Recorded Music Market 2017 Streaming Accelerating Growth
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The 20,000 Foot View: Recorded music revenues are booming and the distribution end of the value chain is both vibrant and competitive. This has not been the case for many, many years. Streaming is on course to become the main revenue source, while the slowdown in legacy format decline is enabling that growth to lift the overall market at a greater rate. The big record companies retain their dominant market positions, but, just as on the distribution side of the equation, the rights side of the recorded music market is undergoing transformation, with artists going direct the big revenue trend to surface in 2017.
- Global recorded music revenues reached billion, up billion from 2016
- Streaming was the key driver of growth, up year on year to reach billion
- Legacy formats (physical and downloads) were down million; this was less than million lost in 2016
- Label revenue from performance royalties and synchronisation reached billion in 2017, representing of the total
- Universal Music remained the largest label group in 2017 with annual revenues of followed by Sony Music and Warner Music
- Warner Music was the fastest growing major with annual growth, though Universal Music added the most revenue in absolute terms
- Independent labels had another strong year, growing by to reach million
- Artists direct (i.e. artists without labels) were the biggest gainers in 2017, growing by to reach million,
- Artists direct increased its market share from (2015) to to (2017) while Warner Music increased its share from in 2015 to in 2017
- Artists direct and independents combined represented of all revenues in 2017
Companies and brands mentioned in this report: Amazon, Apple, Apple Music, Bandcamp, Believe Digital, CD Baby, Cooking Vinyl, Deezer, Napster, Sony Music, Spotify, Tunecore, Universal Music Group, Warner Music Group