I could go on. Opinions expressed by Forbes Contributors are their own. Streaming Comprises 75% Of Music Industry Revenues - 03/04/2019 The RIAA report found revenue from streaming platforms reached $7.4 billion in 2018 -- the majority of industry revenues. Live concert ticket sales grew by 12% in 2018! And that’s the only news that matters when it comes to revenue for the music industry in the United States. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation with Forbes Insights, most musicians are swimming upstream while the labels are coasting down it, People only want to see REM so many times before they look to Fortnite for their entertainment. At the same time, all E&M players must take the need to ‘know your customer’ more seriously, and marketers need to allocate their time and attention to new types of content and platforms – influencers, live events, ads inside apps and more. Live Music Trends. Global revenues grew by 11.4% in 2019 to reach $21.5 billion, an increase of $2.2 billion on 2018. The 2019 edition has just been released and it brings you the latest music industry trends. Individual 2019 and 2023 figures for all major live music markets are available in the International Ticketing Yearbook 2019, out now. IQ is the leading global news platform for the live music business. The Global Entertainment & Media Outlook 2019–2023, the just-released 2019 update to the consulting firm’s respected annual Outlook report, finds live music ticket sales will increase at a compound annual growth rate (CAGR) of 3.33% from 2018 to 2023, from $21.256bn (projected) in 2018 to … It is so important that people support live music. While she extols the virtues of Spotify as "a massive platform, accessible worldwide instantly" she is also candid about the lack of revenue from recordings, particularly after record label deductions. Overall, the industry had a 34% growth in total streaming revenue. Whether taking the form of an instantly sold-out reunion concert or a Spotify playlist, streaming now accounts for 75 percent of the music industry’s revenue. More on the 2019 numbers from RIAA Chairman & CEO Mitch Glazier here. 3 Key Facts About the Live Music Industry. We are seeing exciting new artists like Sam Fender, Dave and Little Simz achieve great success and the figures in this report are testament to the outstanding creativity of our world-leading artists. "In reality, bands need 1,500 punters per night to sustain four musicians. The Global Entertainment & Media Outlook 2019–2023, the just-released 2019 update to the consulting firm’s respected annual Outlook report, finds live music ticket sales will increase at a compound annual growth rate (CAGR) of 3.33% from 2018 to 2023, from $21.256bn (projected) in 2018 to $25.036bn in 2023. “It will hasten existing trends towards personalisation, making it easier, more convenient and cheaper to access more media on phones and other mobile devices. Hunt is clear on the danger of doing nothing. The numbers for 2018 show that the industry is continuing on the growth path that started in … ", Millennial musicians have different reference points but can see the same issues. The global recorded music industry’s streaming revenue has grown steadily from $1 billion in 2012 to $8.9 billion in 2018. Music streaming, we’re told, is how everyone gets their music. Year-over-year growth of 31% brought total subscription revenues … It’s the fastest-growing economy out of the top-10, projected 7% CAGR up until 2023.This almost unprecedented economic growth is powered by the population of 1,35 billion people, which keeps on rising — India is expected to … The RIAA released its semiannual compilation of recorded music revenues this week. Indian Music Industry Stats: India's Digital Revolution By the Numbers. Crispin Hunt suggests a solution through a renegotiation of the royalty splits between the streaming platforms and music publishers. Employment in the UK music industry was a record 197,168 at the end of 2019. By Music Industry Insights on January 24, 2019. The numbers kept … Continue reading Revenue of the live music industry → The performance of the recorded music business in 2019 is going to heat up interest even further. Artists earn revenue from touring and gain royalties from performances in larger venues which pay out more than smaller ones. Now that the "valley of death" has been traversed by technological innovation, are the benefits of this newfound growth reaching the bedrock of the business, the performers and songwriters themselves? International Live Music Conference (ILMC), Music + Rugby to bring live music to UK stadia, UMG to produce virtual-reality live music, Content overload leads to live music boom, Australians prefer films to live music: study, Live Nation launches event production company. For more in-depth analysis of 2019 data and trends, please see our “2019 RIAA Shipment & Revenue Statistics. ", Kerrang! But will the industry re-engineer how it shares the spoils of its economic renaissance? It also means that the Australian music industry has enjoyed 5 yearsof consecutive growth between 2015 and 2019 – the last time this happened was between 1995 and 1999. The global recorded music industry continued its resurgence in 2019 with a fifth successive year of growth. IQ Magazine uses cookies to give users the best experience on our website. Nella is today an in-demand songwriter and performer, collaborating with Emmy and Grammy award-winning artists, and regularly touring China where the venues will typically hold upwards of 10,000 fans. In Europe, creators get a larger share of broadcast revenues than streaming revenue, so this is a worrying trend. Hunter S. Thompson. With constant rumors of streaming services looking to cut royalty rates to rights holders, in order to increase margins, many artists yet again feel like they are at the bottom of the pile." Calvin Harris was the best remunerated, with the artist earning around $50m, ahead of US duo The Chainsmokers ($45m) and Dutch DJ/producer Tiësto ($33m).”. Calvin Harris was the best remunerated, with the artist earning around $50m, ahead of US duo The Chainsmokers ($45m) and Dutch DJ/producer Tiësto ($33m).”, “5G will ienable more streaming of high-quality video, including of live events like sports and music”. Like Crispin Hunt, he is reticent to celebrate the upturn in the industry's fortunes prematurely. Hunt unearths further evidence of economic stratification in recent figures from the International Federation of the Phonographic Industry (IFPI). 2 The UK © 2020 International Live Music Conference Ltd, lectronic dance music (EDM) events again drew large and lucrative crowds, and EDM DJs were paid accordingly. Here are the ways this technology is impacting fans and artists in 2019. The live music sector enjoyed a record year in 2019, contributing £1.3 billion to the UK economy ­– up 17% on its £1.1bn contribution the previous year, according to UK Music’s Music By Numbers 2020 report. Global revenues grew by 11.4% in 2019 to reach $21.5 billion, an … You may opt-out by. Self-releasing Casey achieved over two million streams without a label or a team. All Rights Reserved, This is a BETA experience. The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. The annual revenue of the Australian recorded music industry currently sits over $555 million, with this figure being 5.5% up on the revenue posted by the industry in 2018. The IQ family also includes ILMC, the live music industry’s top international conference event, and the International Festival Forum (IFF). In 2018, India became the 5th biggest economy in the world in terms of the current GDP. The U.S. recorded music business generated $11.1 billion in revenue in 2019, according to the RIAA's annual year-end report, a 13% year-over-year increase from the $9.8 billion it reached in 2018. I'd like to hear about marketing opportunities, I accept IQ Magazine's Terms and Conditions and Privacy Policy, Live music will continue its more than decade-long boom through 2023, though a streaming-reinvigorated recorded sector is nipping at its heels, finds PwC's Outlook 2019, Ed Sheeran's ÷ became the highest-grossing concert tour ever in August, image © Ed Sheeran (@teddysphotos)/Instagram. For more in-depth analysis of 2019 data and trends, please see our “2019 RIAA Shipment & Revenue Statistics. Between 2014 and 2015, there was an increase in expenditure in the US by a … “All regions demonstrated rising consumer demand for subscription [music streaming] services in 2018, as well as ad-supported free tiers, and there is little sign that the market will run out of steam in the near future,” they add. You will receive a link to reset your password. And how you get to 1,500 punters per night is the question nowadays. "Unfortunately for many artists and songwriters, it doesn't feel like the time to celebrate just yet. And in just a few years, streaming has now become an integral part of the industry. Usually, the artist gave up a lot to the label, often in deals that were less than fair, and this kept the majority of artists in poverty over the long term. I write about great music, mobile-centric tech and related trends. Think about how much upfront investment, most likely from a label, would be needed to reach that many people. The live music and entertainment sector underwent significant changes and consolidation in 2019 - even before the onset of COVID-19 and its devastating impact on this part of the industry. Irish vocalist Nella is best known for her performance in the 14 million-selling MMORPG World Of Warcraft. That means Midia is estimating $1.3bn more global revenues in 2019 than the IFPI is reporting, with Midia’s total including $873m of ‘artists direct’ revenue – for artists without labels. 1. Total revenues of the music industry are estimated at $7 billion, generated by 3 main sub-industries: live, recording and publishing. Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news. Like many issues, it depends on who you ask. This includes ticket… Read More The value is no longer in the piece of plastic that used to trap music, it's in the idea: you're a digital Luddite to think otherwise. ", I have worked in music and technology since the '90s and shared my related musings in places like The Guardian and CNN. As a result, most musicians are swimming upstream while the labels are coasting down it . DOWNLOAD THE FULL REPORT HERE. Live Nation gained ground in the third quarter covering June to September, its revenue of $184 million was 95.1% below $3.77 billion in the prior year period’s revenue. But growth in streaming is slowing down, leading to … Paid subscriptions alone made up 62% of overall industry revenues, and they accounted for 77% of U.S. streaming music revenues for the first half of 2019. Please enter your email address below. The fact is this, there is no one way to do it today. Indeed, as more consumers gravitate to a smaller number of superstars, the middle has dropped out of music, wrote Rockonomics author and Princeton economist, the late Alan Krueger. As for live music, consultancy firm PwC has predicted that live music will have generated $27.9bn in 2019, including just over $22bn from ticket sales and the rest from sponsorships. Get exciting news, exclusive insights through leaders’ interviews, and much more! The industry … “As in previous years, veteran acts pulled in huge audiences too. Since 2006, worldwide music industry revenues have been more than $60 billion each year. Additionally, in 2019, the music industry posted a 32.9% growth in paid streaming revenue. In total, the American music industry’s 2019 retail revenue was about $11.1 billion, up from $9.8 billion in 2018 and $8.8 billion in 2017. There's also a negative side." With the triumph of streaming comes the continued downfall of digital downloads and physical sales, which only made up 10% and 8% of revenue … 2 The UK Global music sales grew for the fourth consecutive year in 2018 with streaming now accounting for almost half of all label revenue, according to the International Federation of … Retail sales in every sector of the music industry are declining except for online streaming music and live music. 4 Live music Introduction 1. Income from live concerts has arguably never been as important; performers generate around 75% of their income from live events and tours today, compared to less than one third in the '90s. ", It looks like the majority of musicians livelihoods are at risk of diminishing further, while the public's increasing focus on the top 1% will only exacerbate the issue. Streaming music revenue will grow to slightly over $23 billion by 2022. The new venture by Music + Sport, also behind Cricket Live and The Jockey Club Live, will launch with Jess Glynne at Kingsholm Stadium in June, A partnership with radio giant iHeartMedia will see live performances by four Universal artists shot in VR, The global live industry will grow at a rate of 3% for the next five years, PwC predicts, as an "increasing premium" is placed on live events, Following the acquisition of Openair Frauenfeld and the launch of TM Switzerland, the US concert colossus has deepened its involvement in the thriving Swiss market, Research from the Australia Council reveals live music is better-attended than galleries and performing arts shows – but less popular than the cinema, Live Nation has partnered with Ford Englerth's Redrock group for Redrock Entertainment Services, a new production company with global ambitions. People who have been in the industry for many years are well placed to compare today's income streams with the halcyon days of recorded music sales. ", However, Hunt is less optimistic when analyzing what these current trends mean for the sustainability of the business. ", This "age of promotion" places entirely new pressures on artists and performers, explains Hunt. "This is something the industry needs to address, and fast, or the periphery value of music faces a potentially sharp decline. "The huge streaming companies need to be paid, investors need returns, and new shareholders need to see a route to profit as all are still loss-making. This is the definitive source of revenue data for the recorded music industry in the United States. IQ publishes a regular magazine, several annual reports, and a daily news digest, IQ Index. Streaming represented 80% of recorded music industry revenue in 2019, according to a new report from the Recording Industry Association of America By Ethan Millman But squeezing margins could kill the very ecosystem the fragile sector relies upon to fuel creativity and generate new product. “Marketers need to allocate their time and attention to new types of content and platforms – influencers, live events, ads inside apps and more”, “The global esports market might still be emerging in most territories but is beginning to generate noteworthy revenue,” reads PwC’s commentary, “and those countries which are moving towards maturity show a clear path to further profitability. ", Hunt states that a seismic change has occurred, and the industry as it was known simply doesn't exist anymore. Crispin Hunt, chair of the prestigious Ivors Academy (formerly known as BASCA), is hugely positive about the rise in music revenues. The 2020-2024 Australian Entertainment and Media Outlook recorded Australia’s total music market at $1.82 billion last year, and is expected to rise to $2.32 in 2024. I also host conferences in every corner of the world, sit on some incredible advisory boards, and enjoy DJing, making mixtapes and composing soundtracks. ", Recording artists are at the heart of the music industry's core product, and their output is pivotal to ensuring its future. The gross revenue from live music tour performances reached 5.55 billion U.S. dollars in 2019, up slightly from the year before and significantly higher than the figure recorded back in 2012. "While two million streams pays less than two million CD sales, think of how much it used to cost to advertise to an audience of hundreds of millions so that a small percentage of them would actually listen and buy your music. I'm not convinced that rinsing the artists and rights holders is ever the right answer. Income from live concerts has arguably never been as important; performers generate around 75% of their income from live events and tours today, compared to less than one third in the '90s. Think about that for a second. "There is no real money in the recorded side of life for artists anymore - the money is in touring and performing, and merchandise at shows. However, restrictions on live music due to the coronavirus pandemic remain a hurdle to the sector’s recovery. Also booming are podcasts, with the value of podcast advertising set to grow a remarkable 28.5%, to $3.2bn, in 2023, according to the Outlook 2019, and esports, which has a CAGR of 18.3%. Streaming has provided some compensation for the music market amid COVID-19, and it is now the largest driver of industry revenues. Eagles had a 2018 gross of US$166m, while Roger Waters, U2 and the Rolling Stones all performed well. Paid subscriptions continued to be the biggest source of revenue for recorded music. “That growth was bigger than 2018 in both absolute and relative terms. The mob-laden expose of the music promotions business, Hit Men by Fredric Dannen, went even further, painting an industry vignette closer to The Sopranos than The Supremes. It is estimated that it will double in size within ten years, driven primarily by the growth in streaming. Another staggering statistic is that the revenue from music streaming in 2019 alone was higher than the industry’s total revenue from all channels in 2017. Bruce Springsteen, Guns N’ Roses and Phil Collins also brought in large totals on their respective world tours.”, PwC’s analysts also highlighted success in the dance music sector, noting that “electronic dance music (EDM) events again drew large and lucrative crowds, and EDM DJs were paid accordingly. The live music sector contributed £1.1 billion (US$1.42bn/€1.28bn) to the British economy in 2018 – a 10% year-on-year increase – according to UK Music’s inaugural Music by Numbers report. The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth. So effectively this revenue also subsidizes the music industry, as advances would need to be twice as large to actually cover musicians' cost of living. Drawing primarily on Citi and PwC estimations, the total revenue of the live industry can be put at around $9,5 billion. "Remember there is no such thing as promotion these days, there is nothing to promote, everything is a distribution. A spotlight on the thriving concerts, festivals and live branded activations. While he is realistic about the fall in revenues from sales, he focusses on the positive opportunities for artists who embrace streaming. Everyone has the chance to make a hit." If the Outlook 2019 has one overarching theme, it’s that of personalisation: the need for entertainment businesses to recognise that consumers are “moving to the centre of their own world of media experiences”, in the words of Ennèl van Eeden, global entertainment and media leader and partner at PwC Netherlands, and pitching their content – be it an album, a videogame or a concert tour – “not at audiences of billions, but at billions of individuals”. Most creators depend on broadcast revenue to subsidize their living and recording advances. That doesn't happen from being on the early morning coffee playlist. Nor does it happen from millions of views on YouTube. That is without taking into account the further growth that will come from fixing the problems of free music (whether through YouTube, Vevo or piracy) and without taking into account the extraordinary potential of China. IQ’s news, features, information and analysis is read by 100,000 professionals worldwide each month. It is important to note that the information presented in this page only accounts for revenue generated from the recorded music industry (recorded music and auxiliary revenues generated by these recordings), and is not reflective of the entirety of the music industry including sectors such as publishing, live music… The annual revenue of the Australian recorded music industry currently sits over $555 million,with this figure being 5.5%up on the revenue posted by the industry in 2018. However, the business has undergone a significant transformation over the last decade, recovering from its evisceration by file-sharing thanks largely to the ascendance of streaming. Live music revenue is projected to decline by 90% in 2020, according to a new report by PwC.. award-winning musician Adam Perry co-founded the band A and toured with The Bloodhound Gang. The global enterprise of recorded music is now making a convincing comeback, as evidenced by the latest figures from the PRS/MCPS, and Spotify recently breaking through the 100 million paying subscribers mark. People only want to see REM so many times before they look to Fortnite for their entertainment . The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth. This is the definitive source of revenue data for the recorded music industry in the United States. […] Esports is the fastest-growing sector of the video games market by some distance, and is expected to pass the US$1.8bn revenue in 2023.”. “The implications for organisations are profound. Of course, the two are now happily intertwined, with streaming often propelling … "Record labels have managed to secure between 50%-70% of digital services' income, while the publishing sector has agreed to receive much less, with rates ranging between 12% and 15% for subscription services. The headline is that global recorded music revenues (so, not including publishing or live music) grew by 11.4% to $21.5bn. Wilson Chow, global technology, media and telecommunications leader and partner at PwC China, highlights the impending 5G roll-out as one trend to keep an eye on, saying the widespread availability of high-speed mobile internet could lead to increased take-up of concert livestreams and virtual-reality (VR) content. The performance of the recorded music business in 2019 is going to heat up interest even further. In 1982, 26% of all concert revenue from ticket sales went to the top 1% of performers. Global revenue growth 46.9% Streaming share of global revenues +34.0% Growth in overall streaming revenues -10.1% Physical revenue decline-21.2% Download revenue ... IFPI GLOBAL MUSIC REPORT 2019 STATE OF THE INDUSTRY GLOBAL CHARTS 11. Streaming revenue grew by 34.0% and accounted for almost half (47%) of global revenue, driven by a 32.9% increase in paid subscription streaming. Creators need a new model; we're using old world splits in a new world market. In 2017, 29.1 million people attended concerts and festivals in the UK, a c.17% increase on the previous year. report reveals the industry is worth an amazing £5.2 billion to the economy and the live music sector is breaking the £1 billion barrier. So, what is the “State of the Music Industry in 2019?” Murky. So, musicians need a suite of income streams. Over 90% of all live and recording revenues come from domestic acts, while publishing is considered the most foreigner-friendly part of the industry with 20-25% of revenues generated by international artists. The industry’s total worldwide annual streaming revenue haul ($11.4bn) in 2019 was up by $2.2bn on the same figure from 2018 ($9.2bn), which in turn was up by $2.7bn on 2017 ($6.5bn). This disparity of revenue distribution prompted the Wall Street Journal to recently declare that "Music Superstars Are the New One Percenters. It also means that the Australian music industry has enjoyed 5 years of consecutive growth between 2015 and 2019 - the last time this happened was between 1995 and 1999. In 2019, market research firm IBISWorld’s Concert & Event Promotion in the U.S. report predicted that the concert industry’s total revenue will rise 1.9 percent annually through 2024, ultimately hitting $36.6 billion that year. Perry, also the founder of the BandApp platform, is pragmatic about the business imperatives of the streaming services, but advises them to be mindful of the source of their revenues. The 2019 edition has just been released and it brings you the latest music industry trends. "The recorded music business is already in a period of unprecedented growth. Taylor Swift’s 36-stop global trip amassed US$345m in tickets sales, while a combined Beyoncé and Jay-Z managed to rack up almost US$255m. Before the Covid-19 pandemic struck, the UK music industry contributed £5.8bn to the UK economy in 2019, according to the Music By Numbers study published by UK Music. AEG Presents bought a 50 percent stake in Michael Gudinski’s Frontier Touring Company and, separately, Michael Chugg’s Chugg Entertainment forming a joint venture with Frontier. – Now the IFPI report is out, we can compare its official figures with the unofficial ones published by research firm Midia Research in early March. The global recorded music market was up 9.7% in 2018. A testament to this is the amount of revenue the industry makes from streaming. The RIAA provides the most comprehensive data on U.S. recorded music revenues and shipments dating all the way back to 1973. According to data (published at Statista.com) on the revenues of the live music industry in the U.S., live music tickets sales generated $6.78 billion in 2012 — since then, the numbers have continued only to grow.In 2013, sales of live music tickets amounted to $6.88 billion. By contrast, in 2019 the top 1% now commands a whopping 60% of … "Arguably this demonstrates the migration of listeners towards streaming and away from terrestrial broadcast. The overall value of the Finnish music industry is based mainly on reports published by umbrella organisations in the industry. 1 Moreover, the live music industry generated almost £1 billion Gross Value Added (GVA) for the UK economy and employed more than 28,000 people. The latest RIAA music industry revenue numbers show continued growth and continued dominance of interactive streaming. The average ticket price in 2012 was $85.93, or $20 more than it was just three years before. The RIAA provides the most comprehensive data on U.S. recorded music revenues and shipments dating all the way back to 1973. Global Recorded Music Industry Revenues 2001-2018 (US$ Billions) Global Recorded Music Revenues by Segment 2018 Top Ten Music Markets 2018 ↑9.7% global recorded music market growth 58.9% digital music share of global revenue 255m users of paid subscription accounts 4 Live music Introduction 1. At the end of 2017, live-industry trade-media platform Pollstar calculated that the 100 biggest concert tours that year collectively grossed $5.65bn in … We live in a streaming society. In 2013, sales of live music tickets amounted to $6.88 billion. In 2017, 29.1 million people attended concerts and festivals in the UK, a c.17% increase on the previous year. Streaming made up nearly 80% of total revenues as the music industry has transformed to a digital-first business. The value of ticket sales for live music events will exceed US$25 billion for the first time in 2023 – with total industry revenues set to reach a record $31.5m the same year, reveal the latest PricewaterhouseCoopers (PwC) figures.