The Global Music Industry’s Revenue Increased for the 7th Year in a Row

This year’s edition of the International Federation of the Phonographic Industry’s annual report, “Global Music Report 2022,” details what transpired in the music industry around the world last year.

According to the research, the global music industry’s revenue increased for the seventh year in a row in 2021, totaling $25.9 billion. This year’s revenue is the highest of the millennium.

Streaming revenue increased by 24.3 percent to $16.9 billion, accounting for 65 percent of total income. Every region in the world saw an increase in streaming revenue. A 21.9 percent increase in paid subscription revenue was the driving force behind this. Paid streaming services had 523 million subscribers globally at the end of 2021, accounting for 47.3 percent of global revenue. Ad-supported streaming services account for the remaining 17.7% of the global revenue generated by streaming.

Physical sales, which currently account for 19.2% of global income, or $5 billion, are the next largest source of revenue after streaming. This represents a 16.1% increase over 2020 and the first increase in the physical market in 20 years. The return to physical retail, which was badly impacted by the COVID-19 epidemic in 2020, was the reason for this growth. CD sales increased for the first time this millennium, with Asia showing special interest. Vinyl sales increased by 51.3 percent in 2021, compared to a 25.9% increase in 2020.

Physical is followed by performance rights, which account for 9.4% of global revenue ($2.4 billion), up 4% from the previous year. This rise coincides with the international recovery from the COVID-19 pandemic.

Downloads and other digital, which currently account for 4.3 percent of global revenue, come in second after performance rights. Last year, this segment brought in $1.1 billion, down 10.7% from the previous year. As digital music consumption shifts from an ownership to an access model, this is the only channel that will see income drop in 2021. Downloads dropped 15.3% to $839.3 million, accounting for 3.2 percent of total revenue. Other digital, on the other hand, increased by 6.8%.

Synchronization is the final segment. With $549.1 million in revenue, it accounts for 2.1 percent of total revenue. As the world continues to recover from the COVID-19 epidemic, this category rose by 22% in comparison to 2020.

The United States, Japan, the United Kingdom, Germany, France, China, South Korea, Canada, Australia, and Italy are the top ten music markets in order. With the exception of China and South Korea moving positions and Italy returning to the top ten in place of The Netherlands, this is unchanged from 2020.

Asia has grown for the sixth year in a straight, with a 16.1 percent increase. The return to growth of the region’s largest market, Japan, was one of the reasons behind this. Following two years of decline, Japanese revenue increased by 9.3%. Asia’s revenues increased by 24.6 percent, excluding Japan’s growth. Asia accounted for 23% of the global market in terms of revenue. Asia was also responsible for 49.6% of global physical revenue in 2021, following a resurgence in physical sales.