Paid Streaming Subscription Drive Revenues In Music Industry Globally
A new report has shown how the growth of paid subscription streaming has helped the global recorded music market grow by 9% in 2022. This is according to figures released in IFPI’s Global Music Report, which also showed that the total trade revenues for 2022 were $26.2 billion.
Subscription audio streaming revenues increased by 10.3% to US$12.7 billion and there were 589 million users of paid subscription accounts at the end of 2022. Total streaming (including both paid subscription and advertising-supported) grew by 11.5% to reach US$17.5 billion, or 67.0% of total global recorded music revenues. There was growth in other areas too with physical revenues remaining resilient (+4.0%); performance rights revenue increasing by 8.6% and returning to pre-pandemic levels; and synchronisation income climbing by 22.3%.
Commenting on the release of the Global Music Report, IFPI Chief Executive Frances Moore, said:= that record companies are working with artists to help them achieve their greatest creative and commercial potential over the course of a career. He further said that it requires an artist-label partnership that constantly evolves and innovates so that it can capitalise on opportunities in more business areas and more parts of the world.
“Record companies’ investment and innovation has helped make music even more globally interconnected than ever, building out local teams around the world, and working with artists from a growing variety of music scenes. This is driving music’s development whilst enabling fans to seize the expanding opportunities to embrace and celebrate their own local artists and culture,” he noted.
“However, as the opportunities for music continue to expand, so too do the areas in which record companies must work to ensure that the value of the music artists are creating is recognised and returned. This challenge is becoming increasingly complex as a greater number of actors seek to benefit from music whilst playing no part in investing in and developing it,” Frances added.
Paid subscription have fuelled Recorded music revenues to grow in every region around the world in 2022.
Asia grew by 15.4% with its largest market, Japan, seeing growth of 5.4% whilst the second largest market, China, grew by more than 20% (28.4%), becoming a global top five market for the first time. In a continuing trend, Asia also accounted for almost half of global physical revenues (49.8%).
Australasia experienced growth of 8.1%, an increase on the prior year’s growth rate of +4.7%. Australia (+8.1%) remained a top 10 market globally and New Zealand saw a rise in streaming revenues push the overall market to growth of 8.0%.
Revenues in Europe, the second-largest recorded music region in the world, grew by 7.5%, with the region’s three biggest markets all posting gains: UK (+5.4%), Germany (+2.2%) and France (+7.7%).
Latin America saw gains of 25.9%, maintaining more than 10 years of regional increases. Every market in the region posted double-digit growth.
Middle East and North Africa – previously the fastest growing market in 2021, MENA had third highest growth rate in 2022, seeing increase of 23.8%, and representing the highest share for streaming of any region globally (95.5%).
Sub-Saharan Africa – becoming the fastest growing region in 2022 with more than 30% growth (34.7%), SSA was driven largely by a significant boost to revenues in the region’s largest market, South Africa (+31.4%).
The USA & Canada region – the world’s largest in revenue terms – grew by 5.0% in 2022; The world’s single biggest market, the USA, grew by 4.8% a – exceeding US$10 billion for the first time – and Canadian recorded music revenues increased by 8.1%.
Commenting on the release of the Global Music Report, IFPI Sub Sharan Regional Director Angela Ndambuki, said that this continues to be a very exciting time for music in Sub-Saharan Africa.
“In an incredibly nuanced market with lots of different cultures and music scenes, we can see how the proactive presence and investment of record companies here is driving the development of healthy music markets, creating opportunities for local artists and fostering local cultures. It’s particularly important that we continue to work with governments across the region to ensure we have the right policies in place for a thriving recording industry,” Angela said.