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Midyear Report Canada 2020

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Midyear Report Canada 2020 NIELSEN MUSIC / MRC DATA MIDYEAR REPORT CANADA 2020 1 Introduction HAT A DIFFERENCE A FEW MONTHS MAKE. IT’S HARD TO BELIEVE THAT IT WASN’T even six months ago that Shakira and Jennifer Lopez performed for a tightly packed crowd of more than 60,000 people in Miami at the Super Bowl, while Billie Eilish and her brother Finneas picked up five Grammys at what turned out to be 2020’s last major music business gathering since COVID-19 halted live events. WBy Friday, March 13, the NBA and NHL had suspended play, the NCAA had canceled its spring tournaments, and theaters and live music venues had closed. As “safer at home” orders spread throughout the country, our homes became our offices, our schools, our daycares and our social hubs. Quickly and dramatically, life had changed. Our routines were disrupted, and we struggled to find balance. Still, the music industry was experiencing a strong start to the year. Audio streaming was growing through early March, up 20.9% over the same period in 2019. Total music consumption was up 10.8% in the first 10 weeks of the year. As working from home became a reality for many, some of the key music listening hours, such as during commutes, were disrupted. But one thing that has remained consistent as the pandemic has unfolded is entertainment’s place in helping consumers escape, relax and feel energized. In fact, in our recent consumer research studies, 73% of people said they would go crazy without entertainment during this time. Then, just as many communities began to slowly reopen, the country was shaken by the senseless May 25 killing of George Floyd by Minneapolis police. This event, coupled with other recent acts of racial injustice, activated a widespread public outcry for social reform. Protests, Total music marches and rallies took place across Canada and the world as our attention focused on Black Lives Matter and consumption police reform. The artistic community, as it always has, responded with powerful music — Lil Baby, Meek Mill, was up 10.8% Beyoncé and many other performers delivered messages in the first in new releases that dominated streaming’s playlists. Please join us in looking back at the major stories in 10 weeks of the industry over the first six months of 2020. We are encouraged by the continued strong demand for music. the year. By We celebrate the creativity that artists have shown and the new ways that they are staying engaged with their fan mid-March, bases. We hope that you find this data informative, as we all seek to quantify the trends and look forward to the that would rest of the year. As always, we would love to hear from all change. you to learn how we can provide more tools to prepare you for music’s ever-changing landscape. Email us at [email protected]. 2 Contents 2020 MIDYEAR HIGHLIGHTS ��������������������������������������������������������4 2020 MIDYEAR MOMENTS ������������������������������������������������������������6 2020 MIDYEAR CHARTS ���������������������������������������������������������������24 In this report, Nielsen Music/MRC Data is using a 26-week period for this year, running from Jan. 3 through July 2, while last year’s corresponding period ran from Jan. 4, 2019, through July 4, 2019. 3 Total Consumption AUDIO MIDYEAR 2020 (ALBUM + TEA + ON-DEMAND AUDIO SEA) 2019 33.4M +5.7 2020 35.3M % CHG. TEA (track-equivalent albums): 10 digital tracks = one album. Highlights SEA (stream-equivalent albums): 1,250 premium streams = one album. 3,750 ad-supported streams = one album. SES (stream-equivalent songs): 125 premium streams = one song. 375 ad-supported streams = one song. Due to reporting PRE-/POST-COVID-19 ANALYSIS: 2020 VS. SAME PERIOD IN 2019 methodology changes from a major video provider, year- YEAR TO over-year video comparisons DATE THROUGH MARCH 13– TOTAL 2020 are not reflective of industry MARCH 12 JULY 2 YEAR TO DATE trends and therefore have been left out of this report. Total Audio Activity +10.8% +2.6% +5.7% Note: The term “total album- equivalent consumption” On-Demand Audio Streaming +21.3% +14% +16.6% describes the number of physical and digital albums that were sold and the total Total Album Sales -27.1% -45.7% -38.4% number of album-equivalent songs from downloads and song streaming volume. Physical Albums -26.2% -64.7% -49.7% For the sake of clarity, the definition of total album- equivalent consumption does Digital Albums -28.4% -16.7% -21.4% not include listening to music on broadcast radio or digital radio broadcasts. Unless Digital Song Sales -29.7% -24.5% -26.6% otherwise noted, all numbers are volume. 4 On-Demand Song Streaming AUDIO 2019 36.1B +16.7 2020 42.2B % CHG. Total Album Sales + TEA 2019 6.9M -35.3 2020 4.4M % CHG. Album-Equivalent Consumption DIGITAL (DIGITAL ALBUMS + TEA + ON-DEMAND AUDIO SEA) 2019 30.4M +11.2 2020 33.8M % CHG. Catalog vs. Current Consumption Total Album Sales (ALBUM + TEA + ON-DEMAND AUDIO SEA) (Catalog is defined as older than 18 months) (PHYSICAL + DIGITAL) -38.4 2019 5M Current % CHG. 2020 3.1M 2019 41% -2 2020 YOY 38% VOLUME Digital Album Sales % CHG. -21.4 Volume 2019 2M 2019 13.7M % CHG. 2020 1.6M 2020 13.4M Physical Album Sales (INCLUDES VINYL LPs) Catalog -49.7 2019 59% +11 2019 3M YOY % CHG. 2020 62% VOLUME 2020 1.5M % CHG. Volume Vinyl LP Sales 2019 19.8M -26 2020 21.9M 2019 420K % CHG. 2020 311K Due to reporting methodology changes from a major video provider, year-over-year video comparisons are not reflective of industry trends and therefore have been Digital Track Sales left out of this report. Note: The term “total album-equivalent consumption” describes the number of physical -26.6 and digital albums that were sold and the total number of album-equivalent songs 2019 18M from downloads and song streaming volume. For the sake of clarity, the definition of % CHG. total album-equivalent consumption does not include listening to music on broadcast 2020 13.2M radio or digital radio broadcasts. Unless otherwise noted, all numbers are volume. 5 THE MARKET BEFORE COVID-19 WAS SURGING HE RECORDED-MUSIC BUSINESS WAS CELEBRATING the expected declines from physical and digital sales. rosy results on all fronts before the coronavirus Meanwhile, the usual slate of early-year events that put crashed the party. Through March 12, total audio music on the national stage gave a select group of artists consumption was up 10.8% to 13.8 million album- — including some new global superstars — substantial Tequivalent units. Audio streaming showed continued growth, boosts in streams. posting a 21.3% increase to over 16 billion streams, offsetting The Grammy Awards on Jan. 26 gave performers and winners a major spike in consumption activity collectively. Tracks by BILLIE EILISH, winner of album, record and song of the year, as well as best new artist — posted a 38% streaming increase for the week of the ceremony, while the major record labels hailed the 18-year-old’s sweep of the Big Four awards as a victory for old-fashioned artist development. Other stars had people hitting the Play button, too: Camila Cabello’s “First Man” rocketed 711%, Lil Nas X’s “Rodeo” climbed 119%, and Lizzo’s “Cuz I Love You” rose 82%. Eilish at the Grammy Awards in Los Angeles. Shakira (left) and (Alberto E. Rodriguez/Getty Images Lopez at the Pepsi for The Recording Academy) Super Bowl LIV Halftime Show in Miami on Feb. 2. (Kevin Mazur/ WireImage) A week later, on Feb. 2, the Pepsi Super Bowl LIV Halftime Show, starring JENNIFER LOPEZ and SHAKIRA, provided a 224% boost in audio and video consumption to the artists’ combined catalogs the week of the game. The annual tradition impressed with an peak TV audience of 12.1 million, according to Numeris. EMINEM’s surprise performance at the Academy Awards on Feb. 9 gave his track “Lose Yourself” a 163% consumption Eminem (Craig McDean) increase for the week. 6 48.9% year-to-date loss through June 4. Vinyl, revived from a moribund state AFTER COVID-19, THE over the past decade, was also hit hard. Through March 12, sales were down 8%; post-lockdown, the deficit had MARKET WENT HAYWIRE increased to 28.5% by June 4. Of the 14 major genres, country music had the largest gains in weekly average HEN THE CORONAVIRUS — but they kept streaming. streams from pre- to post-lockdown by a pandemic ensued, halting the Subscription services were the wide margin. Time at home with devices concerts that artists and labels big beneficiaries in the early weeks and smart speakers were the nudge that count on to market their music of the pandemic as people spent was needed: Just as country listeners Tand wreaking havoc on the global an extraordinary amount of time at had lagged behind other music fans in economy. Nielsen Music/MRC Data home. Music video streams were 9.3% download adoption, they have been and Billboard teamed up to monitor higher than the pre-COVID-19 baseline relatively slow to adopt subscription consumer behavior and attitudes in (the period of Jan. 17 to March 12) in services. But they quickly switched the United States and released a series the first week and rose to 13.4% the gears. By the week ending May 7, of reports titled COVID-19: Tracking the following week. country music streams had steadily risen Impact on the Entertainment Landscape.* Physical purchases took a hit from 10.5% above the baseline even though Consumer anxiety was already high in mid-March to June as music retailers a few key releases were postponed.
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