It has been a fruitful year for the music businesses across the world. The year of 2018 has seen a significant growth in the streaming business which includes bigwigs such as Spotify, Amazon Music, Apple Music and others. While the streaming platform brought in good business, the record industry reaped commendable success in the current fiscal.
Reports point out that streaming has now become the biggest contributor to the global recorded music business. Whereas, the live music industry has had a rather floating year. In India, the music industry has grown and various reports reflect the increase in consumption of music in the country.
Apart from the record industry, the worldwide concert industry saw a record-setting $10.4 billion spent across 152.1 million tickets; $2 billion of this money was spent on the top-10-grossing artists alone.
Digging further, Music Plus has put together a few key music industry insights from 2018 – from developments in the music business to the new directions the industry has been treading on – here’s the story so far:
94% of consumers listen to music with 20 hours per week
According to the Nielsen Music report which speaks on the Indian music industry, not only is music a universal part of the country’s culture (94% of the Indian online population listens to music), its associations to film and video are remarkably influential.
71% of online consumers consider music as an important part of their lives. 94% listen to music (either primary listening, in the background, or at live music events throughout the year) with 20 hours per week being the average time spent listening to music either as a primary activity or in the background. Whereas in the US, 90% of the population listen to music averaging about 32 hours a week.
96% of Indian music consumers listen to licensed music in 2018
The International Federation of Phonographic Industry (IFPI), the trade body for the international record business, released the Music Consumer Insight Report 2018 which examined the consumption of recorded music among the users aged 16-64 years in the world’s top 18 music markets.
According to the report, the Indian music market has been steadily evolving. It states that 96% of music consumers in India preferred listening to music on their smartphones, highest compared to the other countries. In the age group of 16-24 years, 99% of the consumers listened to music on their smartphones. As the country is slowly inching towards streaming services and subscription models, 96% of the music consumers in India listen to licensed music, while 95% listened to music through on-demand streaming.
Indian music industry to grow by 15.5% by 2023
According to the KPMG (Klynveld Peat Marwick Goerdeler)’s Indian Media and Entertainment Report 2018, the size of the Indian music industry in 2018 is reported as ₹14.4 billion which is 14.7% more when compared to the size of the industry in 2017. The report also projected that the size of the industry will grow by 15.5% by 2023 which will be around ₹29.6 billion.
The Indian music industry continues to see the recovery in recent years largely on the back of quickly expanding digital consumption and distribution particularly since the rollout of 4G. Data penetration and increased use of smartphones are two crucial contributors towards the growing consumption of music on digital platforms.
Global live music industry to be worth $31 billion by 2022
In a study by PriceWaterHouse Coopers (PwC), it was reported that the live music industry is expected to project a significant growth in the next few years. Analysing the latest report by the Global Entertainment and Media Outlook, PwC states that the live music revenue will increase at a Compound Annual Growth Rate (CAGR) of 3.3% by 2022. This growth includes ticket sales and sponsorship.
The calculation reveals that the live music industry’s total revenue will touch $31 billion in the next four years. In 2017 alone, the live concert industry generated 16% more revenue over 2016, bringing in $5.7 billion.
Two out of three users discover new artists on social media
A new study from MusicWatch underlined the contribution of music on social media platforms. The study highlighted that nine out of ten regular social media users engage with music or artist-related activities.
Two out of three (63 percent) users discover new artists on social media whereas almost 60 percent of social media users visit streaming services to listen to music after they see an update, tweet or post.
The research highlights the significance of music to the social platforms where 53 percent of Twitter users view or interact with trending subjects or want to view posts from friends.
Approximately the same number, 51 percent use Twitter to follow or get updates from music artists and bands.
Ed Sheeran’s Divide tour made $432m in 2018, third highest-grossing tour ever
According to Pollstar’s year-end special features report on Top tours, ticket sales charts, industry pros weigh in 2018, the global landscape of live entertainment in 2018 includes some of the biggest names in the business.
Pollstar’s Top 100 World Wide tours totalled $5.6 billion with 59.8 million tickets sold, compiled from 3,691 event records and top 100 North American tours totalled $3.7 billion with 40 million tickets sold, compiled from 3,025 event records.
The report brought to light new figures supplied by box office monitor Pollstar, out of which stood out the worldwide concert industry’s record-setting $10.4 billion earned from 152.1 million tickets in 12 months.