Archive for the 'market analysis' Category

30
Jul
17

The UK Recorded Music Market in a Long-Term Perspective, 1975-2016

The UK recorded music industry body BPI (British Phonographic Industry) reported a remarkable increase of recorded music sales from 2015 to 2016. According to BPI the growth was mainly driven by music streaming revenue, which increased by 61.0 per cent in a year-to-year comparison. Thus, as BPI (2017) points out, “(…) streaming accounted for 30 per cent of overall label revenues in 2016 (compared to physical at 32 per cent).  Such a rate of growth will undoubtedly see the format overtake physical to become the leading contributor to label revenues in 2017.”

The sales trend, however, indicates that the UK is on the way to a music streaming economy – as the US market, a fact I have highlighted in an earlier blog post. In the following long-term analysis of the UK recorded music market I am highlighting not just the recent recovery of UK’s recorded music sales in the past few years, but also the seemingly irresistible boom of the recorded music market since the mid-1970s and the tremendous sales decline in the 2000s.

Continue reading ‘The UK Recorded Music Market in a Long-Term Perspective, 1975-2016’

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05
May
17

The US recorded music market in a long-term perspective, 1990-2016

The Recording Industry Association of America (RIAA) recently published the shipment figures for recorded music in the US for 2016. The statistics highlight a tremendous shift from selling music (CDs and downloads) to accessing music (by streaming services). In the US, music consumers paid for the first time more for music access by ad-supported and paid streaming services (US$ 3.9bn) than for CDs, music downloads and ringtones (US$ 3.5bn).

 

Figure 1: Selling and accessing music in the US, 1990-2016

Source: RIAA Year-End Industry Shipment and Revenue Statistics, reports 1990-2016

 

Thus, the US turned into a music streaming economy last year. It was a long way from a pure physical recorded music market in the 1990s to a yet digitized and music streaming driven market. The following blog entry identifies different periods of the US phonographic market and explains the driving forces of the change.

Continue reading ‘The US recorded music market in a long-term perspective, 1990-2016’

30
Nov
16

The fate of the CD – an international CD-market analysis

In March 2010, my first blog post in the music business research blog was entitled “The CD is Dead! Long Life the Music Download?” – with a question mark. The prophecy has become partly true. In some markets, e.g. in Sweden, the CD is only a by-product such as vinyl with a combined market share 12.4 percent (IFPI 2016: 92). In other countries, e.g. Germany, the CD is still economically relevant. Physical sales in Germany accounted for 60.0 percent in 2015 – with 83.6m CD units and 7.6m other physical units sold (ibid: 81). However, the CD is on the way to insignificance and will end up as a nostalgic collectors’ item. The following economic analysis of the international CD market shed light into the dynamics of different markets and explains, why some markets are still driven by CD sales.

Continue reading ‘The fate of the CD – an international CD-market analysis’

30
Jun
16

The Music Streaming Market Revisited, 2011-2015

Last year, I posted an analysis of the international music streaming for 2014 based on IFPI numbers. Since then the global streaming market was highly dynamic and therefore I updated my analysis and included also earlier data. In 2015 the global streaming revenue (subscriptions and ad-supported streaming revenue) increased by 42.5 per cent (IFPI 2016: 17) and had a volume of US $2.89bn. The music streaming market is almost as big as the music download market (US $2.97bn) (IFPI 2016: 49). Music streaming, therefore, accounts for 42 per cent of the global recorded music market. However, the market share of music streaming differs between countries. Whereas in Sweden the music streaming market share is 66.5 per cent of the overall recorded music market, in Germany just 11.4 per cent of the recorded music revenue comes from music streaming sources. And Japan, the second largest recorded music market in world, lags behind with meagre 4.6 per cent. In the following, please read an analysis of the international music streaming for the time-span from 2011-2015.

Animation of the international music streaming markets, 2011-2015

Continue reading ‘The Music Streaming Market Revisited, 2011-2015’

19
May
16

Live Nation in the Digital Paradigm Shift

In the course of digitization new players entered the music industry changing the rules of the game. Such a player is Live Nation. Live Nation Entertainment is the result of the merger of the world’s largest music promotion company, Live Nation, and the world’s largest ticketing company, Ticketmaster, in 2010. The Ticketmaster-Live Nation merger marks the beginning of a new era in the music business, with all activities within the industry now being integrated, including live music events, venue operations, ticketing services, sponsorship and advertising sales, and artist management and services (Live Nation 2015: 4). In the following Live Nation’s business model and economic performance after the merger is portrayed and analysed.

Continue reading ‘Live Nation in the Digital Paradigm Shift’

31
Jan
16

The Global Music Publishing Market – An Analysis

In a Music Business World Wide article[1], music industry analyst Will Page calculated a value of US $11.34bn for the global music publishing market in 2014. The number comprises of US $7.55bn for the collection of performance fees, US $1.32bn for mechanical collections and US $0.35bn for private copying collections by CISAC[2] members and US $0.42bn for non-CISAC mechanical collections (e.g. Harry Fox Agency collections). Further US $1.70bn of revenue have to be added for music directly licensed by the publishers (“grand rights” and synchronisation rights).

 

Figure 1: The global value of the music publishing market in 2014

Figure 1 - The global value of the music publishing market in 2014

Source: After Music Business World Wide, “$25 billion: The best number to happen to the global music business in a very long time”, December 10, 2015 (retrieved January 19, 2016)

 

The analysis highlights that music publishing is as relevant as the recorded music industry with a global market volume of about US$ 15bn. Therefore, this blog post analysis the global music publishing market in a long-term perspective and investigates economic relevance of music publishing for the music majors – Universal Music Group, Sony Music Entertainment and Warner Music Group – as well as the structure of the global music publishing market.

Continue reading ‘The Global Music Publishing Market – An Analysis’

30
Jun
15

Music Streaming Revisited – the International Music Streaming Market 2014

Music streaming is on the rise. In the recent IFPI report “Recording Industry in Numbers 2014” IFPI CEO Frances Moore is cited with “Streaming is now a mainstream part of the modern music industry.” (IFPI 2015: 5) Indeed, global subscription streaming revenue increased by 39.0 per cent and ad-supported streaming revenue by 38.6 per cent in 2014. In 2014, the global music streaming market (ad-supported as well as subscription) has a volume of US $2.2bn, which is even bigger than the single track download market (US $1.9bn) (IFPI 2015: 9). Music streaming, therefore, accounts for nearly a third of the global recorded music market. However, the market share of music streaming differs between countries. Whereas in Sweden the music streaming market share is 70 per cent of the overall recorded music market, in Germany just 6.3 per cent of the recorded music revenue comes from music streaming sources. And Japan, the second largest recorded music market in world, lags behind with meagre 3.1 per cent.

In the following I would like to highlight the economic relevance of the music streaming market segment in an international comparison.

Continue reading ‘Music Streaming Revisited – the International Music Streaming Market 2014’




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