Global music profits rose by 10.2 percent last year to $28.6 billion, as per information put out on Thursday. However, music companies are worried about sustaining growth during the era of streaming.
The top performer globally was Taylor Swift, based on the yearly report by the International Federation of the Phonographic Industry, which speaks for worldwide record companies.
Following closely behind Swift were two Korean bands, Seventeen and Stray Kids, showing the growing popularity of K-pop.
The most popular singles worldwide were Miley Cyrus's “Flowers,” with over 2 billion streams (2.7 bn), followed by Rema and Selena Gomez's “Calm Down” (1.89 bn) and Sza's “Kill Bill” (1.84 bn).
The music industry continued its growth for the ninth year in a row, primarily due to the ongoing expansion of streaming (up 11.2 percent), which now makes up more than two-thirds (67.3 percent) of global revenues.
The number of paid streaming subscriptions exceeded 500 million for the first time and reached 667 million.
Physical formats, especially vinyl, also experienced growth, with sales increasing by 13.4 percent.
John Nolan, IFPI’s chief financial officer, stated, “The numbers in this year’s report show a truly worldwide and diverse industry, with revenues increasing in every market, every region, and across almost every recorded music format.”
The regions with the fastest growth were Sub-Saharan Africa (up 24.7 percent) and Latin America (19.4 percent), partly due to the popularity of streaming and the emergence of local stars such as Burna Boy, Asake, J Balvin, and Bad Bunny.
The largest music markets remained the United States, Japan, and Britain.
– Influence of TikTok –
However, the industry has some important concerns, especially as young individuals spend more time on TikTok and games.
Dennis Kooker of Sony Music mentioned at a press conference for the launch of IFPI’s report, “The low-quality ad-supported, short-clip video platforms are unlikely to lead to paid subscriptions and are becoming the primary consumption platforms for many young consumers.”
Universal Music Group recently pulled its music from TikTok because of a dispute over the app’s use of AI-generated music and song royalties.
Kooker indicated that record companies are increasingly focusing on devoted fans.
“Those who desire more, and are willing to pay more, need products tailored for them,” he said.
However, companies are struggling to persuade people to pay for streaming in certain major markets, including France.
“The rate of streaming adoption is still very low in France,” said Marie-Anne Robert, managing director of Sony Music France, at the conference.
“It’s a significant challenge for us, the artists, and with the recent implementation of a streaming tax, it certainly does not help,” she added, referring to a new tax on services like Spotify that is being introduced this year in France.
AFP
