Recorded Music Market 2019 A Thriving and Transforming Industry
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The 20,000 Foot View: With five successive years of growth, the recorded music market has transitioned from a recovering industry into a thriving business. The stars are aligning, with growing consumer demand, business model innovation, a golden era for independent artists and surging interest from institutional investors. 2019 more than just picked up where 2018 left off; it was a year of accelerated growth and illustration of a market that, while dominated by streaming, has many other strings to its bow.
- Global recorded music revenues reached billion, up billion from 2018
- Streaming was again the key source of growth, up year-on-year (YoY) to reach billion, representing of all label revenues
- However streaming growth slowed compared to 2018, growing less in both percentage and absolute terms, adding million less new revenue
- Legacy formats (physical and downloads) were down billion, nearly half the decline registered in 2018
- Universal Music was the big winner in 2019, adding more revenue million) than Warner Music and Sony Music combined million)
- Sony Music significantly improved on its 2018 performance with annual growth, but lost ground to Warner Music which grew by
- In 2015 Warner Music’s recorded music revenue was just of Sony Music’s, and at the end of 2019 it was – just million separated the two labels in 2019
- Sony Music was the only major to add more streaming revenue in 2019 than in 2018
- Independent label revenue grew by outperforming both Sony and Warner
- Artists direct was the fastest-growing segment again, growing to reach million, adding more revenue in 2019 million) than in 2018 million)
- Universal Music was the only major label to gain market share in 2019, up from in 2018 to for FY 2019 – its highest share since 2015
- Artists direct was the only other segment to gain overall market share, adding points to reach market share
- Combined, artists direct and independent labels had a market share in 2019, up points from 2017 and points from 2015
Companies and brands mentioned in this report: ADA, Believe, BMG, CD Baby, Concord, Downtown Music Holdings, Fuga, Kobalt, Level, Sony Music, Spotify, Tencent, The Orchard, Universal Music Group, Warner Music Group
- All revenue values referenced in this report are in USD with all conversions from local currencies calculated taking the average quarterly exchange rate for each quarter of the year. No constant currency values are used in this report.
- Independent revenue is measured on a distribution basis, not an ownership basis. Therefore, independent revenue that is distributed via a major record label or a wholly owned major label distributor will appear in the revenue of the respective major record label