Common Music Group, Sony Music Leisure and Warner Music Group.)
Transformation Underway
Current on the World Music report’s launch in central London have been senior executives from all three main labels, in addition to Konrad von Löhneysen, founder and director of Germany-based unbiased Embassy Of Music. Leila Oliveira, president of Warner Music Brazil, additionally participated within the occasion by way of video name from Rio.
Reflecting present {industry} traits, the potential impression of synthetic intelligence (AI) on the file enterprise, and significantly dangers round generative AI, was a key matter of dialog among the many audio system.
“The fact is that we’re in the beginning levels of one other transformational occasion for the music {industry},” stated Dennis Kooker, president of worldwide digital enterprise at Sony Music Leisure.
“Whereas I’m obsessed with the place the evolution will lead, it’s important that we discover new merchandise and new enterprise fashions round these applied sciences to make sure the way forward for human creativity will be invested in, and that creators will be rewarded,” Kooker stated.
He subsequently warned: “We should additionally combat the place that too many firms need to take to disregard copyright and mental property rights, and use our content material with out permission or with out correct compensation.”
Adam Granite, government vp of market growth at Common Music Group, stated that whereas AI used “within the service of artists is great,” AI that makes use of musicians’ work “with out authorization and compensation is just not.”
“We consider it’s completely doable to develop and undertake AI expertise whereas additionally making certain artists rights are protected,” stated Granite, citing UMG’s latest partnerships with Roland Company and YouTube on AI initiatives as industry-led developments that give “artists a seat on the desk and can assist safeguard their rights” as extra AI merchandise enter the music enterprise.
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