Music

After a challenging decade for the music industry, growth will return. Based on growth in digital and growth in live music, overall spending on music will grow from US$49.9bn in 2012 to US$53.8bn in 2017, a CAGR of 2%. EMEA will remain the largest region by revenues, thanks to contributions by the UK, France and Germany, the three largest music territories in the region.

Moreover, the improvement in the music industry’s fortunes comes despite the prevalence of pirated material and despite that every track popular with consumers that was ever released in this century is still easily available from an unlicensed service somewhere online.

Global music revenues (US$ mn) 2008-2017

Globally, the music industry is getting back on track: total consumer spending on music in 2012 was US$49.9bn, a slight fall from 2011. However, annual revenue will start to grow again in 2013, reaching US$53.8mn in 2017, a CAGR of 2% over the forecast period.


The fastest growth will come from countries not traditionally the largest music markets, including Russia, Sweden, China and Brazil. India, with a CAGR of 14%, will be the fastest growing. The expansion of music-streaming services will drive growth among smartphone users.
Forecast growth for selected markets (2012-2017 CAGR %)
Digital-music revenues will exceed physical revenues by 2016, demonstrating the importance of digital to the industry. Widespread access to broadband and smartphones will encourage further growth in music subscription services, although there will be no uniformity in the way digital markets will evolve.
Global recorded music revenues split by physical and digital (US$ mn) 2008-2017
Live music is continuing to grow, with sales of tickets and sponsorship forecast to generate revenues of US$30.9bn in 2017, up from US$26.5bn in 2012, a CAGR of 3%. That growth will more than offset the continued decline in recorded music revenues.
Global live music vs recorded music revenues, 2008-2017 (US$mn)
 

How we define this segment

This segment is split as recorded music vs. live music played at concerts and considers consumer spend on music.

The recorded-music component is split into physical and digital elements. Physical will cover any retail or online purchase of albums, single sound recordings and music videos.  Digital consists of any music distributed digitally to mobile devices and computers and includes any music downloaded via app stores or licensed services. Revenue from subscription and advertiser-supported streaming services is also included.

All consumer spend is measured at retail level, which can be substantially higher than the wholesale or trade value revenue often reported.

The recorded-music market does not consider subscription fees paid to satellite radio providers in North America or any advertising generated by Internet radio services / music publishing.

For concerts, consumer spend on tickets is included along with sponsorship revenue. Merchandise is not included within this estimate.

What data is included in the online Outlook?

Forecasts for consumer spend in the music segment across 50 countries cover (where available):

  • Physical recorded music spending (US$ m)
  • Digital recorded music spending (US$ m)
  • Total recorded music spending (US$ m) (total = physical + digital)
  • Concerts / music festival spending (US$ m)
  • Total music spending (US$ m) (total = physical recorded music + digital recorded music + concerts / music festivals)
  • Physical music unit sales (m)
  • Digital music unit sales (m)
  • Total music unit sales (m) (total = physical recorded unit sales + digital recorded unit sales)
 
 
 
 

 
 

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