Inflation crushes billions made in the music industry – hypebot.com
Share on facebook

Inflation crushes billions made in the music industry – hypebot.com

A lot of money does not mean a lot of success in the music industry, exemplified disappointedly in this last year.

A guest post by Bobby Owsinski of Music 3.0.
The latest IFPI report just came out look backing at how the global music industry did in 2021. If you take the report at face value, it looks like the music industry had its best year ever last year, coming in at worldwide total of $25.9 billion. While it’s true that its 18.5% $4 billion growth over 2020 was indeed impressive, when you look behind the numbers you see a different picture.
First of all, let’s adjust that $25.9 billion total revenue for inflation. What you get is a cool $39.2 billion. That means that even though last year’s number looks like the largest ever, the music industry has a long way to go before we get to the “biggest year ever” status of 1999. It’s still just 2/3rds of the its best year.
You can’t deny that the music industry is doing very well and that streaming has picked up some of the slack from sales, but it hasn’t totally replaced it and may never do so.
That’s because the numbers show that although most people consume their music via streaming, that growth is slowing. There are now 523 million streaming users worldwide. That number sounds pretty good, but their average payment every month is just $1.96. In 2020 it was $1.90, meaning that even if you add 80 million more users (which is what happened last year), the average amount of what they’re paying is up only a little.
Now the fact is that there are still relatively untapped markets like Africa and the Middle East, but while the total user and royalty pool will grow, these markets will pay less for streaming because their economies won’t allow for anything beyond that $2 dollar range, if that. 
Finally, the report shows that free ad-supported streaming tiers are actually paying more than thought. As a matter of fact, it almost is as much as all the physical sales combined. Free tiers brought in $4.6 billion while physical sales totaled $5.0 billion.
The downside here is that the margins are so much higher on physical, so an artist who has success in physical will make a lot more money than one with equal success on a free ad tier.
The bottom line is that the music industry is in a good place because the streaming market has matured. The bad news is that the numbers aren’t what they’re cracked up to be, and that a critical part of the business might be slowing down.
Bobby Owsinski is a producer/engineer, author and coach. He has authored 24 books on recording, music, the music business and social media.

Read more:  https://music3point0.com/2022/03/29/lots-of-money-being-made-by-the-music-industry-but-its-not-what-it-seems/#ixzz7OxcQJJWs 
Under Creative Commons License: Attribution Non-Commercial Share Alike

With the internet and digital technologies driving rapid change within the music industry, articles about new releases and who has been hired and fired are no longer enough. Our up to the minute industry news alongside insightful commentary helps our readers sift through the rumors and developments to find the information they need to keep their businesses moving forward.
Hypebot is read daily by more than 30,000 music industry professionals including executives and senior staff of music related tech firms, internet based music sites, every major label group and most indies as well as many managers, artists and members of the live music community:
Contact us for the latesst stats, ad rates and sponosorship opportunites. We also offer combined rates with MusicThinkTank.
“I swear by Hypebot every morning over breakfast.”
Derek Sivers
Founder, CD Baby
“Hypebot is the most focused music business centric resource we have.”
Celia Hirschman
One Little Indian, Downtown Marketing & KCRW-FM
“Well done.”
Seth Godin
Marketing guru

var F14249_sb_requiredFields=new Array();var F14249_sb_validateFields=new Array();F14249_sb_requiredFields.push(‘F14249_sb_Category’);F14249_sb_requiredFields.push(‘F14249_sb_email’);F14249_sb_requiredFields.push(‘F14249_sb_feedid’);F14249_sb_requiredFields.push(‘F14249_sb_publisherid’);F14249_sb_requiredFields.push(‘F14249_sb_cids’);var F14249_sb_fieldcol=’#000000′;var fbz_F14249_sb_logged=false;function F14249_sb_wait_fn(){try{if(!fbz_F14249_sb_logged){fbz_SmartForm(‘F14249_sb’,feedblitz_full_form);try{s(‘F14249_sb’);}catch(e){};fbz_FitForm(‘F14249_sb’);var F14249_sb_wait_img=fbz_formMetrics(14249,1);fbz$(‘F14249_sb_wait_img’).innerHTML=F14249_sb_wait_img;clearInterval(F14249_sb_wait);fbz_F14249_sb_logged=true;}}catch(e){}}
var F14249_sb_wait=setInterval(F14249_sb_wait_fn,100);
 

source

Relavance

SLOW LISTENING//HOW TO SLOW DOWN ALL THE MUSIC STREAMING – Planet Weekly

Petition to ban Kanye West from streaming platforms reaches 50,000 signatures – NME

Most Viewed

Trending

NFT TONE

NEWS