Music

Music

 

Music markets by growth and scale


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Streaming growth will slow, but revenue rises will remain strong

Downloads alone will have almost the same share as physical format sales

Key insights at a glance

1

Digital recorded music revenue will surpass physical recorded revenue in 2014. Global total digital recorded music revenue will exceed physical recorded music revenue for the first time in 2014, at US$10.18bn against US$10.17bn, respectively. Growth in digital has given consumers greater choice and allowed many different formats to flourish. Greater service appeal for consumers will improve sales and by 2018, the year-on-year decline in total recorded music revenue will be just -0.1%.

 
2

Download sales growth may be slowing, but the format remains strong. Global digital music downloading revenue saw near unbroken double-digit year-on-year growth from 2009-2012, but will only rise at a 3.3% CAGR to 2018, reaching US$7.1bn. Apple is the dominant player, so all eyes will be on its typically innovative release initiatives to keep downloads relevant.

 
3

Not all 'bricks and mortar' music retailers are giving up on selling music. Big music retail chains have largely been excluded from the growth of digital music, but some are adjusting their strategies by branching out into streaming. Their efforts will contribute to a 13.4% CAGR rise in global digital music streaming revenue to 2018.

 
4

Mobile music will see major gains in emerging markets. The introduction of low-cost smartphones in many emerging markets will present new opportunities to access affordable music. This will help global mobile music revenue to rise by a 1.5% CAGR to 2018, driven by countries such as Nigeria (21.0% CAGR), Malaysia (10.0% CAGR) and China (8.5% CAGR).

 
5

Live music is extending its geographical reach. While global total live music revenue will rise by a 2.7% CAGR, countries such as Brazil and Indonesia will see rises of 6.3% and 8.0%, respectively, as emerging markets increasingly establish themselves as key locations for festivals and tours.

 
6

The music industry is starting to use 'big data' to better engage with consumers. Record companies are increasingly turning to digital data analysis as a means of developing targeted marketing campaigns. They are also beginning to see ways in which fan data can be used to drive tailored promotions to better engage consumers. Getting this analysis right will have positive repercussions for recorded music revenue



What data can I access by purchasing an online subscription?

The following data is available for music for 54 countries (where available).

Revenue data:

  • Total music revenue
  • Total live music revenue
  • Live music sponsorship revenue
  • Live music ticket sales revenue
  • Total recorded music revenue
  • Physical recorded music revenue
  • Total digital recorded music revenue
  • Digital music streaming revenue
  • Digital music downloading revenue
  • Mobile music revenue

Non-revenue data:

  • Total music unit sales
  • Digital music unit sales
  • Physical music unit sales

Segment definition

This segment comprises consumer spend on music, including both physical and digital recorded music and live music played at concerts, as well as revenue from sponsorship of live music, but does not include revenue from merchandise or concessions at live music events. This segment includes both digital and non-digital revenue, and revenue from both consumer and advertising spending.

The recorded music component comprises physical and digital. All consumer spend is measured at retail level which can be substantially higher than the wholesale or trade value revenues sometimes reported. This segment includes both digital and non-digital revenue, and is revenue from consumer spending.

Physical recorded music covers any retail or online purchase of official physical albums (i.e. CDs), single sound recordings or music videos. Digital recorded music considers the sale of any licensed music distributed digitally to connected devices (including PCs, tablets, smartphones, and dedicated music players), and is split between streaming and downloads.

Streaming comprises revenue from subscription and advertiser-supported streaming services (such as Spotify). Note that service providers do not break this revenue out into consumer and advertising components.

Downloads includes revenues from any licensed recorded music downloaded via app stores or licensed services (such as iTunes).

Mobile music here refers to the purchase of ringtone and ring-back tones only. Revenues from music services that are delivered wirelessly to connected devices (such as Spotify) are included under digital.

For live music, consumer spend on tickets is included along with sponsorship revenues. This segment is non-digital and represents revenue from consumer and advertising spending.

The total number of music units sold at retail level, both physical and digital, includes both single tracks (as either physical or digital singles) and albums (either digital or physical).

The number of individual music tracks sold digitally includes digital singles, albums and paid-for music videos. The number of physical music units sold includes albums on CD, single sound recordings and paid-for music videos.

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Regions/countries covered

North America

EMEA

 

Asia Pacific

Latin America

Canada
United States

Western Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Central and Eastern Europe
Czech Republic
Hungary
Poland
Romania
Russia
Turkey

Middle East/Africa
Israel
Middle East/North Africa †
South Africa

Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Argentina
Brazil
Chile
Colombia
Mexico
Venezuela

 †Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates