Global music market grows by 7.4 percent through streaming

Global music market grows by 7.4 percent through streaming

The global music market grew by 7.4 percent in 2020 for the sixth consecutive year. That equates to total sales of now $21.6 billion, about 18.3 billion euros. The driver, according to the Global Music Report from the International Federation of the Phonographic Industry (IFPI), is the streaming business.

Streaming revenue generator

In streaming, the gangly subscription models with monthly payments are especially in demand and grew 18.5 percent in 2020 compared to 2019, according to the IFPI’s Global Music Report. Around 434 million music lovers have opted for such a paid subscription. Together with ad-financed streaming offers, the entire sector accounts for 62.1 percent, the lowest share of total global music sales. Subscription model and advertising model together grew 19.9 percent, generating $13.4 billion in revenue.

Global music market grows by 7.4 percent through streaming

Music industry revenue by segment 2020.

Slump in physical sound carriers

For physical sound carriers, the decline continued as in previous years. Here, the decline in sales is about 4.7 percent and now amounts to $4.2 billion. Revenues from performance rights, such as those generated by playing music at public events, also declined, by a total of 10.1 percent to $2.3 billion. The IFPI sees the impact of the corona virus pandemic as causal here, as hardly any public events could take place in 2020 due to the corona decreases.

Revenue from downloads and other digital formats excluding streaming music also declined, falling 15.7 percent to $1.2 billion. Less revenue was generated from the use of music in films, advertising and games, where revenues fell by 9.4 percent to 400 million dollars. Despite losses in various areas, growth in streaming business offset and exceeded declining revenues.

Increase in all regions

Latin America achieved the highest growth at 15.9 percent. Streaming share increased by 30.2 percent. Streaming now accounts for 84.1 percent of the region’s total revenues here.

Good growth was seen in the Asian music market at 9.5 percent. For the first time, the share of total revenues accounted for by music streaming rose to more than 50 percent. In Europe, the music industry also saw strong growth in streaming of 20.7 percent, but overall revenues grew by only 3.5 percent. Streaming business grew 7.3 percent in the U.S. and 8.1 percent in Canada.

In its report, the IFPI for the first time addressed the Africa and Middle East region, which grew by 8.4 percent. Here, too, the streaming segment proved to be the revenue driver in 2020, with an increase of 36.4 percent.

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