music industry facts 2020

The combination of capital formation and increased acquisition activity has led music IP valuations to trend upward over the past few years. They sign performing artists and songwriters and help them create and monetize new music. For the full year, Sirius XM management expects total company sales to decline by 3%. At Haulix, we often examine the volume of new releases and the reception they see when consider how well things are going. As a result, Spotify’s Q2 2020 premium revenue increased by 17% year-on-year. 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. If the recession deepens significantly in the second half of 2020, the combined effect of higher unemployment and reduced consumer spending could result in a worst case scenario of -4.0% annual growth for recorded music. Furthermore, streaming and digital download margins are roughly 50-60%, compared to physical margins of 40-50%, lower due to manufacturing and distribution costs. 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 … The convenience and personalization of music streaming, combined with the accessibility afforded by smartphones and smart devices, has driven recorded music’s growth. Social distancing restrictions have severely impacted the live music market. 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. Before signing the licensing deal, the NMPA claimed that approximately 50% of the music publishing market was unlicensed with TikTok. Further protections are given under law once the work is registered with the U.S. The growth of digital streaming has allowed consumers to access and enjoy music regardless of social distancing restrictions. In general, rights last for 70 years after an author’s death. 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. Haulix New Music Recommendations for October 30, 2020, Michigan Independent Venues and Promoters Form New Trade Association, Six Important Lessons Artists Should Learn From 2020 [VIDEO], Spotify Wrapped For Artists 2020 Includes New Insights, The Best Time To Release Your Music [VIDEO], Haulix New Music Recommendations for November 27, 2020, The figure represents less than 11% of the 3.2 billion global smartphone, According to the Digital Media Association, the US market had 99 million paid streaming, In May 2020, Goldman Sachs estimated the entire music industry’s. The music industry is concentrated and dominated by three main players. In fact, Mozart sold the most CDs in 2016, beating out Adele, Drake, and Beyoncé, even though all of those artists had… At the same time, other forms of music consumption, especially live, have suffered. Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. Stock Music Market - Global Outlook and Forecast 2019-2024. 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. Its members comprise the most vibrant record industry … At the start of the pandemic, audio streaming saw a decrease in listening hours as consumers drove less and focused on other platforms (e.g., video streaming) and forms of entertainment (e.g., TV and video gaming). Most music publishing rights are regulated, and recent regulatory announcements have been beneficial to music IP rightsholders’ interests. So 2020 has hit musicians all around the world pretty hard. 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. 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. Lower advertising spending has also impacted terrestrial radio, although the pullback may be reversing. Netflix will spend over $17 billion on content in 2020. Prominent royalty funds include Hipgnosis Songs Fund, Round Hill Music, Kobalt Capital, Tempo Music Investments, and Shamrock Capital. But what is coming next... Will livestreams be staying? Nigeria’s Music industry revenue to hit $50 million by 2020 – Report. 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. I will send you information. “I swear by Hypebot every morning over breakfast.”, “Hypebot is the most focused music business centric resource we have.”, One Little Indian, Downtown Marketing & KCRW-FM. Record labels and music publishers are the traditional investors in the space. 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. The music industry is responsible for an estimated 1.9 million jobs in the United States alone, per the Recording Industry … According to IFPI’s 2019 Global Music Report, China was the seventh-largest music recording market, and India was not even in the top 10, despite having the world’s two largest populations. Music Industry 2020 - China Market Research & Statistics. 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. At the start of the pandemic, audio streaming saw a decrease in listening hours as consumers drove less and focused on other platforms (e.g., video streaming) and forms of entertainment (e.g., TV and video gaming). IFPI, the organisation that represents the recorded music industry worldwide, today issued its annual Global Music Report. 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. 02 Despacito by Luis Fonsi and Daddy Yankee have 6.6 billion views on YouTube as of February 2020. James Shotwell is the Director of Customer Engagement at Haulix and host of the company's podcast, Inside Music. 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… Indeed, the modest decline in engagement measured by listening hours has not impacted consumers’ willingness to pay for audio streaming. The convenience and personalization of music streaming, combined with the accessibility afforded by smartphones and smart devices, has driven recorded music’s growth. Barring a major surprise, 2019 will have been the fifth straight year of growth for the global recorded music … His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets. 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. Most of 2020 has been a disaster, but the ever-resilient music industry is finding a way to continue growing in spite of the global pandemic. That's a little extreme. 5. Examples include Universal Music, Sony Music, Warner Music Group, and BMG, to name a few. 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 $11.7 billion in 2020. According to the International Confederation of Societies of Authors and Composers (CISAC), publishing collections (performance royalties) increased from €6.5 billion in 2013 to €8.5 billion in 2018. var F14249_sb_wait=setInterval(F14249_sb_wait_fn,100); Start your FREE subscription to Hypebot today. Global Music Recording Industry Revenues: 2001-2019 ($ Billion). There are countless ways to gauge the health of the music industry. Music Spend per Capita Across Regions: 2015 (USD). Meanwhile, the global music publishing industry has proven resilient throughout the economic cycles of the past decade. The following statistics highlight how the market still has room to expand: Music royalty payments derive from the underlying intellectual property (IP) rights of songs. The combination of capital formation and increased acquisition activity has led music IP valuations to trend upward over the past few years. 03 Shakira … The following statistics highlight how the market still has room to expand: Music royalty payments derive from the underlying intellectual property (IP) rights of songs. While several streaming services are currently appealing the decision, it could have a very positive impact on composition mechanical royalties for US rightsholders. 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.”. Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. The growth of digital streaming has allowed consumers to access and enjoy music regardless of social distancing restrictions. Goldman Sachs’ “Music in the Air” analysis notes that paid streaming penetration rates in China and India are currently 4% and 3%, respectively. 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. How the financial aspect of the music industry will increasingly detach from the artistic side (and … … The global music market is expected to witness a CAGR of 8.5% in the forecast period (2020-2025). Record labels and music publishers are the traditional investors in the space. The global music recording industry is back in growth territory again. The reported global digital music revenue in 2018 to $2.3 billion. Others may look at touring revenue, audience sizes, or any one of a million other data points. The three “major” record labels and publishers have seen industry trends begin to play out in recent earnings reports. 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