{"id":99287,"date":"2020-11-03T12:31:30","date_gmt":"2020-11-03T17:31:30","guid":{"rendered":"https:\/\/celebrityaccess.com\/?p=99287"},"modified":"2020-11-03T12:31:30","modified_gmt":"2020-11-03T17:31:30","slug":"2020-state-of-the-music-industry","status":"publish","type":"post","link":"https:\/\/dev.celebrityaccess.net\/2020\/11\/03\/2020-state-of-the-music-industry\/","title":{"rendered":"2020: State Of The Music Industry"},"content":{"rendered":"

(Hypebot<\/a>) —\u00a0While 2020 has been a\u2026 challenging year for the music business, certain aspects of the industry have found a way to endure and, in some cases, even grow.<\/p>\n

Guest post by\u00a0James Shotwell<\/strong>\u00a0of\u00a0Haulix<\/a><\/em><\/p>\n

Most of 2020 has been a disaster, but the ever-resilient music industry is finding a way to continue growing in spite of the global pandemic.<\/strong><\/p>\n

There are countless ways to gauge the health of the music industry. At Haulix, we often examine the volume of new releases and the reception they see when consider how well things are going. Others may look at touring revenue, audience sizes, or any one of a million other data points.<\/p>\n

Recently, our friends at\u00a0Toptal<\/em><\/a>\u00a0did a thorough examination of the music industry from a strictly financial point of view. Their work considers the changing trends in consumption, the spread of COVID-19, and many more factors that inform what is happening day to day throughout the music business. Lucky for us, they\u2019re allowing us to share their insights with you.<\/p>\n

The State of the Music Industry in 2020<\/h2>\n

The global music recording industry is back in growth territory again. According to the International Federation of the Phonographic Industry (IFPI), recorded music revenue returned to growth in 2015, after nearly two decades of piracy-driven declines. The global industry\u2019s revenue bottomed out at $14 billion in 2014 but grew to $20 billion in 2019, back in line with 2004 levels.<\/p>\n

Streaming Is Driving Music\u2019s Growth<\/h3>\n

The convenience and personalization of music streaming, combined with the accessibility afforded by smartphones and smart devices, has driven recorded music\u2019s growth. IFPI notes that global streaming revenues grew at a 42% CAGR (compound annual growth rate) since 2015, compared to the entire recording industry\u2019s 9% CAGR. The following chart from IFPI shows the evolution of the industry\u2019s revenue composition and how streaming growth has more than offset declines in physical and downloaded formats over the past decade.<\/p>\n

Global Music Recording Industry Revenues: 2001-2019 ($ Billion)<\/strong><\/p>\n

\"Global<\/figure>\n

Meanwhile, the global music publishing industry has proven resilient throughout the economic cycles of the past decade. According to the International Confederation of Societies of Authors and Composers (CISAC), publishing\u00a0collections<\/a>\u00a0(performance royalties) increased from \u20ac6.5 billion in 2013 to \u20ac8.5 billion in 2018. Will Page, the former chief economist at Spotify,\u00a0estimates<\/a>\u00a0that the global publishing business \u2013 CISAC collections plus estimates of non-CISAC publisher revenues from Music & Copyright \u2013 is worth $11.7 billion in 2020.<\/p>\n

Despite its seeming ubiquity, streaming is still in the early innings of mass adoption. The following statistics highlight how the market still has room to expand:<\/p>\n

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  1. According to IFPI, there\u00a0were<\/a>\u00a0341 million global paid streaming accounts by the end of 2019.\n