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. More Power Will Shift to Indie Labels. 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. These licensing deals create exciting new future sources of income for music IP owners. Similarly, the three largest music publishers – Sony (25%), Universal Music Publishing (21%), and Warner Chappell Music (12%) – maintain a 58% share of the music publishing market. 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. Live Nation management expects concerts to return to scale by summer 2021. 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. “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. The global music community has … Music industry revenues have held up relatively well compared to other industries during the COVID-19 pandemic. Concert Industry Continues Growth in 2020. Wall Street has been taking notice of the music industry’s secular growth story. The three “major” record labels and publishers have seen industry trends begin to play out in recent earnings reports. The record industry has seen a lot of change over the years. 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. These licensing deals create exciting new future sources of income for music IP owners. The latest music industry news and analysis, including the latest in tech, legal, dealmaking, acquisitions, and broader industry trends. Further protections are given under law once the work is registered with the U.S. For the full year, Sirius XM management expects total company sales to decline by 3%. As streaming continues to take a greater share of sales, the majors’ operating margins will benefit. If the economy recovers in 2021, recorded music revenue will return to growth also. Get Reports. 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. Sirius XM, the satellite and digital radio broadcaster, saw total company sales decline 5% year-on-year in Q2 2020, driven by a 34% decline in advertising revenue. Its view is corroborated by Goldman Sachs, which projects live music revenue to decrease 75% in 2020 before recovering in 2021 or 2022. The three “major” record labels and publishers have seen industry trends begin to play out in recent earnings reports. There are countless ways to gauge the health of the music industry. Nigeria’s Music industry revenue to hit $50 million by 2020 – Report. 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. Barring a major surprise, 2019 will have been the fifth straight year of growth for the global recorded music … However, according to Billboard, these declines returned to growth by the end of April. Examples include Universal Music, Sony Music, Warner Music Group, and BMG, to name a few. Its members comprise the most vibrant record industry … Ariana Grande. Record labels and music publishers are the traditional investors in the space. 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. 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. 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. Recently, our friends at Toptal did a thorough examination of the music industry from a strictly financial point of view. 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. Meanwhile, the global music publishing industry has proven resilient throughout the economic cycles of the past decade. Examples include Universal Music, Sony Music, Warner Music Group, and BMG, to name a few. 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). Music – including lyrics, composition, and sound recording – is protected under copyright law. 40 Years of Music Industry Sales. Experts predict that by 2024, almost $5 billion in revenue will come from streaming. 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. 8-tracks took a short-lived run at the dominance of vinyl, cassettes faded away as compact discs took the world by storm, and through it all, the music industry … In short, the M&A market is very active, with BMG’s CEO Hartwig Masuch even calling the current environment “a feeding frenzy.”. 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. Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. 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. Universal Music Group was the only label to see revenue increase year-on-year up to June 30, 2020 (+6%), while Sony (-12%) and Warner Music Group (-5%) reported declines. However, according to Billboard, these declines returned to growth by the end of April. Most music publishing rights are regulated, and recent regulatory announcements have been beneficial to music IP rightsholders’ interests. Sirius XM, the satellite and digital radio broadcaster, saw total company sales decline 5% year-on-year in Q2 2020, driven by a 34% decline in advertising revenue. This one isn’t a huge surprise, given the way indie labels have … With capital pouring into the space, music IP acquisition activity has been hot. Analysis: the music industry enters 2020 on a wave of growth – and optimism. 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. Copyright Office. His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets. 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. Indian Music Industry Stats: India's Digital Revolution By the Numbers. Overall, the 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. In general, rights last for 70 years after an author’s death. 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. 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. As a result, Spotify’s Q2 2020 premium revenue increased by 17% year-on-year. “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). 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. Social distancing restrictions have severely impacted the live music market. Most music publishing rights are regulated, and recent regulatory announcements have been beneficial to music IP rightsholders’ interests. In 2018, India became the 5th biggest economy in the world in terms of the current GDP. What is piracy and what are its consequences to society? IFPI, the organisation that represents the recorded music industry worldwide, today issued its annual Global Music Report. 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. You may also be interested in these Music Industry reports, published by private editors. Spotify Monthly Active Users (MAUs): 2017-2020 (Q2). At the same time, other forms of music consumption, especially live, have suffered. Warner Music Group: music publishing revenue 2004-2020 Concert business Share of U.S. consumers who attended live music concerts in 2018 Prominent royalty funds include Hipgnosis Songs Fund, Round Hill Music, Kobalt Capital, Tempo Music Investments, and Shamrock Capital. 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. August 2019. Recently, our friends at Toptal did a thorough examination of the music industry from a strictly financial point of view. “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). Click on the map for the growth figures in each region. 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, … They sign performing artists and songwriters and help them create and monetize new music. While several streaming services are currently appealing the decision, it could have a very positive impact on composition mechanical royalties for US rightsholders. 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. Monitor the impact on your business. 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. Types of IP are copyrights, trademarks, patents, and trade secrets terrestrial radio although. 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