While there is war out there and, behind it, there are two years of pandemic that have brought the live segment to its knees almost everywhere, the discography thanks to streaming slips into the seventh consecutive year of growth: the global market of recorded music in 2021 grew by 18.5%, the Italian one by 27.8%. The data of the latest Ifpi Report, the world federation of record majors, just presented in London, should be framed. The leitmotiv remains that of a sector that 20 years ago was given up for dead, due to a technological revolution, yet it has managed to re-invent its business model, re-interpreting that same technological revolution in its favor.
Global market, revenues of 25.9 billion
2021, worldwide, closed with revenues of 25.9 billion (+ 18.5%). Premium streaming revenues grew 21.9% ($ 12.3 billion), with 523 million subscribers at the end of 2021. Total streaming (including subscriptions and ad-supported free listening) was grew 24.3% to $ 16.9 billion, or 65.0% of total global recorded music revenue. In addition to streaming revenues, growth was supported by increases in other areas, including physical formats (+ 16.1%) and performance rights (+ 4.0%).
Italy returns to the top ten of the record markets
Also in Italy, in what will go down in history as the year of the Måneskin, there is a decisive surge in the record sector which, after five years, returns to the top ten of the most important markets globally with a 27.8% growth to over 332 million euros in revenues. Revenues from subscriptions to streaming platforms have dragged the sector: the premium segment grew by 35.6 percent. Strong impact also in the video streaming area supported by advertising with + 46.3%. Overall, the entire segment between audio and video streaming grew by 24.6% reaching 208 million euros in revenues. In the audio segment alone, Italian consumers now make an average of over a billion streams every week. In general, in 2021, Italian consumers spent over 19 hours a week listening to music. 45% through premium subscription, a percentage that rises to 57% between 16 and 24 years.
The physique is also good
After the difficult 2020, even the cd has returned to generate increasing revenues with a +10.6 percent. In particular, in the physical, vinyl continues its constant growth: after having surpassed the CDs at the beginning of 2021, it confirmed its exploit with almost 79% increase. However, the figure remains below 2019. Revenues from other formats such as cassette tapes also grow, up by 245 percent. In the physical segment, the Culture Bonus 18 app was particularly effective, the impact of which came to represent over 21 million euros in total. Related rights, i.e. revenues from licenses for the use of music in radio, television, gyms, public establishments and private parties also grew with + 37.2% to 52 million euros and synchronization rights, i.e. music in advertising, films and TV series, it saw an increase of 36.4%, exceeding ten million euros for the first time.
More competitive global market
“All over the world“, comments Frances Moore, CEO of Ifpi who on behalf of record companies all over the world addresses a thought to Ukraine attacked by Russia, “the record companies are working hard to support musical cultures and carry on developing emerging music ecosystems, supporting local music and creating opportunities to reach a global audience. As more markets mature, they unite and contribute to the rich, globally interconnected music world. As a result, today’s music market is the most competitive in the world. Fans are enjoying more music than ever and in so many different and new ways. This creates enormous opportunities for artists ».