MBW’s Stat Of The Week is a series in which we show why a single data point deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group, a technology-driven record label, distribution and rights management company.
Think back to the first half of 2020. The global music industry (like all of us) began to be plagued by scary and depressing daily news about the pandemic and began to doubt the safety of its own short-term future.
With retail store closures and royalty income generated by bars and restaurants closings, reports surfaced suggesting record labels should prepare for a mini crash.
Such fears intensified in the second quarter as the major music groups’ release schedule became noticeably thinner. (Case in point: The music recording division of Universal Music Group – the world’s largest record company – saw quarterly revenue declined 4.5% year over year on an organic basis.)
Better news was just around the corner, however. Midia Research today released its estimate of what the global music industry – including majors, indies and DIY artists – made in wholesale / retail revenue over the course of 2020.
Midia’s numbers suggest the music recording business had annual sales of $ 23.1 billion. That was a 7% increase over 2019 and a $ 1.5 billion increase in cash over the previous year.
It would take a hard-hearted industry commentator to complain about 2020 growth, but that $ 1.5 billion / + 7% annual increase, according to Midia, is less than the $ 2.1 billion growth in the Year 2019 (+ 11% year-on-year).
Midia remarks: “Although the [worldwide] The music recording business saw a decline in the early months of the pandemic. As the year progressed, the industry’s income recovered. “
That rebound, Midia said, resulted in quarterly sales of the global music business increasing 15% year-over-year in the fourth quarter of 2020, suggesting a strong 2021 could be ahead if this momentum continues.
Interestingly, worldwide annual music streaming revenue actually grew faster in monetary terms in 2020 than it did in 2019.
Midia’s numbers suggest that total streaming revenue (music retailing) increased by $ 2.3 billion (+ 19.6%) to $ 14.2 billion in 2020.
In the previous year, annual streaming growth was $ 2.2 billion, according to the research company.
MBW’s statistics of the week: The world’s record industry grew its annual revenue by $ 1.5 billion in 2020 compared to 2019 – and the industry’s total streaming revenue actually grew faster than it did in 2019.
Both Universal and Sony’s music operations saw annual growth in 2020, with Warner’s numbers unchanged in 2019.
Midia’s numbers suggest that the big three music companies lost a small global market share over the twelve months combined, falling from 66.5% in 2019 to 65.5% in 2020.
Midia notes: “While this shift is part of long-term market momentum, most of the decline was due to WMG’s flat sales for the year.”
Another factor was one of the biggest industry stories of 2020: the continued growth of the DIY artist sector.
DIY artists who upload their music through TuneCore, DistroKid, and SoundCloud generated $ 1.2 billion worldwide last year, Midia says.
According to the company, this “Artists Direct” sector recorded annual sales growth of 34.1% in 2020, surpassing the billion dollar mark for the first time.
“Artists Direct” has increased their collective market share by more than a whole point to 5.1%, says Midia.
Mark Mulligan, MD of Midia said, “The recording business has been performing well because of the growth in streaming alone. Streaming has been the engine room since the music recording business grew again. However, the decline in performance and dubbing revenues due to the pandemic has made it clear how heavily the global music business has become dependent on streaming.
“With a lot of private equity money now flowing into companies like Native Instruments, this area will only grow in 2021. The music recording business is changing, and it’s changing fast.”
Cinq Music Group’s repertoire has garnered Grammy awards, dozen of gold and platinum RIAA certifications, and numerous # 1 chart positions on a variety of Billboard charts. The repertoire includes heavyweights like Bad Bunny, Janet Jackson, Daddy Yankee, TI, Sean Kingston, Anuel and hundreds more.Music business worldwide