MBW’s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stats for the week powered by Music group Cinqa technology-based record label, distribution and rights management company.
The global recorded music industry led by streaming may be resilient to macroeconomic uncertainties, but it’s certainly not immune.
That’s the key takeaway from a new report by Midia Research, which estimates the dramatic drop in music growth recorded last year.
According to a report published on Thursday (March 16), recorded music sales globally only increased 6.7%annual in 2022 reach U.S. dollar$31.2 billion.
Midia notes that its estimates, given days before the record industry body’s release IFPIMidia’s official annual global music report marks a significant drop in growth compared to Midia’s estimates. 24.8%annual growth for 2021 (compared to 2020).
That thing 6.7% Growth estimates for 2022 are also significantly reduced by IFPI separate growth numbers for 2021, reported last March as increasing 18.5% compared to 2020. IFPI reported that global recorded music sales reached 25.9 billion USD in 2021.
(Midia says it includes self-published artists and production libraries in its estimates, and also includes studios’ merchandise and expansion rights.)
Comment on Midia’s estimates for 2022 in a blog post on Thursday, Midia CEO Mark Mulligan noted that 2022 “is a year of reorganization for much of the global economy, and that the music business is not only facing broad trends of the cost-of-living crisis, but also rising interest rates dampen M+A demand in the music category, and streaming is long expected to slow down.”
However, he said that the global music industry’s “modest” growth in 2022, “is testament to the solidity of the recorded music market, despite this turbulence.”
Mulligan further notes that “the enduring value of music is even more clearly illustrated by music publishing,” which Midia estimates has increased over the years. 16.6% annually in 2022.
As expected, streaming is once again a key driver of growth in the global record industry, with estimated revenue from Midia rising. 8.3% annuallyor by 1.5 billion USDARRIVE 20 billion USD in 2022 (see infographic below).
Midia attributes the slowdown to slowing premium subscriber growth in mature markets and a decline in ad-supported revenue, which the company says reflects the reflects “the dynamism of the broader advertising market”.
According to Midia, music subscriber growth is “noticeably stronger,” according to Midia’s estimates. 13.7% ARRIVE 652 million won globally.
However, it notes that the more mature North America and Europe regions account for “just a third” of annual subscriber growth globally.
Midia’s Mulligan added: “Emerging markets will increasingly become a larger part of global streaming growth, but due to lower ARPU and low Anglo repertoire, the revenue differential increases Subscriber growth and growth rates seen in 2022 will become a long-term market feature.”
Overall, streaming accounts for 64.1% out of all recorded music industry revenue by 2022, Midia said.
UMG increased its annual recorded music sales by 0.5 billion USD by 2022 to reach $9.2 billion, says Midia, giving Universal 29.5% share of the global recorded music market.
According to Midia estimates, UMG’s annual revenue growth as a percentage (+6.2%) in 2022 is slower than that of Sony Music Group (+8.7%), with estimates SMG achieved 0.4 points of global market share.
“Although the overall market growth rate in 2022 has decreased compared to 2021, in many ways, 2021 is a year of artificial growth after the pandemic, while 2022 is on the opposite side of the scale. , with many economic headwinds.”
Mark Mulligan, Midia
Elsewhere in its report, Midia estimates that indie labels and ‘live artists’ (aka DIY artists) both “have outperformed the vast streaming market.” than”. These two areas have grown in streaming revenue year over year 13.9% And 17.9%, corresponding.
Live Artists (i.e. artists releasing without a label, directly through a distributor) are, according to Midia, “a huge success story again”, with their sales growing. 16.6% annually in 2022 to create 1.78 billion USD recorded music revenue.
That gave the ‘live artist’ segment 5.7% global market share, Midia said, up from 5.2% in 2021.
Midia says independent labels are also outgrowing the broader market, increasing their recorded music sales by 7.1% annuallyas reported by Midia.
One statistic that stands out: According to Midia’s figures, ‘live artist’ revenue plus independent label revenue stands at around 10.8 billion USD in 2022 – greater than Universal Music Group’s equivalent gross ($9.2 billion).
(Important: Midia clarifies that ‘independent record labels’ in its estimates do not include revenue generated by independent record labels distributed by major record companies. This is included in the sales of major record labels.)
According to Midia estimates, the combined market share of the ‘live artists’ segment and independent labels reaches 34.6% in 2022, up from its estimate 34% in 2021.
However, Midia notes that this does not include additional sales from independent brands distributed by major brands.
Commenting on Midia’s estimates, Mark Mulligan writes in his blog post that although “the overall market growth in 2022 is down from 2021, in many respects 2021 is a year.” artificial growth, post-Covid, while 2022 is on the opposite scale, with a series of economic headwinds.”
In this context, 6.7% growth for 2022 could even be seen as a higher achievement than the 24.8% achieved in 2021, he added.
News of max: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably
