Global recorded-music and music publishing market share results for 2018

Music & Copyright‘s annual survey of the recorded-music and music-publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. Recorded-music leader UMG maintained the top spot, with an increased share of digital sales fully offsetting a decline in the company’s share of physical sales. UMG also increased the gap on second-placed SME, with the latter suffering a fall in both its digital and physical shares. WMG’s share of digital sales edged down last year, but a higher share of physical sales boosted the company’s overall recorded-music market share. A repeat of last year saw independent record companies collectively account for the biggest share. Sony was unable to repeat the record year of 2017 for music publishing, with the company suffering a dip in share. UMPG registered the highest share gain of all the major music publishers, but the collective share of the independent sector accounted for the biggest share of the music publishing pie.

Share gains for UMG and WMG at SME’s expense
UMG had a 29.8% share of combined physical and digital recorded-music trade revenue last year, up from 29.7% in 2017. For digital revenue only, UMG’s share increased, to 32.4%, from 32%, while its physical share was down, to 23.4%, from 25.4%.

Record companies, physical- and digital-revenue market shares, 2017 and 2018
Source: Music & Copyright

SME was the second-largest record company, although its combined physical/digital market share was down last year, to 19.9%, from 21.9% in 2017. For the second consecutive year, SME registered a year-on-year fall in both physical and digital market shares. Furthermore, the company’s share of all recorded-music trade revenue, which includes licensing and other revenue as well as income from physical and digital music sales, was down to 20.5%, from 22.3%.

Record companies, total recorded-music-revenue market shares, 2017 and 2018
Source: Music & Copyright

The smallest of the three majors, WMG, experienced a reversal of its 2017 results, when the company’s digital share was up and its physical share down. Last year. WMG’s digital share slipped slightly, to 17.7%, from 18.1%, while its physical share grew to 13.4%, from 12.8%. Overall, WMG’s combined physical/digital share increased, to 16.5%, from 16.2%, and its total revenue share was also up, to 16%, from 15.8%.

Aside from the changes in the majors’ shares, independent record companies’ combined physical/digital revenue share was higher than the leader last year, at 33.8%. The independent company sector increased its share of both physical and digital revenue, but there remained a sizable difference between its physical and digital shares.

Another positive year for music publishing
In line with the way in which Music & Copyright determines global recorded-music market shares, music publishing market shares are also based on revenue received by each company. Music & Copyright has calculated that global music publishing revenue grew 11.4% last year, to $5.47bn, from $4.92bn in 2017. Sony was unable to repeat its record performance of 2017 and suffered a decline in global publishing share last year, to 26%, from 27.3%. Sony took the top spot in 2013, following the purchase of EMI Music Publishing (EMI MP) by a Sony-led consortium in 2012. Sony acquired an approximate 60% of the interest in EMI MP in November 2018. In addition to revenue from EMI MP, the company’s publishing share includes Sony/ATV earnings as well as income from Sony Music Publishing Japan.

Music-publishing companies, revenue market shares, 2017 and 2018
Source: Music & Copyright

UMPG was the second-largest music publisher last year. Music & Copyright estimates the company’s share increased, to 20.2%, from 19.5% in 2017. Furthermore, UMG registered the biggest share growth of the three major publishers. Third-placed Warner/Chappell’s share was up last year, to 12.3%, from 12%. The collective share of independent music publishers was also up, rising to 41.4%, from 41.2%.

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New issue of Music & Copyright with Canada country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

Difficult year for SME as UMG, WMG, and the indies make recorded-music and publishing share gains
Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. Recorded-music leader UMG maintained the top spot, with an increased share of digital sales fully offsetting a decline in the company’s share of physical sales. UMG also increased the gap on second-placed SME, with the latter suffering a fall in both its digital and physical shares. WMG’s share of digital sales edged down last year, but a higher share of physical sales boosted the company’s overall recorded-music market share. A repeat of last year saw independent record companies collectively account for the biggest share. Sony was unable to repeat the record year of 2017 for music publishing, with the company suffering a dip in share. UMPG registered the highest share gain of all the major music publishers, but the collective share of the independent sector accounted for the biggest share of the music publishing pie.

GEMA sees third consecutive year of collections over €1bn
German authors’ society GEMA has reported its financial details for 2018. Although collections and distributions were unable to match the previous year’s record levels, the underlying performance was positive. Collections in 2017 were inflated by one-time payments, and the exclusion of those extras meant total income last year registered healthy growth. Public performance and broadcasting, the two biggest collection sources, recorded another year of modest growth, while digital revenue grew sharply. The private copying total more than halved, but the 2017 collection figure was inflated by extra payments, so a year-on-year comparison is not strictly accurate. Overseas income edged down, while mechanicals continued to suffer from lower sales of physical formats. Total expenses were slightly reduced, but the decrease in income meant the cost rate increased.

TikTok gets serious with music as it clocks up the hits
Short-video sharing platform TikTok has seemingly come from nowhere to garner a seriously large following among young demographics around the world. While the service does lean heavily on record companies’ existing catalogs, it has also proved adept at enabling its video “creators” to unearth offbeat atypical tracks that then get serious traction. And TikTok has recently demonstrated that it can not only break emerging artists but also serve as a platform that delivers hits in the mainstream charts. Now it is up to TikTok to take advantage of those capabilities to become a leading music discovery channel in its own right, while record companies need to put resource into the video network as part of their A&R efforts.

Canada country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Canada music industry report. Canada is one of the world’s bigger music markets. Although ever present in the top 10, the country lost a couple of places last year, slipping from seventh to ninth. Canada was overtaken by China and Australia, with those two countries registering higher year-on-year growth rates in trade sales. Recorded-music consumption levels were up last year, but the increase in trade revenue was more modest. Although streaming income continued to rise, a big slump in sales of CD albums dented the overall market performance. UMG maintained its market share lead over second-placed SME with the former gaining share and the latter suffering a decline. Canada’s live sector is thought to have registered a positive year with attendance at music events up year on year. Preliminary results from SOCAN show royalty collections were up for the sixth year in a row with the level of royalties collected and distributed breaking previous records.

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Streaming growth boosts R&B/hip-hop share of global recorded-music sales

New research published by Music & Copyright has revealed that retail sales of R&B/hip-hop jumped 24.1% in 2017, to $2.59bn, from $2.08bn in 2016. The genre’s share of total retail sales increased, to 11.9%, from 10.4%. Furthermore, R&B/hip-hop’s retail share has more than doubled in the last 10 years. Pop and rock remain the two most popular music genres. Consumer spending on pop music increased 3.9%, to $6.79bn, from $6.53bn, while spending on rock music grew 2.5%, to $5.25bn, from $5.12bn. In terms of revenue share, pop accounted for 31.1% of global music retail sales, with rock taking a 24.1% share.

Global, recorded-music retail sales by genre share, 2017

Source: Music & Copyright

“The simple explanation why R&B/hip-hop sales have risen so much in the last few years is that streaming use has grown sharply. The streaming audience is skewed toward a younger demographic, and R&B/hip-hop is more popular among younger consumers,” said Simon Dyson, editor of Music & Copyright and Practice Leader of Ovum’s Music team. “National trade associations that have published sales by genre and retail channel have shown that the streaming share for R&B/hip-hop can sometimes be more than double the genre’s share of more traditional format sales. With streaming forecast to continue rising for the next few years at least, the future for R&B/hip-hop has never looked so good.”

Note to editors
The classification of any artists’ music into a single genre is fairly arbitrary and can differ between record company, music retailer and national trade association. Categorizing music within a genre can often have multiple influencing factors such as musical technique, style, context, target audience and geographical origin. Moreover, many genres have sub-genres that can often overlap others. For the purposes of this research, Music & Copyright has limited itself to the most commonly used genre categories by most national trade associations when presenting a breakdown of sales by genre.

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UMG and WMG make recorded-music market share gains, Sony outperforms in publishing

Music & Copyright’s annual survey of the recorded-music and music publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. Recorded-music leader UMG maintained the top spot with an increase in both its physical and digital market shares. Second-placed SME suffered a dip in its recorded-music share, while smaller major WMG continued its upward trend and registered a share increase. A repeat of 2016 saw independent record companies collectively account for the biggest share. Sony remained the leader in terms of corporate music publishing control after registering the best year in the company’s history. UMPG suffered a slight fall in share, while Warner/Chappell and the collective share of the independent publishing sector were unchanged.

UMG extends recorded-music lead
UMG had a 29.7% share of combined physical and digital recorded-music trade revenue last year, up from 29% in 2016. For just digital revenue, UMG’s share stood at 32%, while its physical share was 25.4%.

Record companies, physical- and digital-revenue market shares, 2016 and 2017
Source: Music & Copyright

SME was the second-largest music company, although its combined physical/digital market share slipped last year, to 21.9%, from 22.9% in 2016. SME registered a year-on-year fall in both physical and digital market shares. The company’s share of all recorded-music trade revenue, which includes licensing and other revenue as well as income from physical and digital music sales, was also down, to 22.3%, from 23.2%.

Record companies, total recorded-music-revenue market shares, 2017
Source: Music & Copyright

The smallest of the majors, WMG, experienced a mixed year in digital and physical shares. The company’s digital share increased, to 18.1%, from 17.6%, while its physical share edged down, to 12.8%, from 13.1%. WMG’s combined physical/digital share grew, to 16.2%, from 15.8%, and its total revenue share was up, to 15.8%, from 15.4%.

UMG was the single biggest record company, but independent record companies’ combined physical/digital revenue share was higher than the leader last year, at 32.2%. The independent company sector increased its share of both physical and digital revenue, but there remained a sizable difference between its physical and digital shares.

It is worth pointing out at this stage that following last year’s review of our music publishing share methodology, we have made similar changes to the way we determine recorded-music shares. Our calculations are now based on a much more comprehensive assessment of the recorded-music sector and allow for greater accuracy in the standings of the three majors and the independent companies. The change has meant we have restated the previously published 2016 figures.

Positive year for music publishing
In line the way in which Music & Copyright determines global recorded-music market shares, music publishing market shares are also based on revenue received by each company. Music & Copyright has calculated that global music publishing revenue grew 11.2% last year, to $4.92bn, from $4.42bn in 2016. Sony increased its leading position following the best year in the company’s history. Earnings were boosted by a record growth in streaming. Moreover, the company published the IFPI’s top three artists of last year, Ed Sheeran, Drake and Taylor Swift. Sony accounted for 27.3% of global publishing revenue, up from 27% in 2016.

Music-publishing companies, revenue market shares, 2016 and 2017
Source: Music & Copyright

UMPG was the second-largest music publisher last year. Music & Copyright estimates the company’s share edged down, to 19.5%, from 19.8% in 2016. Third placed Warner/Chappell’s share was unchanged at 12%. Also unchanged last year was the indie share. Independent music publishers have long dominated music publishing and continue to compete well with the majors for major artists’ attention. Music & Copyright estimates that independent companies accounted for 41.2% of publishing revenue in 2017.

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New issue of Music & Copyright with Finland country report

The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

UMG and WMG make recorded-music market-share gains; Sony outperforms in publishing
Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. Recorded-music leader UMG maintained the top spot, with an increase in both physical and digital market shares. Second-placed SME suffered a dip in its recorded-music share, while smaller major WMG continued its upward trend and registered a share increase. A repeat of 2016 saw independent record companies collectively account for the biggest share. Sony remained the leader in terms of corporate music publishing control, after registering the best year in the company’s history. UMPG suffered a slight fall in share, while Warner/Chappell and the collective share of the independent publishing sector were unchanged.

Return to growth for Dutch neighboring rights society SENA
SENA, the Dutch collection society representing performers and producers (record companies), has reported a rise in total licensing income for 2017. Domestic receipts increased for the third consecutive year and more than offset a second annual dip in international collections. Total domestic invoiced licensing revenue registered growth, but overseas invoiced revenue fell. In contrast, distributions in the Netherlands last year were down, while payments abroad were up. General licensing was the biggest collection source for SENA members, ahead of broadcasting. SENA noted in its annual report that the first full year of operation of its joint venture service center created with the authors’ society BUMA has brought the expected efficiency benefits. SENA also said that greater cooperation with BUMA on other joint initiatives is a possibility.

Regulation is just the ticket for live music events
Regulators around the world are starting to crack down on event ticket abuses. The key targets in many markets are the sharp practices of secondary ticketing operators, which have been the cause of much consumer complaint for some time. But also in regulatory sights is the widespread lack of price transparency and the use of automated bots to sweep up tickets for resale. And while the live music sector is welcoming of such regulation, there’s also an opportunity for private companies to deploy technological solutions to further help live music fans.

Finland country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Finland music industry report. Finland is outside of the global top 20 for revenue from recorded music. But, despite its small size, the country is a market leader in the digital transition from ownership to access. Subscription services already account for more than two-thirds of recorded-music trade earnings in the country and this share is expected to rise further as the reliance on physical formats continues to drop and sales of downloads disappear. The streaming boom means digital trade sales now generate close to 90% of the total market. UMG enhanced its leading position last year with a modest rise in market share while SME took second place from WMG. Royalty earnings collected by authors’ society TEOSTO were down slightly year on year. However, continued growth in digital collections meant the revenue stream increased its share of total royalty receipts to 13.7%. Indications suggest Finland’s live sector registered a good year. Despite lower ticket sales to festivals, attendance at events increased year on year.

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WMG makes recorded-music market share gains, while indies extend publishing lead

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed the changes in global market share for the three major music groups and the independent sector. For the second consecutive year, recorded-music leader UMG lost market share, while smaller major WMG closed the gap on second-placed SME. Sony remained the leader in terms of corporate control of music publishing, though its share has fallen for two straight years. Little change in share for second-placed UMPG meant the company narrowed the gap with Sony. The collective shares of the independent publishing sector registered the biggest publishing share increase.

Shifting market shares, but majors still dominate
According to Music & Copyright, UMG had a 32.8% share of combined physical and digital recorded-music trade revenue last year, down from 33.7% in 2015. For physical revenue only, UMG’s share stood at 30.2%, while its digital share was 34.6%.

Record companies’ physical- and digital-revenue market shares, 2015 and 2016

Source: Music & Copyright

SME was the second-largest music company, with a combined physical/digital market share of 22.2%, down from 22.6% in 2015. SME registered a year-on-year fall in both physical and digital market shares. The company’s share of all recorded-music trade revenue, which includes licensing and other revenue as well as income from physical and digital music sales, was also down, to 22.4%, from 22.8%. The smallest of the majors, WMG, was the only one of the three to register share increases last year. The company’s share of revenue from physical recorded-music sales stood at 17% in 2016, up from 16.3% in 2015. For digital, the share grew to 18.9%, from 18.2%. WMG’s combined physical/digital share increased, to 18.1%, from 17.3%.

The independent record companies’ share of combined physical/digital revenue was up in 2016, to 26.9%, from 26.4%. Although the company sector increased its share of both physical and digital revenue, independents’ share of physical formats remained higher than their digital share.

Warner Chappell and indie sector register share gains
Sony maintained its leading position in the publishing sector last year despite a second consecutive dip in market share. The company accounted for 27% of global publishing revenue, down from 28.3% in 2015. Sony took the top spot in 2013, following the purchase of EMI Music Publishing by a Sony-led consortium in 2012. In addition to revenue from EMI MP repertoire administered by Sony, the company’s publishing share includes Sony/ATV earnings as well as income from Sony Music Publishing Japan.

Music-publishing companies’ revenue shares, 2015 and 2016

Source: Music & Copyright

It is worth noting that based on a more comprehensive assessment of the publishing sector, we have restated the previously published 2015 figures. Although some shares have been changed, none of the publishers’ annual performances has been affected.

UMPG was the second-largest music publisher last year and closed the gap with Sony, though its share edged down slightly, to 19.8%, from 20% in 2015. Third-placed Warner Chappell was the only major publisher to register an increase last year, with the company’s share rising to 12%, from 11.4%.

Independent music publishers have long dominated music publishing and continue to compete well with the majors for major artists’ attention. Last year proved to be no exception. Music & Copyright estimates that independent companies accounted for 41.2% of publishing revenue, compared with 40.3% in 2015.

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Music & Copyright is published by Ovum.

WMG makes biggest recorded music market share gains of 2015; indies cement publishing lead

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed changes in global market share for the three major music groups and the independent sector. Recorded music leader UMG lost market share in 2015, but WMG, the smallest of the three majors, made the biggest gains. SME experienced a slight increase in its share. Sony/ATV remained the leader in terms of corporate publishing control, despite its share edging down. UMPG was the only major publisher to increase its market share. However, the collective share of the independent publishing sector registered the biggest share rise, with leading indies BMG and Kobalt making impressive gains.

Modest movement in record company market shares
Following a couple of years of consolidation, restructuring, and company selloffs in both the recorded music and music publishing sectors after the breakup of EMI Music Group, last year could be described as much more stable for market share. The sale of EMI’s record and publishing divisions impacted the market share figures for the major music groups in 2014, but with both sectors more settled, market share changes in 2015 were modest.

UMG maintains recorded music lead
According to Music & Copyright, UMG had a 33.5% share of combined physical and digital recorded music trade revenue last year, down from 34.1% in 2014. For physical revenue only, UMG’s share stood at 31.6%, Its digital share stood at 35.6%.

Record companies, physical and digital revenue market shares, 2013–15 (%)
Recorded shares 2015
Source: Music & Copyright

SME was the second-largest music company, with a virtually unchanged combined physical/digital market share of 22.6% in 2015. SME’s physical and digital market shares edged up last year compared with 2014. The smallest of the three majors, WMG, experienced the biggest share gains of the majors. The company’s share of revenue from physical recorded music sales stood at 16.3% in 2015, up from 15.7% in 2014. For digital, its share gain was marginally lower, rising to 18.2% from 17.7%. WMG’s combined physical/digital share grew, to 17.1%, from 16.7%.

The independent record companies’ share of combined physical/digital revenue rose last year, to 26.8%, from 26.7% in 2014. The sector increased its share of physical revenue but its digital share edged down. The independents’ share of physical formats remained higher than its digital share.

No change in major publisher rankings
Sony/ATV held its lead last year despite a market share decrease. The company accounted for 28.3% of global publishing revenue, down from 29.5% in 2014. Sony/ATV took the top spot in 2013 following the purchase of EMI Music Publishing by a Sony-led consortium in 2012. Although Sony/ATV and EMI MP are still separate companies (with EMI MP repertoire administered by Sony/ATV), Music & Copyright has combined the companies’ shares.

Music publishing companies, revenue market shares, 2013–15 (%)
Publishing
Source: Music & Copyright

UMPG was the second-largest music publisher last year with a 23.1% share. Of the three major publishers, UMPG was the only one to register a share increase. Third-placed Warner Chappell’s share edged down in 2015, to 12.4%.

Independent companies extend their lead
Independent music publishers have long dominated music publishing and compete well with the majors for major artists’ attention. Last year, the independent music publishing sector experienced an increase in share. Music & Copyright estimates that independent companies accounted for 36.2% of publishing revenue, compared with 35% in 2014.

If you want to know more about Music & Copyright then follow the below links.

Music & Copyright is published by Ovum.