In the ever-evolving landscape of the music industry, it’s important to keep up with the newest trends and advancements. As we delve into the year 2022, global recorded music revenues reached $31.2 billion. It becomes apparent that the distribution of global recorded music revenues has undergone a significant transformation. Our job is to explore the various segments of the industry and shed light on their respective contributions to the overall revenue stream.
1. Streaming dominates the music industry
With a staggering 67.1% share, total streaming emerges as the undisputed powerhouse of the global recorded music revenues. The rapid growth of music streaming platforms continues to reshape the way we consume music, revolutionizing the industry’s revenue model. The convenience, accessibility, and vast catalogues offered by these platforms have captivated music lovers worldwide, leading to a surge in streaming revenues.
2. Physical sales maintain their relevance
Contrary to the perception that physical music sales have been rendered obsolete, they still hold a significant market share. In 2022, physical sales accounted for 17.5% of global recorded music revenues. This segment includes sales of CDs, vinyl records, and other tangible formats. Unlike vinyl albums, which have set sales records for 18 years, CDs have plummeted. Streaming has caused physical sales to decline, but collectors and fans who like the tactile experience and album artwork still buy them.
3. Performance rights make their mark
Performance rights, which encompass the licensing of music for public performances, have seen a notable increase in their contribution to global recorded music revenues. This segment accounted for 9.4% in 2022, emphasizing the growing significance of live music events, concerts, and broadcast royalties. As artists and songwriters receive compensation for their creations being played in public spaces or broadcasted, performance rights have become a valuable revenue stream.
4. Synchronization opportunities rise
Synchronization, or the use of music in film, TV, advertisements, and other media, holds a smaller yet noteworthy share of global recorded music revenues, with 2.4% in 2022. This segment offers opportunities for artists and composers to have their music showcased and gain exposure to wider audiences. The synchronization market persists due to the proliferation of streaming platforms, gaming, and the ever-expanding audiovisual industry.
As music streaming gains popularity, the download segment has witnessed a decline in recent years. In 2022, downloads accounted for 3.6% of global recorded music revenues. With the convenience and affordability of streaming services, consumers have shifted towards subscription-based models that provide access to vast music libraries on-demand. Nevertheless, the download segment still caters to individuals who prefer to own their music or have limited internet access.
The distribution of global recorded music revenues in 2022 reflects the ongoing transformation and diversification of the music industry. Total streaming dominates the landscape, revolutionizing the way we consume music. Physical sales, while declining, maintain their relevance for dedicated collectors. Performance rights and synchronization provide valuable avenues for artists and songwriters to earn royalties and gain exposure. Meanwhile, the download segment experiences a downward trend due to the rise of streaming services. Understanding these segments helps music industry stakeholders adapt, navigate, and capitalize on evolving consumption trends.