His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets. These licensing deals create exciting new future sources of income for music IP owners. 2020: State Of The Music Industry. The following chart from IFPI shows the evolution of the industry’s revenue composition and how streaming growth has more than offset declines in physical and downloaded formats over the past decade. Ariana Grande. Before signing the licensing deal, the NMPA claimed that approximately 50% of the music publishing market was unlicensed with TikTok. Global growth by region. Most music publishing rights are regulated, and recent regulatory announcements have been beneficial to music IP rightsholders’ interests. Prominent royalty funds include Hipgnosis Songs Fund, Round Hill Music, Kobalt Capital, Tempo Music Investments, and Shamrock Capital. Global Music Synthesizers … If the economy recovers in 2021, recorded music revenue will return to growth also. Talk to Sam +1 718 303 2384. In recent years, billions of dollars have been raised, privately and publicly, to invest in music intellectual property rights and the companies that own them: Meanwhile, several private equity firms have raised funds focused on music IP rights: Overall, there is a significant amount of activity in the equity and debt capital markets for music IP assets. Further protections are given under law once the work is registered with the U.S. I will send you information. Write me at mail. While several streaming services are currently appealing the decision, it could have a very positive impact on composition mechanical royalties for US rightsholders. Music – including lyrics, composition, and sound recording – is protected under copyright law. In short, the M&A market is very active, with BMG’s CEO Hartwig Masuch even calling the current environment “a feeding frenzy.”. There have been modest disruptions to streaming as a result of COVID-19. Recent years have seen several significant deals: Since going public in July 2018, Hipgnosis Songs Fund has also spent more than $1 billion, acquiring more than 60 catalogs. The three “major” record labels and publishers have seen industry trends begin to play out in recent earnings reports. Spotify Monthly Active Users (MAUs): 2017-2020 (Q2). iHeartMedia did note that annual revenue declines had improved each month from April (down 50% year-on-year) through July (down 27% year-on-year). 03 Shakira … As streaming continues to take a greater share of sales, the majors’ operating margins will benefit. For example, in July 2020, the National Music Publishers’ Association (NMPA) reached a licensing agreement with TikTok, a platform with roughly 100 million US monthly active users and 700 million worldwide monthly active users. With the internet and digital technologies driving rapid change within the music industry, articles about new releases and who has been hired and fired are no longer enough. ASCAP (one of the largest PROs) President Paul Williams noted in April 2020 that as more licensee businesses shut down, the pandemic will “have a material and negative impact financially on almost every category of licensing.”. If the trend continues, China and India will increasingly grow as a revenue source for the industry. Other sources of music income, especially live music, have suffered during the pandemic. Indian Music Industry Stats: India's Digital Revolution By the Numbers. Further protections are given under law once the work is registered with the U.S. “The unique nature and the diversification of our sources of income mean music publishers are well protected compared to most businesses.”, Josh Gruss, CEO of Round Hill Music (Source). The growth of digital streaming has allowed consumers to access and enjoy music regardless of social distancing restrictions. Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. Most music publishing rights are regulated, and recent regulatory announcements have been beneficial to music IP rightsholders’ interests. Examples include Universal Music, Sony Music, Warner Music Group, and BMG, to name a few. According to Music & Copyright, the three largest record labels – Universal Music Group (32% market share), Sony Music Entertainment (20%), and Warner Music Group (16%) – hold a 68% share of the music recording market. See the following list: Visits per country It’s interesting to note that the UK secured a spot among the top 10, despite a range of restrictions on pirate sites and public outcry ag… Its view is corroborated by Goldman Sachs, which projects live music revenue to decrease 75% in 2020 before recovering in 2021 or 2022. iHeartMedia did note that annual revenue declines had improved each month from April (down 50% year-on-year) through July (down 27% year-on-year). Other sources of music income, especially live music, have suffered during the pandemic. Recent years have seen several significant deals: Since going public in July 2018, Hipgnosis Songs Fund has also spent more than $1 billion, acquiring more than 60 catalogs. The global music recording industry is back in growth territory again. How the financial aspect of the music industry will increasingly detach from the artistic side (and … Their work considers the changing trends in consumption, the spread of COVID-19, and many more factors that inform what is happening day to day throughout the music business. If the trend continues, China and India will increasingly grow as a revenue source for the industry. Despite the gulf in spending, IFPI reported strong 2019 recorded music revenue growth in China and India of 16% and 19%, respectively, attributed to progress in copyright enforcement and streaming adoption. Nigeria’s Music industry revenue to hit $50 million by 2020 – Report. Netflix will spend over $17 billion on content in 2020. James Shotwell is the Director of Customer Engagement at Haulix and host of the company’s podcast, Inside Music. Examples include Universal Music, Sony Music, Warner Music Group, and BMG, to name a few. $ 3500. Media and Entertainment; Music… According to the International Confederation of Societies of Authors and Composers (CISAC), publishing collections (performance royalties) increased from €6.5 billion in 2013 to €8.5 billion in 2018. According to the International Federation of the Phonographic Industry (IFPI), recorded music revenue returned to growth in 2015, after nearly two decades of piracy-driven declines. We also offer combined rates with MusicThinkTank. Record labels and music publishers are the traditional investors in the space. When music is put into tangible form (e.g., recorded or written in sheet music), a copyright is created. As streaming continues to take a greater share of sales, the majors’ operating margins will benefit. With capital pouring into the space, music IP acquisition activity has been hot. With capital pouring into the space, music IP acquisition activity has been hot. Meanwhile, the global music publishing industry has proven resilient throughout the economic cycles of the past decade. In 2018, India became the 5th biggest economy in the world in terms of the current GDP. In its latest report released in 2018, the company found there were over 190 billion visits to pirate sites in 2018 alone. For example, in July 2020, the National Music Publishers’ Association (NMPA) reached a licensing agreement with TikTok, a platform with roughly 100 million US monthly active users and 700 million worldwide monthly active users. So 2020 has hit musicians all around the world pretty hard. Emerging markets, such as China and India, are only just starting to pay for music IP. Emerging markets, such as China and India, are only just starting to pay for music IP. There have been modest disruptions to streaming as a result of COVID-19. The International Federation of the Phonographic Industry (IFPI) put the total value of the recording industry at $20.2 billion in 2019. Global Music Recording Industry Revenues: 2001-2019 ($ Billion). Lower advertising spending has also impacted terrestrial radio, although the pullback may be reversing. Music industry revenues have held up relatively well compared to other industries during the COVID-19 pandemic. Several positive catalysts for music IP rightsholders are currently on the horizon, including: There are new licensing opportunities for music IP owners that are just starting to emerge. In a future article, I will go deeper into the asset class of royalties and, in particular, why music royalties are considered an attractive asset class in the current market environment. It’s the fastest-growing … Analysis: the music industry enters 2020 on a wave of growth – and optimism. IFPI notes that global streaming revenues grew at a 42% CAGR (compound annual growth rate) since 2015, compared to the entire recording industry’s 9% CAGR. Will Page, the former chief economist at Spotify, estimates that the global publishing business – CISAC collections plus estimates of non-CISAC publisher revenues from Music & Copyright – is worth $11.7 billion in 2020. Its members comprise the most vibrant record industry … As a result, royalties paid by radio stations to Performance Rights Organizations (PROs) will likely fall sharply over the next couple of quarters. (Billboard) On the other hand, music industry statistics for 2020 w eren’t so promising for Asia… Frances Moore, chief executive of IFPI, said: “The Global Music Report we issued today covers results for 2019 and reflects the successful work and investment of music … The revenue from recorded music in Nigerian has been projected to generate $50 million (about N18 billion naira) by 2020. Oct 26, 2020: $15,750: UNIVERSAL MUSIC-MGB NA LLC 2110 Colorado Ave Ste 110 Santa Monica, CA : Oct 23, 2020: $16,230: WARNER MUSIC GROUP CORP. 3400 West Olive Ave Burbank, CA : Oct 21, … Engagement with streaming drives growth of the global music market . Music Spend per Capita Across Regions: 2015 (USD). The convenience and personalization of music streaming, combined with the accessibility afforded by smartphones and smart devices, has driven recorded music’s growth. The music recording and publishing industries have many players. iHeartMedia, the owner of 800+ AM/FM radio stations, saw an even larger impact than Sirius XM, with Q2 2020 sales declining 47% year-on-year. At Haulix, we often examine the volume of new releases and the reception they see when consider how well things are going. Live Nation management expects concerts to return to scale by summer 2021. 2019 foreshadowed major shifts in … For example, US musical composition mechanical royalties are regulated by the Copyright Royalty Board (CRB), a panel of three judges who determine music royalty rates and terms over a period of time. At the same time, other forms of music consumption, especially live, have suffered. Stock Music Market - Global Outlook and Forecast 2019-2024. Goldman Sachs’ “Music in the Air” analysis notes that paid streaming penetration rates in China and India are currently 4% and 3%, respectively. Music is just one thing that can’t be neglected in anyway… Music gives inspiration https://hipflexy.com. Spotify’s Q2 2020 Monthly Active Users (MAU) and paid streaming subscribers increased by 29% and 27% year-on-year, respectively, which was at the top of its guidance. Others may look at touring revenue, audience sizes, or any one of a million other data points. As a result, Spotify’s Q2 2020 premium revenue increased by 17% year-on-year. “I swear by Hypebot every morning over breakfast.” Derek Sivers Founder, CD Baby, “Hypebot is the most focused music business centric resource we have.” Celia Hirschman One Little Indian, Downtown Marketing & KCRW-FM. In some instances, royalty funds have also signed artists and songwriters to release new music, blurring the line between them and traditional labels and publishers. Inside the results, all three attributed positive growth trends to streaming, but pandemic-related lockdowns negatively impacted non-digital revenues, especially in the areas of merchandise, physicals (e.g., CDs), and artist services. How Many Spotify Streams Are Necessary To Live Above The Poverty Line? According to the International Confederation of Societies of Authors and Composers (CISAC), publishing collections (performance royalties) increased from €6.5 billion in 2013 to €8.5 billion in 2018. In January 2018, the CRB ruled that on-demand subscription streaming services (e.g., Spotify and Apple Music) must increase the percentage of revenue paid to songwriters and publishers by 44% to 15.1% of revenue over the five years of 2018 to 2022. Click on the map for the growth figures in each region. Additionally, in 2019, the music industry posted a 32.9% growth in paid streaming revenue. Live Nation management expects concerts to return to scale by summer 2021. While year-end tallies of 2019’s top-grossing tours weren’t yet available as we went to press, there’s little question that this year will be remembered as one of the biggest ones ever for the concert industry. Short-form videos (e.g., TikTok and Triller), e-fitness (e.g., Peloton), and other platforms (e.g., Facebook) are just starting to license music IP from rightsholders, creating new sources of future monetization. The most common types of IP are copyrights, trademarks, patents, and trade secrets. Wall Street has been taking notice of the music industry’s secular growth story. As a result, Spotify’s Q2 2020 premium revenue increased by 17% year-on-year. Short-form videos (e.g., TikTok and Triller), e-fitness (e.g., Peloton), and other platforms (e.g., Facebook) are just starting to license music IP from rightsholders, creating new sources of future monetization. The music industry has reached at a global in a way it was never before. Record labels and music publishers are the traditional investors in the space. Industries. Several positive catalysts for music IP rightsholders are currently on the horizon, including: There are new licensing opportunities for music IP owners that are just starting to emerge. Prominent royalty funds include Hipgnosis Songs Fund, Round Hill Music, Kobalt Capital, Tempo Music Investments, and Shamrock Capital. The article will review the main levers that active investors use when attempting to increase music IP’s value, the potential pitfalls to look out for, and the instruments used for IP investing. Meanwhile, the global music publishing industry has proven resilient throughout the economic cycles of the past decade. The growth of digital streaming has allowed consumers to access and enjoy music regardless of social distancing restrictions. Music Streaming Market 2020 Statistics, Size, Trends, Technology, Growth with Top Sponsorship Companies Detailed Analysis by Forecast to 2025 ... Piracy is a major problem faced by music industry … Inside the results, all three attributed positive growth trends to streaming, but pandemic-related lockdowns negatively impacted non-digital revenues, especially in the areas of merchandise, physicals (e.g., CDs), and artist services. The biggest music trends to watch in 2020. … The article will review the main levers that active investors use when attempting to increase music IP’s value, the potential pitfalls to look out for, and the instruments used for IP investing. The following chart from IFPI shows the evolution of the industry’s revenue composition and how streaming growth has more than offset declines in physical and downloaded formats over the past decade. Meanwhile, music royalty funds focus on acquiring existing music rights with a history of stable cash flows. They sign performing artists and songwriters and help them create and monetize new music. Lucky for us, they’re allowing us to share their insights with you. Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. This one isn’t a huge surprise, given the way indie labels have … iHeartMedia, the owner of 800+ AM/FM radio stations, saw an even larger impact than Sirius XM, with Q2 2020 sales declining 47% year-on-year. While several streaming services are currently appealing the decision, it could have a very positive impact on composition mechanical royalties for US rightsholders. While 2020 has been a… challenging year for the music business, certain aspects of the industry have found a way to endure and, in some cases, even grow. Universal, Sony, and Warner are collectively referred to as the “Majors,” or the “Big Three.” Industry concentration is relevant in music because the majors’ deals with streaming services benefit from their market share: As streaming services’ revenues grow, so should the majors’ income. Get Reports. Music royalty fund formation has increased significantly over the past several years. Lucky for us, they’re allowing us to share their insights with you. The global industry’s revenue bottomed out at $14 billion in 2014 but grew to $20 billion in 2019, back in line with 2004 levels. Social distancing restrictions have severely impacted the live music market. At Haulix, we often examine the volume of new releases and the reception they see when consider how well things are going. Clive Young ⋅ Published: January 2, 2020 Goldman Sachs’ “Music in the Air” analysis notes that paid streaming penetration rates in China and India are currently 4% and 3%, respectively. The global recorded music industry’s streaming revenue has grown steadily from $1 billion in 2012 to $8.9 billion in 2018. What is piracy and what are its consequences to society? His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets. For the full year, Sirius XM management expects total company sales to decline by 3%. Overall, the industry … In recent years, billions of dollars have been raised, privately and publicly, to invest in music intellectual property rights and the companies that own them: Meanwhile, several private equity firms have raised funds focused on music IP rights: Overall, there is a significant amount of activity in the equity and debt capital markets for music IP assets. But what is coming next... Will livestreams be staying? However, according to Billboard, these declines returned to growth by the end of April. Indeed, the modest decline in engagement measured by listening hours has not impacted consumers’ willingness to pay for audio streaming. He is also a public speaker known for promoting careers in the entertainment industry, as well as an entertainment journalist with over a decade of experience. Experts predict that by 2024, almost $5 billion in revenue will come from streaming. Concert Industry Continues Growth in 2020. Hypebot is read daily by more than 30,000 music industry professionals including executives and senior staff of music related tech firms, internet based music sites, every major label group and most indies as well as many managers, artists and members of the live music community: Contact us for the latesst stats, ad rates and sponosorship opportunites. The music industry is concentrated and dominated by three main players. The global music market is expected to witness a CAGR of 8.5% in the forecast period (2020-2025). According to Music & Copyright, the three largest record labels – Universal Music Group (32% market share), Sony Music Entertainment (20%), and Warner Music Group (16%) – hold a 68% share of the music recording market. Music sales grew 7.2% in 2019 after being flat in 2018. All rights reserved. Our up to the minute industry news alongside insightful commentary helps our readers sift through the rumors and developments to find the information they need to keep their businesses moving forward. 5. Warner Music Group: music publishing revenue 2004-2020 Concert business Share of U.S. consumers who attended live music concerts in 2018 For the full year, Sirius XM management expects total company sales to decline by 3%. The Recording Industry Association of America® (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Furthermore, the following chart from Goldman shows how little is currently spent per capita on music in emerging markets relative to developed markets. Furthermore, streaming and digital download margins are roughly 50-60%, compared to physical margins of 40-50%, lower due to manufacturing and distribution costs. 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