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(IMS) Business Report CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net IMS BUSINESS REPORT 2012 COMMISSIONED BY IMS AUTHORED BY KEVIN WATSON As presented exclusively to delegates at the International Music Summit, Ibiza, May 2012 CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Recently it has felt like our industry is the next Hollywood blockbuster… This years most talked-about music genre… “This is the new “They’re the new rock ‘n’ roll” rock stars…DJs” MTV music & talent Singer-songwriter Ryan programmer Tedder EDM starring Madonna! Paris Hilton! Rihanna! ** Now showing at clubs and festivals worldwide ** …but what has actually been happening in dance in 2012 – read on… CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Electronic Dance Music (EDM) Industry Broadcast Recorded Music DJs & Live Acts Channels • Tracks, albums & • Individuals and collectives • Clubs & Festivals compilations • Responsible for • TV advertising • Categorised as ‘Electronic’, dissemination of electronic • Films ‘Electronica’, ‘Dance’, etc music via broadcast channels • Radio stations • Published via record labels or released independently, • Increasing crossover • Websites e.g. through the Internet between DJs & live acts Other • Other electronic music related industries, activities and organisations, including: • Production/DJ hardware & software; magazines; fashion brands; online communities CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Electronic Dance Music (EDM) Industry Broadcast Recorded Music DJs & Live Acts Channels • Tracks, albums & • Individuals and collectives • Clubs & Festivals compilations • Responsible for • TV advertising • Categorised as ‘Electronic’, dissemination of electronic • Films ‘Electronica’, ‘Dance’, etc music via broadcast channels • Radio stations • Published via record labels or released independently, • Increasing crossover • Websites e.g. through the Internet between DJs & live acts Other • Other electronic music related industries, activities and organisations, including: • Production/DJ hardware & software; magazines; fashion brands; online communities CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Dance Music was the highest growing mainstream genre in terms of 2012 album sales in the USA USA Album Sales by Genre: YoY Change (2010-2011) Total Digital Only 2 20 (2) 27 (1) 21 Total Total (4) 27 Total Total 3 42 2 16 15 42 YoY Chg in Sales (%) YoY Chg in Sales (%) Source: Neilsen Soundscan Music 2011 report CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Dance Music share of singles sales in the UK grew for the first time in four years in 2011 Dance Music Share of Single Sales in UK: YoY Change (2007-11) 1.2 • Dance music share of singles has been in decline since 2007 ?? • 2011 saw growth driven by a number of top- YoY (0.1) selling singles including Chg LMFAO – Party Rock (0.5) (%) Anthem • Growth looks set to continue in 2012, with the most purchased singles artist of the year (2.3) so far being David Guetta Source: Official Charts Company CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net The biggest EDM track of the last 12 months achieved over 150m global views / plays through all media Avicii – ‘Levels: User Generated Views/Plays by Source (as at 05/12) 0.5m plays 0.2m plays 100m views Estimated 50m torrent 1m downloads views Top 10 in 14 countries Previous years: David Guetta – When Love Takes Over (2010): 50m; SHM – One (2011): 50m Source: channel websites, official chart bodies, Google, BPI, Music Metric, Wikipedia CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Electronic Dance Music (EDM) Industry Broadcast Recorded Music DJs & Live Acts Channels • Tracks, albums & • Individuals and collectives • Clubs & Festivals compilations • Responsible for • TV advertising • Categorised as ‘Electronic’, dissemination of electronic • Films ‘Electronica’, ‘Dance’, etc music via broadcast channels • Radio stations • Published via record labels or released independently, • Increasing crossover • Websites e.g. through the Internet between DJs & live acts Other • Other electronic music related industries, activities and organisations, including: • Production/DJ hardware & software; magazines; fashion brands; online communities CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net EDM DJs have seen growth of their Facebook fanbases slow slightly in the last year Vs previous 12 months Facebook Fans by Join Period (m) Fans Added (2011/12) 12 14 16 18 In Year Per Day 13.5m 37k 3.9m 11k 1.6m 5k 2.7m 7k 0.7m 2k • Most DJs added less fans in 2011/12 than the previous 12 months • Exceptions were artists such as May ’10 - May ‘11 deadmau5 & Skrillex May ’11 - May ‘12 • However, fanbases still grew by >50% for most, with David Guetta still adding the equivalent of a festival crowd every day Note: As of May 2012; * Total fans as at May 2012 Source: Facebook CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Twitter followers have increased exponentially for leading EDM artists & DJs, who are also tweeting more Twitter Followers by Join Period (m) Tweets per day 4.5 5.0 2010/11 2011/12 1.1 3.6 0.7 1.5 0.4 0.7 10.7 16.0 0.4 0.3 3.2 6.6 0.3 0.8 May ‘11 7.7 15.3 0.3 0.3 May ’11 - May ‘12 0.9 2.6 0.1 0.4 • Most EDM DJs & Artists have doubled their number of twitter followers in the last 12 months • They have also begun to tweet much more frequently, sending around 6 per day Vs 3 a year ago • Tiesto & Deadmau5 remain the biggest tweeters 1.3 Note: As of May 2012; * Total followers as at May 2012 Source: Twitter CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Hype That Sound chart shows massive growth in Skrillex’s fanbase, making him 3rd post popular DJ Hype That Sound Social 100 DJs List (May 2011 Vs May 2012) • Guetta & Tiesto unmoved from top two positions in chart comprised of Facebook, YouTube, Twitter & Soundcloud • Skrillex big mover up to 3rd place after adding over 8m fans • Avicii & Afrojack enter chart for first time at 8 and 12 respectively • Also new entries for dubstep / bass artists / DJs Bassnectar, Nero & Excision • Significant falls for Paul Kalkbrenner, Bob Sinclar, ATB & Rusko Source: Hype That Sound .com CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net A phenomenal online fan base means Skrillex is now 3rd in the Billboard Social 50 chart • 1.3m subscribers • 480m views (80m for one video alone) • 6.2m likes • 240k people talking about page • 1.3m followers Skrillex now more ‘popular’ online than Rihanna, One Direction or David Guetta Source: Facebook, Twitter, YouTube, Billboard / Next Big Sound CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net There are a number of factors that have contributed to Skrillex’s large & loyal following Industry Praise Combines Genres Bedroom Producer • 13% of DJs in the DJ Mag • His music has influences • He is young (still only 24 Top 100 named him as their from both Rock and Dance years old) ‘breakthrough DJ / • One of first artists to cross • Uses home ‘studio’ with producer’ over into Rock, which is basic equipment to make • He was signed early on to most popular genre in USA records deadmau5’s label and across many other • Minimal marketing budget, parts of the world • Awarded three Grammys in instead harnessing power 2012 of social media CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net American Festivals and events have lead to significant increases in Skrillex’s fanbase in 2012 Skrillex: Fans Added per Day (Feb – Apr 2012) 17th Mar: Ultimate Music 14th Apr: Experience Festival, Texas Coachella 12th Feb: 54th 16th Mar: SXSW 24th Mar: Ultra Music Festival, Grammys, LA California Festival, Texas Festival, Florida Fans per day These events also drive track sales – the Grammys resulted in a c.30% uplift Source: Music Metric Fantracker, Google News, Industry Press CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net Electronic Dance Music (EDM) Industry Broadcast Recorded Music DJs & Live Acts Channels • Tracks, albums & • Individuals and collectives • Clubs & Festivals compilations • Responsible for • TV advertising • Categorised as ‘Electronic’, dissemination of electronic • Films ‘Electronica’, ‘Dance’, etc music via broadcast channels • Radio stations • Published via record labels or released independently, • Increasing crossover • Websites e.g. through the Internet between DJs & live acts Other • Other electronic music related industries, activities and organisations, including: • Production/DJ hardware & software; magazines; fashion brands; online communities CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net The popularity of Electronic Dance Music has begun to boom in the USA in 2012 Google Searches for EDM by Country (July 2010 – May 2012) 2012: Significant growth in USA USA, with spikes in activity UK around UMF & Grammys 2010-2011: reasonably constant search volume in UK & USA Index • States with most EDM searches: California, Arizona, New Jersey, Mass., Ohio • Growth across all search terms, incl. edm music & festivals • Evidence of EDM popularity supported by USA airplay stats – David Guetta & Nicki Minaj – Turn Me On is most played song of 2012 so far Source: Google, Billboard CONFIDENTIAL – FOR IMS:2012 DELEGATES ONLY KevinWatson.net EDM festival growth in the USA has continued apace, with demand matching supply USA EDM Festival Capacity by Event (2007-2012E) INDICATIVE • Total capacity has grown by over 45% pa since 2007 945 • Expansion of EDC & launch of Other** new events will add 150k+ in Hard Summer Fest 2012, taking capacity to c.1m
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