IFPI’s recently released industry report contextualizes the music industry, driven by streaming revenue.
The global music industry continued its rise in 2022. Last year was the eighth consecutive year that recorded music revenue has increased, according to the International Federation of the Phonographic Industry’s (IFPI) Global Music Report 2023. The report says the global recorded music market grew by 9% to $26.2 billion.
The report also revealed that the U.S. continues to leads the way in terms of revenue. China, meanwhile, made its first-ever move into the top five leading markets. The growth continued to support the rising viability of streaming, physical revenues, performance rights, and synchronization. Most of all, subscription-based streaming largely catalyzed the expansion, with 10.3% growth from 2021-22.
“To succeed, music’s future must be artist-centric. As we enter our industry’s next exciting chapter, we must remain focused on our shared goal: a robust, growing and sustainable music ecosystem,” Sir Lucian Grainge, the CEO of Universal Music Group, said in the report.
Streaming continues to fortify its presence as its accessibility and consumer-centered software enhancements expand. Overall streaming — included subscription and advertising-supported — was the highest segment of the market, with a 67.0% share in 2022 vs. 65.5% the previous year. Almost all formats experienced revenue gains, but yet again, streaming was king. That 67% share came out to a total of $17.5 billion.
The post-pandemic state of the industry revitalized a nostalgia for physical ownership of music and an aesthetic connection to humble beginnings, increasing the acquisition of vinyls and CDs. For a second year, physical revenue formats increased. While CDs saw a slight decline, vinyls grew 17.1% in 2022.
“This is an environment in which great music is not drowned out by an ocean of noise, where music is easily and clearly accessible for fans to discover and enjoy, and an environment in which the creators of all music content–whether in the form of audio or short-form video—are fairly compensated and can therefore thrive for decades to come,” Grainge said.
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