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Music Revenues Topped $20 Billion in 2019, but Growth Was Slowing – Variety

With the devastating affect of the coronavirus pandemic on the worldwide financial system, any look again at 2019 monetary efficiency looks like an train in nostalgia, but the info launched by the Worldwide Federation of the Phonographic Trade on Monday reveals that the streaming increase’s affect on recorded-music revenues was already beginning to degree off.

For 2019, whole revenues for the worldwide recorded-music enterprise grew by 8.2% to $20.2 billion, with streaming income rising 22.9% to $11.Four billion — accounting for greater than half of whole income for the primary time, at 56%. Bodily gross sales continued their lengthy decline, but at a slower fee — 5.3% — than in 2018.

The expansion was powered by a 24.1% enhance in paid subscription streaming with practically all markets reporting progress. There have been 341 million customers of paid streaming providers on the finish of 2019 — up 33.5% —  with paid streaming accounting for 42% of whole recorded music income.

Taylor Swift was the world’s top-selling artist for the yr, as introduced by the IFPI in March.

Nevertheless, as famous by Music Enterprise Worldwide, streaming income was up $2.2 billion over 2018 (from $9.2 billion to $11.Four billion), whereas the earlier yr noticed a $2.7 billion soar (from $6.5 billion to $9.2 billion) — a $500 million drop.

Growth in general revenues additionally slowed from $1.7 billion in 2018 to $1.5 billion in 2019.

Thus, at the same time as estimates of the worth of the worldwide music business soared over the previous three years — with the world’s largest music firm, Common Music, being valued at $33 billion as a part of its sale of 10% to Tencent final yr — the streaming-powered surge had begun to chill off, at the same time as the most important labels expanded into newer markets in Asia and Africa. It appears that evidently cooldown will inevitably proceed, regardless that, as Spotify famous in its current earnings report, streaming and recorded music are much less inclined to the devastating affect the pandemic has had on the live-entertainment enterprise.

“The World Music Report we issued at this time covers outcomes for 2019 and displays the profitable work and funding of music creators – from document firms to artists and past. Importantly, the robust basis we constructed over the previous a number of years helped ship progress in 2019,” stated Frances Moore, chief government of IFPI, in an announcement accompanying the report.

“Whereas the numbers we’re reporting are a snapshot of the enterprise final yr, the COVID-19 pandemic presents challenges unimaginable simply months in the past. Within the face of a worldwide tragedy, the music group has united behind efforts to help these affected.  This can be a crucial and ongoing precedence as our member document firms work to proceed to help the careers of artists, musicians and workers world wide.”

2019 Regional Highlights, per IFPI, embody:

For the fifth consecutive yr, Latin America was the fastest-growing area (+18.9%) with its three largest markets rising strongly: Brazil (+13.1%); Mexico (+17.1%); and Argentina (+40.9%).

Europe, the world’s second-largest area, grew 7.2% – after being virtually flat in 2018 – with UK (+7.2%), Germany (+5.1%), Italy (+8.2%) and Spain (+16.3%) reporting robust progress.

Asia noticed general progress of three.4%, a slower fee of progress than 2018, but this was largely resulting from Japan (-0.9%), which noticed a decline in bodily gross sales (-4.8%), its dominant format. Elsewhere in the area, South Korea, China and India all skilled robust progress, (8.2% 16.0% and 18.7% respectively).

Australasia grew by 7.1% with general digital revenues rising 11.6% and bodily format revenues falling 20.4%. Australia, a high 10 market, recorded progress of 6.0% with neighbouring New Zealand posting a rise of 13.7%.

US & Canada grew by 10.4%, remaining the biggest area for recorded music revenues, accounting for 39.1% of the worldwide market. The US grew by 10.5%, its fifth consecutive yr of progress. Canada, which was largely flat the prior yr, elevated by 8.1%.

 

 

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