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Global Music Report 2017 Annual State of the Industry

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Global Music Report 2017 Annual State of the Industry GLOBAL MUSIC REPORT 2017 ANNUAL STATE OF THE INDUSTRY Global top 10 recording artists of 2016 Never stop playing. GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY 3 WELCOME he IFPI Global Music Report tells a positive story of music being enjoyed by more people in more ways than ever before. At the heart of this story T are incredible artists, supported by the invest- ment and innovation from record companies and other partners that is helping them to share their music with the world. We are now in an exciting era in which streaming is making the depth and richness of every kind of music available to hundreds of millions of people, with artists Plácido Domingo connecting more directly and more quickly with their Chairman, IFPI audiences. Challenges remain, however, and the fair remunera- tion of those that create and invest in music must be a priority in this increasingly digital world. The whole community is uniting in its efforts to ensure that music is properly valued so that artists and their work can thrive. UNLOCK THE GLOBAL POWER OF NIELSEN MUSIC YOUR KEY TO THE BEST DATA-DRIVEN SOLUTIONS IN THE BUSINESS GAIN ACCESS TO MUSIC CONNECT The Industry’s Most Trusted Data & Insights with Over 20 International Charts CUSTOM RESEARCH, ANALYTICS and MORE GET THE INFORMATION YOU NEED TO GROW YOUR BUSINESS IN 2017 Contact [email protected] CONTENTS ANNUAL STATE OF THE INDUSTRY 01. Global music market 2016 figures 6 02. Introduction – Frances Moore 7 03. Global charts 8 UNLOCK 04. Global market overview 10 THE GLOBAL POWER OF 2016 figures by format and region 12 05. The evolving market: streaming grows global revenues and rewrites the rulebook 16 NIELSEN 06. Rewarding creativity: fixing the value gap 24 0 7. Territory focus: China’s phenomenal potential unlocked by streaming 28 MUSIC 08. Territory focus: Africa – an emerging opportunity 32 09. The value of record companies 34 YOUR KEY TO THE BEST 10. Safeguarding music 37 DATA-DRIVEN SOLUTIONS 11. Working with artists 39 IN THE BUSINESS GAIN ACCESS TO MUSIC CONNECT The Industry’s Most Trusted Data & Insights with Over 20 International Charts CUSTOM RESEARCH, ANALYTICS and MORE See www.ifpi.org for details of the full Global Music Report 2017 including a premium 'Data and Analysis' section. www.ifpi.org © IFPI 2017 @IFPI_org All data, copy and images are subject to copyright and may not be reproduced, GET THE INFORMATION YOU NEED TO GROW YOUR BUSINESS IN 2017 Designed by Studiomade transmitted or made available without permission from IFPI. Contact [email protected] 6 GLOBAL MUSIC MARKET 2016 FIGURES GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY GLOBAL MUSIC MARKET 2016 IN NUMBERS +5.9% 50% GLOBAL REVENUE GROWTH DIGITAL SHARE OF GLOBAL REVENUES +17.7% +60.4% DIGITAL REVENUE GROWTH GROWTH IN STREAMING REVENUE –7.6% –20.5% PHYSICAL REVENUE DOWNLOAD REVENUE GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY INTRODUCTION 7 INTRODUCTION Modest growth, limitless potential. Frances Moore CEO, IFPI he global recording industry is see- The transformation has created an in some territories around the world, in- ing modest growth after more than enormously exciting environment for mu- cluding in Europe where the European a decade of significant decline. sic fans, who are benefitting from new and Commission has recognised the existence T Years of investment and innovation evolving services and accessing more mu- of a value gap and begun working towards have begun to reward an industry that has sic than ever before. In turn, artists have legislation. However, this is a global prob- shifted from adapting to the digital age, to more ways to connect with their fans and lem that requires legislative solutions driving it. more opportunities to share their work in across the globe. The industry continues to The story of the recorded music in- diverse and creative ways. If the digital fight worldwide for a level playing field for dustry over the last two decades is one of market continues to grow, so too will the fairly licensed digital services. transformation: from physical to digital; overall level of remuneration to artists, Copyright infringement, in a variety of downloads to streaming; ownership to ac- as will the levels of overall investment re- guises, remains a major issue, with the cess. The industry is now working with its quired to create new music whilst helping growing practice of ‘stream ripping’ now partners on another, ongoing transforma- to drive digital innovation. very much part of the challenge facing our tion: from years of decline to sustainable However, this is far from ‘mission ac- industry. With an unprecedented amount growth. complished’. Instead, as the market con- of licensed music now available to fans, While physical sales remain significant tinues to evolve at a pace never before these practices have no place in the music in certain territories and for certain artists, seen, the industry is seizing the moment, world, today or tomorrow. there is no doubt that streaming is the key driving further innovation and exploring The global music business is changing driver of growth, with the number of users ever-expanding new ways of engaging with more significantly – and quickly – than of paid subscriptions having broken the fans around the world. ever before, but the fundamental role of 100 million mark and continuing to rise. Realistically, for this growth to become a record company remains the same: to Fans are engaged with music in an amaz- sustainable, for investment in artists to discover, nurture, support and promote ing variety of formats, from the vinyl revival be maintained and for the market to con- artists and to make their music accessible to the phenomenon of musical.ly, but the tinue to evolve and develop, more must be around the world. growth story is centred on services which done to safeguard the value of music and are widening streaming’s demographic to reward creativity. For music to thrive in appeal. Record companies and their distri- a digital world, there must be a fair digital bution partners have been instrumental in marketplace. this, licensing more than 40 million tracks Artists and creators have spoken about to hundreds of digital services worldwide the global ‘value gap’, whereby ‘safe har- and developing the high performance bour’ legislation dating from the Internet’s systems that allow music to be accessed early days is being abused by user upload around the world. Their approach has been services such as YouTube, who are not li- global in scope and yet local in execution, censing music on a fair basis. Gradually, adapting their practices to open up legal policymakers are beginning to listen and digital markets for music. legislation is being examined or proposed 8 GLOBAL CHARTS GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY GLOBAL CHARTS Most popular artists and best sellers of 2016. TOP 10 RECORDING ARTISTS DRAKE DAVID BOWIE COLDPLAY ADELE JUSTIN BIEBER TWENTY ONE PILOTS BEYONCÉ RIHANNA PRINCE 2015 top 10 list: 1 ADELE 6 COLDPLAY 2 ED SHEERAN 7 MAROON 5 3 TAYLOR SWIFT 8 SAM SMITH 4 JUSTIN BIEBER 9 DRAKE 5 ONE DIRECTION 10 THE WEEKND THE WEEKND Source: IFPI. The compilation of the IFPI top artist chart has been independently verified through certain agreed procedures by BDO LLP. BDO LLP has verified that IFPI has compiled the chart correctly in line with the outlined procedures. GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY GLOBAL CHARTS 9 GLOBAL TOP 10 ALBUMS OF 2016 GLOBAL TOP 10 DIGITAL SINGLES OF 2016 Units Units Title and artist (m) Title and artist (m) Lemonade One Dance 2.5 12.5 1 BEYONCÉ 1 DRAKE 25 Love Yourself 2.4 11.7 2 ADELE 2 JUSTIN BIEBER Closer Views 2.3 3 THE CHAINSMOKERS 11.7 3 DRAKE FEAT. HALSEY Hardwired...to Cheap Thrills 11.1 4 Self-destruct 2.1 4 SIA METALLICA Blackstar Sorry 1.9 10.8 5 DAVID BOWIE 5 JUSTIN BIEBER Blue & Lonesome Work 1.8 10.6 6 THE ROLLING STONES 6 RIHANNA 24k Magic 7 Years 1.7 10.4 7 BRUNO MARS 7 LUKAS GRAHAM Don’t Let Me Down Blurryface THE CHAINSMOKERS 1.5 10.2 8 TWENTY ONE PILOTS 8 FEAT. DAYA & KONSHENS A Head Full I Took A Pill 9 Of Dreams 1.4 9 In Ibiza 10.0 COLDPLAY MIKE POSNER A Pentatonix Stressed Out 9.9 10 Christmas 1.4 10 TWENTY ONE PILOTS PENTATONIX Source: IFPI. Physical and digital albums included. Streams excluded. Source: IFPI. Units include single-track downloads and track-equivalent streams. For full top 50 global albums and top 20 digital singles, please see the Data and Analysis section of the full report. 10 GLOBAL MARKET OVERVIEW GLOBAL MUSIC REPORT 2017: ANNUAL STATE OF THE INDUSTRY GLOBAL MARKET OVERVIEW Growth driven by investment and innovation. n 2016, the global recorded music mar- for bespoke, local approaches to develop ket grew by 5.9%, the fastest rate of new and emerging markets. GLOBAL GROWTH growth since IFPI began tracking the The global digital market is now seeing IN MUSIC I market in 1997. This was a second con- unprecedented competition, with stream- secutive year of global growth for the in- ing services developing and extending dustry, with revenue increasing in the vast their offerings around the world. Rather majority of markets, including nine of the than cannibalising the existing streaming top ten. This growth, however, should be base, these developments are expanding � 5.9% viewed in the context of the industry losing it, providing fans with a more varied, richer Global recorded nearly 40% of its revenues in the preced- experience and bringing streaming to new music market growth.
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