Author : Jennifer Stone
Image Source : boardroom.tv
Audiences around the world eye-witnessed the growth of the music industry in 2022 providing perception and scrutiny on urgent global drifts and problems surfacing the music industry. The constantly growing revenue is making space for reinvestment in the upcoming generation of artists. The Global Music Report clearly states that there is a constant requirement for technologies and media to enrich the value of music and its creators.
Global revenue rose to $26.2 billion, gained a hike of 9%, yet could not break the record growth of 2021. IFPI reports that around 580 billion users are there up from the previous year’s 523 billion paid subscribers. Despite the influence of streaming platforms, physical format maintains their popularity.
As per the report of The Global Music Report 2023, the global music market has increased by 9% and made it to $26.2 billion. The USA and Canada managed to secure the first position in the list of top 10 music markets in 2023 for being the largest region for recorded music, followed by Japan. Europe made it to the second position in the list followed by the Middle East and North Africa in the third. Meanwhile, China appears for the very first time in the top five largest music markets. Brazil managed to climb back to the list of top ten.
The Chief Executive of the IFPI Frances Moore stated, ‘Music continues to grow globally, and artists are increasingly interconnected with fans as a result of the worldwide infrastructure and investment from record companies.’ The policy principle of IFPI highlights the importance of human creativity by saying, ‘The artist must remain at the center of all that we do’,The industry is thrilled by all AI offers, Nevertheless, AI must not spread its wings at the cost of human and their creativity.
Patrick Rogers, the Chief Executive Officer of Music Canada labels, ‘The growth of the Canadian music market is driven by the incredible commercial and creative partnerships between artists and labels. More than ever, labels play an essential role as the leading investors in artists, helping them break through and connect with their fans globally.’
Revenues of the US and Canada have increased by 5% in 2022, Also for the very first time the recorded music revenue of the USA gained above $10 billion. France made its way to sixth in the list followed by South Korea where Germany made it to fourth in the top ten list and the UK stands third in the column. UK revenues gained 26% of the total. The gain in the Canadian market is highlighting the comprehensive industry tendency.
It is happening for the second time that revenues of recorded music grew all over the world. Sub-Saharan Africa will become the region that holds 34.7% in 2022. The report emphasizes the growing need for emerging markets. In the meantime, Latin America witnessed growth of 25.9%. Every region is gaining double-digit growth where Asian revenues increased by 15.4%. However, Australia experienced revenue growth of 8.1% which was 4.7% last year.
Roger also mentioned, ‘As the industry continues to evolve and develop new and innovative ways to bring music to global audiences, it’s vital we keep artists and the businesses who invest in them at the heart of our work. As the representative of Canada’s major labels, and partner to the industry, we will continue to advocate for forward-looking policies that support artists’ creative and commercial success,’
The IPFI also highlighted that strategies differ in different regions of the world, such as in South Africa there is a challenge of converting audiences from free users to subscribed ones who use streaming platforms. Meanwhile, over 65% of people from households in Australia and New Zealand have now started paying for music subscriptions on online platforms. The issue of understanding the importance of the potential of regional repertoire has also been highlighted to invest in and inspire local creators to construct their careers.
The IFPI #GlobalMusicReport – the definitive guide to the recorded music market worldwide – is out now.
Download the full State Of The Industry report to discover the story of today’s constantly growing and evolving music world https://t.co/LtyCpJ4HWM pic.twitter.com/P8pDgerwf6
— IFPI (@IFPI_org) March 21, 2023
Frances Moore also expressed, ‘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 local artists and culture,’.
The Global Music Report 2023 indicates slow growth in global markets. The revenue of physical format grew 4% in comparison to 16% in 2021. Simon Robson, the head of Warner Music Group said, ‘I do think there are pockets of established markets where there is an opportunity to grow,’ Nash stated in IFPI’s Global Music Report 2023, ‘We need to work very hard to define new models so that we can enable generative AI without looking away from what is essentially going to be wholesale hijacking of the intellectual property of the entire creative community,’
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