The global music industry has suffered greatly from the ongoing pandemic. The recorded music industry has seen growth thanks to digital streaming platforms.
LLike many other industries, the global music industry is also suffering from the ongoing pandemic that began in 2020. The International Federation of the Phonographic Industry (IFPI) lists the largest recorded music markets in the world each year. And according to the IFPI, the global recorded music market saw a growth rate of 7.4% in 2020. This is the sixth consecutive year of growth. For industry. According to the Global Music Report published by IFPI, total revenue in 2020 was US$21.6 billion.
How are the rankings determined?
Market rankings are determined by retail value, not units. The retail value of the markets differs each year. As financial data is provided in US dollars, all music markets except the US market are highly dependent on exchange rate fluctuations and revenue variations in local currency terms.
How are streaming services contributing to growth?
The recorded music industry has seen substantial growth despite the outbreak solely thanks to the various streaming services. While the sale of physical copies of music has declined due to the pandemic, the use of online music streaming services has increased dramatically. Physical music revenue decreased by 4.7% and performing rights revenue also decreased by 10.1% due to Covid-19. Current growth has been driven by paid subscription streaming revenue. It grew at an incredible rate of 18.5%. at the end of 2020, there were a total of 443 million users with paid subscriptions. The total streaming rate, whether paid subscription or free and ad-supported, increased by almost 19.9%. Revenues also rose by 62.1% of the worldwide recorded music total, or $13.4 billion.
Record labels have dedicated and invested a lot in the growth of the digital industry, which has proven to be beneficial in countering the extraordinary situation that has occurred in 2020. The year has been a very difficult time for musicians . Record labels have offered incredible support to their partner artists in creating and recording new music. The entire industry has been striving to make new innovations to provide fans around the world with a better music listening experience.
The point of view of the Director General of the IFPI
The current Director General of IFPI said that as the world struggles to fight the Covid-19 pandemic, people remember the enduring power of music to console, heal and spirit humanity. He says the power of a great song or the relationship between musicians and audiences is timeless. While the whole world was locked down, fans couldn’t enjoy the live performances. Streaming services have come to the rescue by offering their quality music listening experience through these platforms.
Record labels continually invest in artists and their music. They are also making innovative efforts to bring their music to fans in new ways. With the support of streaming platforms and their paid subscription streaming, the global recorded music industry saw revenue growth for the sixth consecutive year. Record labels are now focused on expanding their reach by challenging all geographic and cultural boundaries. With streaming platforms, music has become more connected than ever and this growth has been seen around the world.
Record labels strive to make a meaningful and lasting contribution to the world by helping the music industry thrive.
Growth in various music markets around the world
- The American and Canadian market. The United States is still the largest market for recorded music worldwide. The recording music industry experienced a growth rate of 7.4% in the US and Canada region in 2020. Individually, the US market grew by 7.3% and the Canadian market grew by experienced revenue growth of 8.1%. during the year.
- The Latin American market. It has become the fastest growing recorded music market in the world today. There was only a growth of 15.9% in 2020. Streaming revenue in the region increased by 30.2%, accounting for 84.1% of the region’s total revenue.
- Asian market. The Asian recorded music market grew by 9.5% as revenue from streaming platforms surpassed the 50% share of total revenue for the entire region. As an exception, Japan experienced a 2.1% decline in recorded music industry revenue. Asia might have been the fastest growing region in the world if it weren’t for the decline of the Japanese music scene.
- The Africa and Middle East market. Revenues from recorded music in these two markets increased by 8.4%. Growth was driven primarily by the North Africa and Middle East regions. Revenue from streaming platforms increased by 36.4%.
- European market. The second-largest recorded music market saw revenue growth of 3.5% and streaming 20.7% in 2020.
Alicia Parker is a fashion enthusiast studying at the University of California. She contributes to Daily Music Roll as a music blogger and writes a review of various music daily.