Music industry

Global music industry grew 18.5% in 2021 thanks to increased streaming: IFPI

Worldwide recorded music industry revenues by year. Photo credit: IFPI

According to the International Federation of the Phonographic Industry (IFPI), the global recorded music industry saw an 18.5% year-over-year revenue increase in 2021 due to double-digit increases. streaming, physical and sync revenue figures.

The IFPI has revealed these and other remarkable statistics in its new World Music Report. According to the document, the global recorded music industry generated $25.9 billion in 2021 (up 18.5% year-on-year, as mentioned), up from an initially reported $21.6 billion (and a growth of 7.4% over one year) in 2020.

For additional reference, the RIAA claimed in its own 2021 report that the music industry in the United States made approximately $14.99 billion at “estimated retail value” over the year, or 23, 4% more than in 2020.

Going back to the IFPI breakdown for 2021, however, the text says overall streaming revenue improved 24.3% year-on-year and accounted for 65% of total revenue, down from 62%. . Paid subscription users reached 523 million and, as in previous years, accounted for a substantial share (47.3%) of recorded music industry revenue.

Bearing in mind the well-documented resurgence of vinyl and even CDs, the IFPI relayed that “for the first time in 20 years, there was growth in the physical market”.

The physical income of the global recorded music industry increased by 16.1% compared to 2020 (after falling 5.3% in 2019 and 4.7% in 2020), according to the analysis, while that CDs recorded an annual gain “for the first time this millennium”.

“There has been particularly strong engagement with the format in Asia,” the report said, and the RIAA previously clarified that 2021 brought the first increase in CD revenue in the United States since 2004, with units shipped approaching 47 million, up nearly 50% year-on-year. Meanwhile, vinyl saw continued commercial growth on the global stage in 2021, according to IFPI, with revenue increasing 51.3% year-over-year.

Recorded music revenue attributable to sync also hit double-digits (even 22%) in 2021, as noted at the start, reaching $549.1 million worldwide, according to IFPI. Geographically, the same source reported that music industry revenue jumped in every region monitored in 2021 (including separate categories for MENA and Sub-Saharan Africa for the first time).

Breaking down the music industry revenue increases in 2021 by region, IFPI placed the top four percentages at 35% for the MENA region (95.3% market share for streaming, with a market total of 89.5 million dollars), 31.2% for Latin America (Brazil and Mexico). accounted for 66.5% of sales), 22% for the United States and Canada, and 16.1% for Asia (producing 49.6% of global physical sales).

Europe is next at 15.4%, compared to 9.6% for Sub-Saharan Africa (ad-supported streaming grew 56.4% year-over-year) and Australasia 4.1%. Given these trends, Japan went from a 2% decline in revenue in 2020 to 9.3% growth in 2021 and remained the second largest music market in the world, behind the United States and ahead of the UK.

Italy (27.8% year-on-year growth) has quietly returned to the IFPI’s list of the 10 most important music markets, and the most notable move has been China’s rise to the sixth place, placing behind France but overtaking South Korea and again ranking above Canada. and Australia.