World music copyright generated $39.6 billion in 2021, up 18% from the earlier 12 months, in line with the most recent report by Will Web page, business analyst and former chief economist for Spotify. “The post-pandemic fallout has seen client subscriptions and ad-funded streaming proceed to soar,” he wrote, “whereas business-to-business licensing by CMOs [collective management organizations] has solely partially recovered.”
Streaming accounted for 55% of world copyright income, up from 52% in 2020. The business’s shift to streaming has been dramatic: jSimply 5 years in the past, in 2017, streaming accounted for simply 30% of world music copyright revenues.
Web page brings collectively 4 sources of business information for his evaluation: IFPI’s annual World Music Report, CISAC’s annual World Collections Report, Music & Copyright’s evaluation of music publishing and MIDiA Analysis’s estimate of royalty-free music licensing companies similar to Epidemic Sounds — a brand new addition to his research this 12 months. He removes double counting within the experiences, similar to some mechanical royalties which are counted as income by each file labels and publishers.
Report labels’ income grew to $25.8 billion in 2021 from $21.3 billion in 2020 and $19.8 billion in 2019. When it comes to market share, file labels improved their proportion of world income to 65.2% in 2021 from 63.4% in 2020 and 60.6% in 2019 — an indication of wholesome client spending on subscription companies similar to Spotify and Apple Music.
On the flip facet, publishers’ share of world income dropped to 34.1% in 2021, from 35.7% the 12 months earlier than. Nonetheless, as Web page factors out, that is extra equitable than different factors in historical past. In 2001, when labels’ revenues had been peaking on the top of the CD gross sales increase, publishers acquired simply 23% of revenues. In 2014, nonetheless, when label revenues had deteriorated, publishers had been rising modestly and CMOs reported “record-breaking collections” as much as 45% of world revenues. Report labels grew sooner than publishers over the following seven years, nonetheless.
Report labels’ share of income elevated as a consequence of “the restoration in client spend on music,” in line with Web page, “which historically favors labels over publishers.” The pattern was amplified by the pandemic’s influence on enterprise licensing – similar to efficiency rights blanket licenses for retail, radio and live performance venues – that favors publishers over labels.
Had the pandemic not occurred, performing rights earnings would have seemingly grown at 6% a 12 months and would “arguably” be $1 billion better at present – a attainable $9.4 billion slightly than the precise $8.4 billion. Then again, wrote Web page, “had the pandemic not occurred, streaming could by no means have accelerated the best way it did.”
Royalty-free music is a small a part of the worldwide music enterprise however rising rapidly because of the rising want for simply licensed music on on-line platforms similar to TikTok, Instagram and YouTube. MIDiA Analysis put the worth of royalty-free music – which means the license is a one-time buy with out residual royalties – at $250 million in 2021.
