Music Industry Makes $26bn But Wants Streaming Prices To Rise

Global music revenues reached $26.6 billion (£21.7 billion) last year, the highest level since records started in the 1990s, thanks to the success of artists like Taylor Swift and BTS.

The industry’s earnings now come from streaming, which now makes up 67% of the increase.

According to trade group the IFPI, 589 million individuals paid for a subscription in 2018, up from 523 million in 2021.

However, labels suggest that income could be greater and advocate for higher prices.

Simon Robson, president of foreign markets for Warner Music, stated that it would be beneficial for music subscription prices to take inflation into account.

Since its 2009 debut, Spotify, the biggest streaming service in the UK, has maintained its £9.99 per month price for individual subscriptions. The majority of its rivals continue to use a comparable pricing scheme.

Robert Kyncl, CEO of Warner Music, recently proposed that the US rate be increased to $13.25 (£10.83), based on the $9.99 US debut price from 2011 that was indexed for inflation.

He told Music Week, “Music is undervalued, and this is not just my opinion; there are real statistics to support it.

“If you look at the US, users spend half as much per hour to listen to music as they do to watch movies and TV shows on streaming services. Thus, it is currently 50% discounted right there.

Universal Music executive Adam Granite responded that it “wouldn’t be appropriate to discuss any of our commercial partnerships specifically” when asked whether labels were aggressively pursuing price increases.

While this is going on, record labels are trying to “monetise other forms of music consumption” by granting song licenses to exercise startups like Peloton as well as video games like Fortnite and Roblox.

returning to pre-pandemic levels of live music

The highest-earning concert of 2022 was by Bad Bunny
Their remarks came as the IFPI reported that the global music business had grown for the eighth year in a row.

Physical format sales increased by 4%, bringing in $4.6 billion (£3.7 billion) in income.

In Asia, where the “idol” cultures of Japan and South Korea urge fans to purchase CDs and vinyl as keepsakes, nearly half of that number (49.8%) originated.

After two years of turmoil for the live music business, performance royalties increased by 8.6% to $2.5 billion (£2.04 billion), surpassing pre-pandemic levels.

The US continued to be the biggest music market in the globe, followed by Japan and the UK.

After sales there increased by 28.4%, China replaced France as the world’s fifth-largest market.

Because “China was almost entirely lost to piracy 10 years ago,” Mr. Granite said that the turnaround is especially encouraging.

Chart-topper Taylor Swift

Seven nations were represented in the top 10 artists of last year, which was a factor in the IFPI report’s emphasis on the growing international nature of music consumption.

Thanks to the success of her 10th album, Midnights, and the continued appeal of her back catalog, Taylor Swift was the largest seller of 2022.

Since the chart’s start ten years ago, Swift has finished atop it three times, first in 2014 and then again in 2019.

She dethroned the 2021 winners, the South Korean pop group BTS, who this time won second place. Seventeen and Stray Kids, who were ranked sixth and seventh in the top 10, were two additional K-pop groups to crack the top 10.

The most popular single of the year according to sales was As It Was by Grammy and Brit Award winner Harry Styles.

Another seven of the top 20 songs were written by UK artists, including the sleeper success Heat Waves by Glass Animals at number two, Cold Heart by Elton John and Dua Lipa at number four, and additional songs by Ed Sheeran, Adele, and Dua Lipa that charted.

Due to its inclusion in the science fiction series Stranger Things, Kate Bush’s 1985 hit single Running Up That Hill (A Deal With God) finished the year as the 16th most popular song.

Un Verano Sin Ti, the first Spanish-language album to top that list, was the number one album in the world according to Puerto Rican superstar Bad Bunny.

Midnights by Swift came in second, and Harry’s House by Harry Styles came in third.

Music Industry Makes $26bn But Wants Streaming Prices To Rise

Global music revenues reached $26.6 billion (£21.7 billion) last year, the highest level since records started in the 1990s, thanks to the success of artists like Taylor Swift and BTS.

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