Global recorded music revenues grow 7.4%
The global recorded music market grew by 7.4% in 2020, the sixth consecutive year of growth, according to IFPI, the organisation that represents the recorded music industry worldwide. Figures released today in IFPI’s Global Music Report show total revenues for 2020 were US$21.6 billion.
Growth was driven by streaming, especially by paid subscription streaming revenues, which increased by 18.5%. There were 443 million users of paid subscription accounts at the end of 2020. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues. The growth in streaming revenues more than offset the decline in other formats’ revenues, including physical revenues which declined 4.7%; and revenues from performance rights which declined 10.1% – largely as a result of the COVID-19 pandemic.
The work and investment of record companies has helped lay the foundations for a predominantly digital industry that proved its resilience against the extraordinary circumstances of 2020. In a challenging year, record companies have worked alongside their artist partners to support them in creating and recording music and the whole sector has continued to drive innovations in the ways fans can experience music around the world.
IFPI Chief Executive Frances Moore, said: “As the world contends with the COVID-19 pandemic, we are reminded of the enduring power of music to console, heal and lift our spirits.
“Some things are timeless, like the power of a great song or the connection between artists and fans. But some things have changed. With so much of the world in lockdown and live music shut down, in nearly every corner of the globe most fans enjoyed music via streaming.
“Fuelled by record companies’ ongoing investment in artists and their careers, along with innovative efforts to help artists bring music to fans in new ways, recorded music revenues grew globally for the sixth consecutive year, driven by subscription streaming. As record companies continue to expand their geographical footprint and cultural reach, music has become more globally connected today, than ever before and this growth has spread across all regions around the globe.
“With many impacted by the pandemic, and concerned with growing social injustices, record companies have worked hard to make a meaningful, lasting contribution to the world we want to live in.”
Growth in all the world’s regions
Recorded music revenues grew in every region around the world in 2020, including:
- Latin America maintained its position as the fastest-growing region globally (15.9%) as streaming revenues grew by 30.2% and accounted for 84.1% of the region’s total revenues.
- Asia grew 9.5% and digital revenues surpassed a 50% share of the region’s total revenues, for the first time. Excluding Japan (which saw a decline of 2.1% in revenue), Asia would have been the fastest-growing region, with exceptional growth of 29.9%
- Featured as a region in the report for the first time, recorded music revenues in the Africa & Middle East region increased by 8.4%, driven primarily by the Middle East & North Africa region (37.8%). Streaming dominated, with revenues up 36.4%.
- Revenues in Europe, the second-largest recorded music region in the world, grew by 3.5% as strong streaming growth of 20.7% offset declines in all other consumption formats.
- The US & Canada region grew 7.4% in 2020. The US market grew by 7.3% and Canadian recorded music revenues grew by 8.1%.
Visit the IFPI Global Music Report 2021 Microsite here for additional information and to download the free State of the Industry Report (English language).
Global Music Report 2021: Full Report – with Data and Analysis: Purchase the full data and analysis report here.
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22nd February 2021 – IFPI, the organisation that represents the recorded music industry worldwide, and four leading music licensing companies (MLCs) in Asia, working with music technology company BMAT, have launched SoundSys, a first-ever, fully scalable, shared system for the distribution of sound recording performance rights revenue around the world.
IFPI, and the respective MLCs in India, Singapore, Indonesia, and Thailand, working with BMAT, have designed, and delivered the industry’s first shared, cloud-based software that serves as a complete, cost-effective back-office distribution system for revenue collected for the broadcasting and public performance of sound recordings and karaoke videos in these countries.
MLCs license the use of music for public performance and broadcast and distribute the license fees back to the right holders they represent. They need sophisticated IT systems that enable them to do this accurately and efficiently. Such systems can however be costly to develop and the unprecedented collaboration saved these MLCs from having to each build their own systems.
IFPI and the four MLCs partnered with the music technology company BMAT to develop SoundSys, which uses their proprietary state of the art technologies to organise, store and match usage and recording data, enabling MLCs to distribute royalties in a timely and cost-efficient manner, in line with global best practice.
The development of SoundSys follows the launch of the repertoire data exchange service, RDx, by IFPI and World Independent Network (WIN) last year, which enables record companies to exchange authoritative data with MLCs through a single, centralised hub. The roll-out of both systems globally will provide a standardised, high quality recording metadata supply pipeline and data processing capability for MLCs that will significantly improve the performance rights management landscape worldwide.
Frances Moore, Chief Executive of IFPI, said: “SoundSys is truly transformative. It results from unprecedented cooperation internationally while exemplifying the strength and professionalism of the music industry in Asia to harness cutting edge music technology and deliver a globally significant advancement.”
“We have launched in Asia in close collaboration with the MLCs that have helped shape and refine the system. It’s proving to be highly effective in assisting the operations of MLCs and we will now be looking to roll it out in other regions that can benefit most from the software.”
Orsi Bozso, SoundSys Project Manager at BMAT, said: “After years of tracking and data-processing next to all music industry players and gaining expertise on the challenges they face, it was a natural next step for us to develop a software that could upgrade copyright management operations.
“IFPI’s expert vision and being in sync with the four MLCs allowed us to use our technology to revamp the way MLCs distribute – bringing transparency, accuracy and reliability to the process.
“It’s been a true pleasure to collaborate with IFPI and the MLCs involved on this journey to compensating creators more efficiently.”
Jusak Sutiono, Director of Indonesian music licensing company, ASIRINDO said: “We are already greatly benefitting from the use of SoundSys in Indonesia. The SoundSys matching process is helping us to ensure we accurately identify the music content we are allocating revenues to, with the software improving the speed with which we can then process the revenue and distribute it to our right holder community.”
Chayapach Sangtabtim, General Manager, PNR (Phonorights) music licensing company in Thailand said: “SoundSys is the result of a truly successful collaboration between MLCs in Asia and IFPI. By combining our knowledge and practical experience, we have created a product that has directly improved our operations in Thailand.
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About the Music Licensing Companies
IFPI is the organisation that promotes the interests of the international recording industry worldwide. IFPI and its National Group network has over 8,000 members across more than 70 countries. There are over 70 IFPI offices, National Groups and Affiliated MLCs. IFPI’s mission is to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate.
BMAT is a music innovation company with a mission to index all music usage and ownership data. They are experts in monitoring and reporting music globally across TVs, radios, venues and digital to help all different companies in the music industry better their data operations and help artists get paid for their plays. Every day BMAT delivers 80 million identifications and 27 billion matches to CMOs, publishers, record labels, broadcasters and DSPs.
For SoundSys related enquiries please contact: email@example.com.
24 September 2019 – IFPI, the organisation that represents the recorded music industry worldwide, today released the Music Listening 2019 report, which examines the ways in which music consumers aged 16 – 64 engage with recorded music across 21 countries.
- Music listening is up. Respondents typically spend 18 hours per week listening to music – up from 17.8 hours in 2018. This equates to about 2.6 hours – or the equivalent of listening to 52 three-minute songs – daily.
- Most people (54%) identify as ‘loving’ or being ‘fanatical’ about music. Among 16 – 24-year-olds, this rises to 63%.
- Older age groups increasingly embrace audio streaming services. Engagement with audio streaming globally is strong, with 64% of all respondents accessing a music streaming service in the past month – up by about 7% over 2018. The highest rate of growth for engagement is in the 35 – 64-year-old age group, with 54% of that group accessing a music streaming service in the past month (+8% on 2018).
- Copyright infringement remains a challenge for the music ecosystem. 27% of all surveyed used unlicensed methods to listen to or obtain music in the past month, while 23% used illegal stream ripping services – the leading form of music piracy.
Frances Moore, chief executive of IFPI, said: “This year’s report tells an exciting story of how fans are increasingly engaging with music. At a time when multiple forms of media vie for fans’ attention, they are not only choosing to spend more of their time listening to – and engaging with – music but they are doing so in increasingly diverse ways.
“The enduring partnership between record companies and artists is the bedrock on which this growing, exciting global world of passionate music listeners is built. Record companies work with their artists to help connect them with fans around the world.
“The report also highlights that the availability of music through unlicensed methods, or copyright infringement, remains a real threat to the music ecosystem. Practices such as stream ripping are still prevalent and return nothing to those who create and invest in music. We continue to coordinate world-wide action to address this.”
The full report is available at https://www.ifpi.org/downloads/Music-Listening-2019.pdf
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