The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.
Growth for global royalty collections continues at reported and constant currency rates
The world’s top 20 biggest collective management organizations (CMOs) registered an increase in collections last year at both reported and constant currency exchange rates. The listing, which includes just those CMOs that have published collection results, shows only three of the 20 registered a fall in collections compared with 2016. As always, currency fluctuations affected some CMOs more than others, and overall the growth rate last year of the combined 20 was higher at reported than at constant rates. SACEM remained the leader in terms of total revenue, with GEMA maintaining second place. The US is the clear leader in terms of collections at country level, with CMOs ASCAP and BMI recording record years for collections. Europe is the biggest region, accounting for close to 60% of the combined top 20 collection total.
Technology innovation driving live sector growth
Live music is a growth business. Global spending on ticket sales to live events has risen annually for several years, and forecasts suggest growth is set to continue. Although the live and recorded-music sectors are inextricably linked, the fortunes of the two industries were markedly different during the first part of this century. Recorded music’s transition from a physical to digital business got off to a very shaky start but, after a lengthy period of decline, spending is on the up. Technology developments enabling the shift from ownership to access have transformed recorded-music sales, and rising numbers of consumers are signing up to the likes of Apple Music, Deezer, and Spotify. The live sector has grown steadily and ticket sales to artist tours and festivals are largely positive. However, the industry is not without its difficulties. But, in common with the developments in recorded-music distribution, technology innovations are providing the live sector with an answer to its problems.
Access shift set to benefit the biggest and smallest markets
Ovum has updated its forecasts for retail sales of recorded music. Like last year’s projections, the main conclusion is that the recorded-music sector is firmly a growth market, and Ovum expects sales in each of the years up to and including 2023 to rise. By the end of the forecast period, retail sales will have risen for nine consecutive years. Virtually all developed markets are benefiting from rising consumer interest in subscriptions and streaming and, perhaps most importantly for the sector, many of the much-vaunted and piracy-dominated emerging markets will start to show their worth. Subscriptions are firmly the biggest recorded-music category and will account for almost two-thirds of recorded-music revenue in 2023. Ovum is still expecting the growth rate for recorded-music sales to slow over the next five years as the music subscription sector in most developed markets reaches maturity. But many markets lost to piracy are now being brought to life and are likely to play an increased part in the longer-term recorded-music market future.
Poland country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Poland music industry report. Poland is Eastern Europe’s second largest recorded-music market behind Russia. However, the country is the region’s leader for trade earnings from the sale of physical formats and revenue from performance rights. Although high levels of piracy have restricted efforts to establish a digital sector, rising consumer interest in streaming and subscriptions has meant digital is accounting for an increasing share of overall trade sales. Positive economic results have also boosted most music sectors in the country. Poland is unique in the European Union (EU) for being the only country not to have fallen into recession following the global financial crash 10 years ago, and the country’s economy is one of the EU’s success stories.
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