Music Industry Insights: A Look at H1 2023 Trends and Developments

In the dynamic realm of the music industry, the first half of 2023 has witnessed a wave of shifts. Luminate’s latest report serves as a beacon, illuminating the industry’s current landscape with intriguing insights. These revelations not only offer valuable information but also provide a unique perspective on the vibrant world of music.

About Luminate

Before we go on a discovery journey, let’s get to know Luminate, the powerhouse behind these insights.

Luminate is a leading provider of entertainment data and reports. As a company, it provides objective and reliable information from various fields of entertainment regarding music, film, television, games, and short video forms. Their extensive databases combine data from over 500 authoritative sources, managing an incredible 20 trillion data points. With such potential sources, you can trust the final data.

The work of the Luminate team is not only powerful but also prophetic. Luminate’s team is rooted in the intersection of technology and media, tackling today’s challenges and shaping tomorrow’s plans.

Enthusiasts (Super Fans), Icons, & Devotees

One of the most striking trends observed in the first half of 2023 is the growing influence of devoted music enthusiasts on the industry’s trajectory. These fervent aficionados, aged 13 and above, engage with artists and their creations through multifaceted channels, spanning from streaming to live concert attendance. The report’s data underscores the pivotal role played by these passionate supporters, who constitute 15% of the overall music listener population, in shaping the industry’s course.

Notably, ardent collectors, who hold a deep affection for music memorabilia, continue to be instrumental in fueling the ongoing surge in vinyl sales—a trend that has persisted for several years. However, what sets apart the first half of 2023 is the remarkable upswing in Direct-to-Consumer (D2C) music sales from artists’ online stores, with D2C vinyl sales alone witnessing an impressive 25% surge. These dedicated supporters are at the forefront of this burgeoning movement, outspending the average music listener by over 80% each month.

Locals, Lyrics & Language

Another remarkable insight reshaping the music industry is the escalating popularity of non-English-language music. Over the past decade, genres such as Latin and K-Pop have experienced an unprecedented surge in sales and streaming figures.

As per Luminate’s Music 360 research data from Q2 2023, a staggering 40% of U.S. listeners now savor music in languages other than English. Among U.S. audiences, Spanish, French, Korean, Japanese, Italian, German, and Arabic reign as the most favored non-English music languages.

Breaking conventions, the Country music genre, traditionally catering to English-speaking audiences, has transcended borders. In March, Country music achieved a historic streaming milestone, partially propelled by the release of Morgan Wallen’s latest work. Furthermore, this genre’s popularity has soared in various international markets, encompassing the Philippines, Indonesia, India, Brazil, Mexico, Germany, and Vietnam.

The Impacts of New Tracks and AI

In May, Luminate uncovered a captivating trend in the first half of 2023— an average of 120,000 new ISRCs (International Standard Recording Codes) were registered daily, representing a remarkable 28% surge compared to the previous year. This surge in fresh compositions underscores the industry’s resilience and unbridled creativity.

Additionally, the report delves into the growing role of artificial intelligence (AI) in music production using the song “Heart on My Sleeve” as an example. This AI-generated composition mimics the style of famous artists such as Drake and The Weeknd. It gained widespread recognition, sparking discussions about the potential impact of AI on the music landscape and the issue of copyright protection. On the one hand, Harvard law expert Louis Tompros explains why art generated by artificial intelligence does not qualify for copyright protection. On the other, it shows the future “material impact” of AI on the music industry (more read here: AI created a song mimicking the work of Drake and The Weeknd. What does that mean for copyright law?).

Summary

The music industry remains in a perpetual state of transformation, and the first half of 2023 only confirms it.

Super fans, the rise of non-English-language music, and the proliferation of new compositions driven by artists and by AI are just a few of the remarkable trends in the music industry.

Luminate’s report stands as a valuable compass that can help anyone to make informed decisions. Data is critical when formulating budgets, crafting publications, and planning new releases in this music world.