Global spending on music rose 1.3 percent in 2011, the first increase in several years as growth in concerts/music festivals offset a modest decline in recorded music. New streaming services will fuel growth in digital distribution, helped by broadband, smartphone, and tablet penetration growth. The digital market will also benefit from social media activity which stimulates interest in acts, contributing to the growth in downloads. Physical distribution will continue to decline, but at moderating rates during the latter part of the forecast period, since the remaining physical market increasingly consists of people who prefer music in physical formats.
The touring market rebounded in 2011, and local festivals contributed to the expansion. We expect a healthy festival market to drive growth during the next five years. Growth in 360 deals with labels will enhance the market, as labels will be actively promoting tours as they share in performance revenues.
Global spending on digital formats increased from 16 percent of spending in 2007 to 33 percent in 2011, and will surpass physical distribution in 2015 to reach 55 percent in 2016.
The music market consists of recorded music and live music. Recorded music comprises spending on physical formats—albums, single sound recordings and music videos—as well as digital distribution. Digital distribution consists of music distributed to mobile devices and music downloaded from the Internet through licensed services or app stores. Revenue from subscription and advertiser-supported streaming services is also included. The recorded music market does not include subscription fees paid to Satellite Radio providers, or advertising generated by Internet radio services, nor does it include revenues from music publishing. Spending is measured at retail which can be substantially higher than wholesale or trade value revenues that are often reported.
For the first time, we have included estimates and forecasts for live music. This consists of concerts and music festivals, and comprises end-user spending on tickets as well as sponsorships.
Forecasts for consumer/end-user spending in the music segment across 48 countries cover (where available):
|North America||EMEA||Asia Pacific||Latin America|
|Central and Eastern Europe
Middle East/North Africa †
|†Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates|