The latest IFPI Global Music Report highlights positive news for the music industry, with a growth rate of 9% in 2022. One of the most significant findings is that every single market recorded growth for the second consecutive year, a first in the industry. China has also emerged as a top five market. However, the industry faces challenges such as maturing streaming markets, streaming manipulation, and the relationship with TikTok, which was not discussed during the session due to uncertainty about the platform’s long-term use of music.
Paid streaming subscriptions continue to drive growth, although ad-funded platforms still play a crucial role in the music ecosystem. The industry emphasizes the need to focus on the value of music and convincing consumers to pay for it, as 75% of revenue comes from paid subscriptions despite the majority of users being on ad-supported models.
Sub-Saharan Africa stood out as 2022’s star performer, experiencing growth of 34.7%, the highest among all regions. The diversity of genres and export potential beyond Afrobeats presents significant opportunities for the African music market.
Increasing average revenue per user (ARPU) in mature markets can stimulate growth, even if subscriber numbers slow down. The music industry looks to video streaming services, which have successfully increased prices, as a model for music subscription pricing that reflects inflation.
Artificial Intelligence (AI) is already transforming the music industry, with applications ranging from audience identification to new artist discovery and remixing old masters. Some artists, such as Giles Martin, have used AI technology creatively, such as remixing the Beatles album Revolver.
While the NFT market suffered a hit to its reputation due to speculation-driven activities, Warner Music sees NFTs as a massive opportunity to build relationships with core fans and create digital fan clubs. The metaverse, gaming, and other emerging areas also hold huge potential for monetizing music and engaging with audiences.
In a global streaming market saturated with content, breaking new acts becomes increasingly challenging. Speed in discovering and signing artists is crucial, and tools, data, and analytics aid the process. However, the concept of A&R (Artist and Repertoire) remains rooted in good ears, strong relationships, and belief in market opportunities and artists.
Latin American repertoire continues to have a global impact, with revenues in the region growing by 25.9% in 2022. Brazil and Mexico experienced significant growth, and Latin American influence is increasingly felt in the US market. Other markets, such as India and the MENA region, are also building their export potential and may soon influence global charts.
Overall, the music industry remains optimistic about the future, with continued growth, evolving technologies like AI, and emerging opportunities in new formats and markets.
