Streaming increases revenue from recorded music
LONDON: Global recorded music revenue rose 9% last year to $26.2 billion, with growth recorded across all regions and an increase in paid subscription streaming helping to drive sales, according to a report released Tuesday.
Among the trends highlighted by IFPI, a trade body for the recorded music industry, China has cracked the top five global markets for the first time, and revenue from music usage recorded in commercials, films, television and games, increased by 22.3%.
Revenue from CDs, vinyl and other physical formats grew 4% to $4.6 billion, a slower pace than the 16.1% growth in 2021, which was spurred by a post-pandemic recovery, according to IFPI’s Global Music Report.
Subscription audio streaming revenue rose 10.3% to $12.7 billion, IFPI said, adding there were 589 million paid subscription account users at the end of 2022. Overall, streaming accounted for 67% of total recorded music revenue.
Global music revenue experienced its eighth consecutive year of growth.
“Record label investment and innovation has helped make music even more interconnected than ever, building local teams around the world, and working with artists from a growing variety of music scenes,” he said. said Frances Moore, Executive Director of IFPI.
“It stimulates the development of music while allowing fans to take advantage of the growing opportunities to embrace and celebrate their own local artists and cultures.”
Total streaming, which includes both paid and ad-supported subscriptions, grew 11.5% to $17.5 billion.
Growth was also driven by higher performing rights revenue which rose 8.6%, returning to pre-pandemic levels.
Only downloads and other non-streaming digital formats saw revenue decline by 11.7%.
Recorded music revenues increased worldwide, led by Sub-Saharan Africa which recorded a growth rate of 34.7%, followed by Latin America with 25.9%, the Middle East and North Africa with 23.8%, Asia with 15.4% and Australia with 8.1%.
Revenues in Europe rose 7.5%, while the United States and Canada recorded gains of 5.0%. Revenue from the United States, the world’s largest market, rose 4.8% and topped $10 billion for the first time.