Around 80% of live revenue comes directly from ticket sales, while brand sponsorships and merchandise generate another 20%. The headline is that global recorded music revenues (so, not including publishing or live music) grew by 11.4% to $21.5bn. This is the definitive source of revenue data for the recorded music industry in the United States. The global recorded music industry continued its resurgence in 2019 with a fifth successive year of growth. DOWNLOAD THE FULL REPORT HERE. 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. 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 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. ", Kerrang! 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).”. It claimed that recorded music revenues grew by 11.4% to $21.5bn in 2019, with streaming up by 24% to $11.9bn. Streaming made up nearly 80% of total revenues as the music industry has transformed to a digital-first business. 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. I could go on. Total 2019 revenues of $11.1 billion were up 13% versus $9.8 billion the prior year. 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. 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. The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth. "This is something the industry needs to address, and fast, or the periphery value of music faces a potentially sharp decline. According to a new study from Pricewaterhouse Coopers (PwC), the live concert industry will experience significant growth during the next few years. Creators need a new model; we're using old world splits in a new world market. The global recorded music market grew by 9.7% in 2018, the fourth consecutive year of growth. We live in a streaming society. "Remember there is no such thing as promotion these days, there is nothing to promote, everything is a distribution. But growth in streaming is slowing down, leading to … "Arguably this demonstrates the migration of listeners towards streaming and away from terrestrial broadcast. It is estimated that it will double in size within ten years, driven primarily by the growth in streaming. 2 The UK Total revenues of the music industry are estimated at $7 billion, generated by 3 main sub-industries: live, recording and publishing. 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). 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? 4 Live music Introduction 1. Retail sales in every sector of the music industry are declining except for online streaming music and live music. By contrast, in 2019 the top 1% now commands a whopping 60% of revenue. More on the 2019 numbers from RIAA Chairman & CEO Mitch Glazier here. 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. The industry … ", This "age of promotion" places entirely new pressures on artists and performers, explains Hunt. 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. That's the fourth consecutive year of growth, according to the recorded music industry trade group IFPI's Global Music Report 2019. Hunter S. Thompson. And that’s the only news that matters when it comes to revenue for the music industry in the United States. In 1982, 26% of all concert revenue from ticket sales went to the top 1% of performers. The performance of the recorded music business in 2019 is going to heat up interest even further. "Unfortunately for many artists and songwriters, it doesn't feel like the time to celebrate just yet. Here are the ways this technology is impacting fans and artists in 2019. Discover all 2019 music industry trends in the brand-new Midem News Magazine. In fact, figures estimate the latter might record around $11.06 billion in revenue this year, which is surprising when compared to 2014’s $9.06 billion and streaming’s $ 3.66 billion. 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 ten highest-grossing global tours in 2018 each had ticket sales that exceeded $100m. Of course, the two are now happily intertwined, with streaming often propelling … All Rights Reserved, This is a BETA experience. ", I have worked in music and technology since the '90s and shared my related musings in places like The Guardian and CNN. Put simply: it’s time to get personal with consumers, or be left out of the conversation.”. 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. The average ticket price in 2012 was $85.93, or $20 more than it was just three years before. Live concert ticket sales grew by 12% in 2018! Do not listen to the prognosticators, including me, if they tell you X is dying or Y is the future. 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. Additionally, in 2019, the music industry posted a 32.9% growth in paid streaming revenue. 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. 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. As the latest figures indicate, the majority of the streaming revenue is received/generated by fewer and fewer artists, so something about the current model is failing the next generation of musicians.". 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”. 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. Since 2006, worldwide music industry revenues have been more than $60 billion each year. Let's connect! Most creators depend on broadcast revenue to subsidize their living and recording advances. 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