Tagged: market share

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.

New issue of Music & Copyright with Russia country report

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

WMG makes biggest recorded music market-share gains of 2015; indies cement publishing lead
Music & Copyright’s annual survey 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.

TEOSTO reports record year for royalty collections in Finland
Finnish authors’ society TEOSTO has reported a record year for royalty collections from the use of music in Finland. But the total amount of royalties collected in Finland, which also includes performance and mechanical reproduction royalties collected through other organizations and remuneration for public lending and private copying, was lower in 2015 than in 2014. The decrease was caused by a big drop in private copying income as a result of a change in the way the income source is administered. Broadcasting accounted for the biggest share of domestic performing rights. Despite a big rise in digital collections, the income source remains a minor income stream for local authors and publishers.

Live performance video streaming moves towards the mainstream
Live performance video streaming is beginning to establish itself as a mainstream music segment. Leading US live entertainment group Live Nation looks set to become a major broadcast player after successfully rolling out Live Nation TV on Yahoo, with music festival streaming likely to become a key part of its portfolio. Video games platform Twitch.tv is also well placed in the space, given its large audience of electronic dance music (EDM) lovers. Smaller outfits see live streaming as a promising opportunity too: Tidal is busy establishing itself as a broadcaster, to market its core streaming service to consumers, while streaming apps providers are carving out niches as low-cost providers for artists looking to air their live performances.

Russia country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed Russia music industry profile. Russia’s two main music industry sectors, recorded and live, have had contrasting fortunes for much of this century. Recorded music sales had struggled to reach anything close to their potential given the size of the Russian population, while the live sector went from strength to strength. Now, the opposite is happening: Recorded music sales are rising in contrast to the live sector, which has been hit by the devaluation of the ruble and problematic relations with the West. Last year record company earnings benefitted from a surprise increase in revenue from the sale of physical formats. Although digital income was largely unchanged, revenue from subscription services registered a big rise, suggesting music access services are starting to resonate with consumers.

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

Music & Copyright is published by Ovum.

Recorded music market share gains for WMG in 2014, Sony/ATV is the publishing leader

The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed that recorded-music leader UMG lost market share in 2014, mainly as a result of the sale of the Parlophone Label Group (PLG) to WMG in 2013, which formed part of EMI Recorded Music acquisition requirements. UMG’s loss was WMG’s gain and the smallest of the three majors narrowed the gap on second-placed SME. Sony/ATV held its lead in music publishing, but the collective share of the independent publishing sector was the highest overall.

Majors cede a little recorded-music market share to the independents
Following two years of consolidation in the recorded-music and music-publishing sectors after the breakup of EMI Music Group and the subsequent sales of EMI’s record and publishing divisions, restructuring and company selloffs have had an impact on the market share figures for the major music groups in 2014.
UMG acquired EMI Recorded Music and a Sony-led consortium of companies bought EMI Music Publishing in 2012. National and regulatory approval required a number of company sales, which were completed with the sale of the PLG in July 2013. The timing of the sale meant year-on-year market-share comparisons for UMG and WMG this year and in 2013 were affected. Moreover, at the time of the PLG acquisition by WMG, the major said it would sell some of the PLG assets, or their equivalent value of owned assets, to independent companies. Strong interest by the independent sector has delayed the asset sales with more than 140 companies reported to have bid for around 11,000 artist catalogs. Should the selloffs be completed this year, WMG’s 2015 market share may well be negatively affected.

UMG is the recorded-music leader despite a market share dip
According to Music & Copyright’s annual survey of the music industry, UMG had a 34.1% share of the combined physical and digital recorded music trade revenue last year, down from 36.7% in 2013. For physical revenue only, UMG’s share stood at 32.3%, while its digital share was 36.1%. SME was the second-largest music company, with a virtually unchanged combined physical/digital market share of 22.5%.

Record companies, physical and digital revenue market shares, 2012–14
Recorded shares 2014
Source: Music & Copyright

The smallest of the three majors, WMG, was the only company to experience an increase in both physical and digital shares: Its share of revenue from physical recorded music sales was 15.7% in 2014, up from 14.8% in 2013, while the share gain was slightly lower for digital, rising to 17.7%, from 17.1%. WMG’s combined physical/digital share grew, to 16.7%, from 15.8%.
The independent record companies’ share of combined physical/digital revenue also rose last year, to 26.7%, from 25.1% in 2013. The sector increased its share of both physical and digital revenue. However, the independents’ share of physical formats is still higher than its digital share.

A healthy year for music publishing
Music & Copyright has calculated that global music publishing revenue grew 2.5% in 2014, to $4.05bn, from $3.95bn in 2013. Despite a virtually unchanged market share in 2014 of 29.5%, Sony/ATV, the joint venture between Sony and the Michael Jackson Estate, remained the global publishing leader. 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. EMI MP is the larger of the two companies in terms of tracks owned and administered, with a publishing catalog of around 2 million tracks, compared with 1.6 million for Sony/ATV.

Music publishing companies, revenue market shares, 2012–14
Publishing shares
Source: Music & Copyright

UMPG is the second-largest music publisher. The company’s market share edged up slightly last year, to 23.0%, from 22.6% in 2013. Warner Chappell was the only major music publisher to suffer a fall in share in 2014.

Independent companies hold the 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 a small increase in share: Music & Copyright estimates that independent companies accounted for 35.0% of global publishing revenue, compared with 34.8% in 2013.
BMG Rights Management is the biggest of the independent music publishers and has gained share consistently through a mixture of company acquisitions and administration deals. Music & Copyright estimates that BMG’s share of global music publishing revenue was 5.4% in 2014, up from 5.1% in 2013.
Kobalt has also made gains in the last few years, although increased revenue for the company has come from organic growth rather than through company acquisition. Music & Copyright estimates that Kobalt’s share of global publishing revenue increased to 3.9% last year, from 3.5% in 2013.

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

Music & Copyright is published by Ovum.

New issue of Music & Copyright with global market share details

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

Recorded music market share gains for WMG in 2014, Sony/ATV is the publishing leader
The annual survey by Ovum publication Music & Copyright of the recorded music and music publishing sectors has revealed changes in global market shares of the three major music groups. Recorded music leader UMG lost market share in 2014, mainly as a result of the sale of the Parlophone Label Group (PLG) to WMG in 2013, which formed part of EMI Recorded Music acquisition requirements. UMG’s loss was WMG’s gain and the smallest of the three majors narrowed the gap on second-placed SME. Sony/ATV held its lead in music publishing, but the collective share of the independent publishing sector was the highest overall. Continue reading

UMG and WMG see gains in recorded-music market share in 2013, while Sony/ATV dominates music publishing

Companies 2014Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed which companies have benefited most from the breakup of EMI. UMG increased its dominance of the recorded-music sector in 2013, while WMG closed the gap on the second-largest company, SME. Sony/ATV is the clear leader in terms of corporate publishing control.

The last two years have seen significant consolidation in the recorded-music and music-publishing sectors, after the breakup of EMI Music Group and the subsequent sales of EMI’s record and publishing divisions. Although UMG’s acquisition of EMI Recorded Music and the purchase of EMI Music Publishing by a Sony-led consortium received the various national and regional regulatory seals of approval in 2012, enforced divestments meant that the consolidation process was completed only last year. The result is a music industry dominated by three corporate groups: UMG has extended its market-share lead in terms of revenues from recorded-music sales, and Sony/ATV is the clear music-publishing leader.

Prior to the latest round of consolidation, UMG was the biggest recorded-music company in the world. The addition of the EMI assets in October 2012 boosted the company’s market share that year, but 2013 was the first full year the acquired EMI companies were included in UMG’s results. However, given that divestments were completed only in 2013, market-share figures for 2014 will be the first to truly reflect the new recorded-music landscape. Continue reading

UMG leads the new order of recorded-music companies, Sony dominates music publishing

Music & Copyright’s annual survey of the recorded-music and music-publishing sectors has revealed how much Universal Music Group (UMG) and Sony have benefited in market-share terms from the breakup of EMI and the consolidation of the two music-industry sectors. UMG cemented its position as the largest recorded-music company last year, and Sony is now the clear leader in terms of corporate publishing control. Continue reading

A short history of the music industry: different formats, familiar names but the same old problems

M&C coverIn the past 20 years or so, all sectors of the music industry have been through massive change. Format transitions, company consolidation and greater scrutiny of copyright and licensing have changed the industry beyond all recognition. But have the changes made for industry improvements, and more important, have the main players learned from their mistakes? The recent discovery of the first issues of Music & Copyright has allowed for a unique look at just how much certain things have changed, and how much they haven’t.

The newsletter’s 20-year anniversary came and went in September, but thanks to a long-standing subscriber, copies of the first 24 issues published have been found and make for interesting reading. Despite containing names that have either long since left the music industry or been swallowed up as part of industry consolidation, the headlines for a number of news stories resonate closely with happenings today. Continue reading