Music Business Worldwide (MBW)’s Post

IFPI's 2023 Global Music Report is out: global music revenues grew by 10.2% to US$28.6bn, driven largely by streaming and despite record labels being paid peanuts by new growth drivers like TikTok. There are now 667m paying customers of streaming services. 🎧 The standout market? China, which grew ~26% - far higher than any other major market, and more than Asia (~15%) as a whole. Looks like good news for Tencent Music (TME; 1698.HK), which has more than 70% of that market (not investment advice!) – and owns a small stake in the world’s largest music company, UMG. Chinese consumers seem to be finding an outlet for their (increasing) savings, now that they are not buying property. Also, what’s an unemployed young person to do? Listen to music all day long! At least for now, music may be somewhat under-the-radar for the state to be taking an active interest in. 🎶 ____________________________________________________________________________ https://lnkd.in/gYCfY7ZH

Discover key insights from our latest research on streaming and A&R, now featured on Music Business Worldwide (MBW). Learn about the impact of platforms like Spotify and SoundCloud in the music industry. Essential reading for professionals! #MusicIndustry #StreamingInsights #Viberate

In 2023, Spain's recorded music industry experienced robust growth, reaching revenue of nearly 520 million euros ($567 million), marking a third consecutive year of double-digit increases. This growth was mainly driven by the digital market, which contributed 86% of music consumption, with streaming services leading at 99% of digital sales. Premium subscription models saw a 15% rise, reflecting consumer willingness to pay for enhanced music experiences. Despite positive trends, the industry aims to surpass pre-piracy-crisis revenue levels through continued investment in artist development and public sector support, as highlighted by PROMUSICAE's president, Antonio Guisasola. #Spain #musicindustry #musicbusiness

🎶 103,500 tracks were uploaded to music streaming services every day in 2023, according to data from analytics firm Luminate. 🎶 This content tsunami is why streamers (Spotify, Deezer) are adopting new royalty models that require a minimum number of listens before an artist starts getting paid. Companies like Universal Music Group are cheering (and steering) these moves, while smaller artists are raising concerns. For more on the trends—the vinyl renaissance, the spending habits of K-pop and J-pop super fans, the rise of Peso Pluma 🇲🇽 , and more—that are shaping the music industry, don't miss this excellent report from David Salazar.

So, TikTok and Universal Music Group (UMG). Whose side are you on? Me? Couldn't care less! Streaming across the board now earns the recorded music industry (which is not THE music industry, just a part of it) up to 84% of its revenues, depending on which statistics you look at. Spotify alone contributes $9bn of a total of $28bn (again, varies according to where you look). TikTok, on the other hand, paid out £400m last year - according to its own calculations, which are based on some claims by Universal to which we are not privy. So, really, this is a storm in a teacup. And it will get sorted. TikTok is not, as generally believed, Chinese-owned. If it was, it would play by different rules, and there'd be no telling where this spat might end. But TikTok today is 64% owned by global investment houses, and they will play by their rules. They might, for instance, discover, that the lack of UMG content makes no difference to their bottom line. In which case, you can wave goodbye to big label music content on the platform - because now UMG is extending its ban to include any music written by UMG writers and artists. Which would be a very big proportion of Warner and Sony content. If, though, the lack of big commercially available music is seen to hit TikTok's bottom line, then you can expect to see an uptick in what the platform pays to music creators. Which would be even better for those who self-release, on whose behalf - by proxy - UMG is fighting this fight. Still and all, $400m out of $28bn - it's hardly do or die, is it? Mountains and molehills...

💡 What if Spotify introduced a 'modest' fee for its free tier? 💡 A recent article by Music Business Worldwide delved into this intriguing question, sparking thoughts on the future of music streaming. Spotify and streaming services changed the music industry forever. Many music fans today haven't experienced the era when you had to purchase albums and singles to build your collection. This shift has dramatically changed how music is monetized and how artists are compensated—often, many argue, for the worse. With recent price hikes for premium subscriptions, the question arises: what if Spotify eliminated its free tier altogether? Consider this: in Q1, Spotify reported 615 million global MAUs, with 388 million being ad-supported (free) users. That's over half of its user base. If Spotify started charging for all access, would users flock to other platforms? It's likely, as most streaming services offer similar music libraries. If Spotify isn’t free, users might simply migrate elsewhere unless every platform adopts the same model, which is unlikely. This scenario raises several compelling questions: 👉 Will we ever return to an era of paying for music? 👉 Can 'superfan' platforms and models succeed? 👉 Will artists ever see higher earnings from their music? It's a pivotal time for the music industry. Share your thoughts and check out the full article in the comments! 😁

Latin music revenue hit a record high of $685 million in the first half of 2024, according to the RIAA’s mid-year Latin music report released Thursday (Oct. 10). According to the analysis, Latin increased 7% compared to the first half of 2023, led by paid streaming subscriptions, which account for two-thirds of U.S. Latin revenue. Furthermore, Latin music revenues in the first half of the year once again grew faster than the overall recorded music market. 

8% growth YOY

It is a messy business

Taylor Swift isn't the only one singing sweet melodies of success this year! 🎶 According to Business Insider, the global recorded music revenue has seen a booming growth of 10.2%, all thanks to the #streaming revolution! From Spotify to Apple Music, streaming platforms have become the rhythm of our lives, propelling the music industry to new heights. And with artists like Taylor Swift leading the charge, it's no wonder we're hitting record numbers. In fact, she brought in more money this year than most corporations ($1.82 billion in 2023). But it wasn't just Swift and her business partners that made major money last year. According to the annual IFPI report, global recorded music revenue topped $28.6 billion. Let's keep the music playing and the charts soaring! 🎉 Who's your favorite artist making waves in this golden age of music streaming? Share your playlist gems below! 🎧💫 #MusicIndustry #StreamingRevolution #TaylorSwiftSuccess #ChartToppers