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Global Music Report 2018 ANNUAL STATE of the INDUSTRY Global Music Report 2018 ANNUAL STATE OF THE INDUSTRY Global top 10 recording artists of 2017 Untitled-3 1 3/4/18 3:58 PM GLOBAL MUSIC REPORT 2018: STATE OF THE INDUSTRY Welcome · 3 Welcome As an artist, I am privileged to perform One of the crucial roles for record com- before audiences around the world and panies is to support and invest in artists see first-hand how essential music is for and to help them develop for their greatest people from every walk of life. creative and commercial success, so that But even as music’s essence is endur- their music can be enjoyed by fans around ing, much about music is changing. the world. The IFPI Global Music Report tells the It is therefore essential that all music cre- PLÁCIDO DOMINGO story of recorded music’s ongoing journey. ators are fairly compensated for their work. I CHAIRMAN, IFPI Today, artists are reaching music fans in have met with policymakers in Europe and ways I never could have imagined when I elsewhere to call on them to back legislation began my own career. Music is global and that would support this by addressing the increasingly digital. This transformation value gap, thereby ensuring a fair and bal- has been fundamental and rapid and offers anced digital marketplace for all. great opportunities. We are living in an incredibly exciting But we can never forget that music time for recorded music. We must persevere does not just happen. It requires the hard with our efforts to ensure its journey benefits work, commitment, investment and artist- the music creators and fans of today, and ry of so many people. continues to do so for generations to come. “This is the most fast-paced “When we combine great “For some time now, we’ve and innovative chapter of the music with the continued been looking at artists as music business in decades. investment, passion, global from day one. Our We continue to grow the innovation and support role is to help turn creativity number of opportunities of the women and men at into careers and to convert for artists to reach their music companies, the fans’ access into attention. audience, whilst ensuring results are profound.” So, when our local expertise that the standard of the ignites momentum, a Sir Lucian Grainge, art is equally exciting and connected, agile team around Chairman & Chief challenging.” the world is primed and Executive Officer of ready to amplify instantly.” Rob Stringer, CEO, Universal Music Group Sony Music Entertainment Max Lousada, CEO, Recorded Music, Warner Music Group NIELSEN MUSIC INDUSTRY CURRENCY Comprehensive Sales, Streaming & Airplay Data CUSTOM RESEARCH Powered by Music Connect Music Fan Insights to Maximize Commercial Success SPONSORSHIP VALUATION Artist & Brand Solutions to Build Successful Partnerships THE LEADING SOURCE OF MUSIC CONSUMPTION DATA & FAN INSIGHTS AROUND THE WORLD [email protected] GLOBAL MUSIC REPORT 2018: STATE OF THE INDUSTRY contents · 5 Contents STATE OF THE INDUSTRY 6 GLOBAL MUSIC MARKET 2017 IN NUMBERS 7 INTRODUCTION – FRANCES MOORE 8 GLOBAL CHARTS 10 GLOBAL MARKET OVERVIEW 13 2017 FIGURES BY FORMAT AND REGION 16 THE EVOLVING MARKET 26 FIXING THE VALUE GAP 30 TERRITORY FOCUS: LATIN AMERICA 33 CASE STUDY: LUIS FONSI 34 TERRITORY FOCUS: CHINA 38 WORKING IN PARTNERSHIP WITH ARTISTS 42 DEFENDING CREATIVITY 44 CASE STUDY: CAMILA CABELLO 45 CASE STUDY: MORGAN EVANS 46 CASE STUDY: THE REVIVALISTS See www.ifpi.org for details of the full Global Music Report 2018 including a premium 'Data and Analysis' section. www.ifpi.org © IFPI 2018 @IFPI_org All data, copy and images are subject to copyright and may not be reproduced, Designed by Studiomade transmitted or made available without permission from IFPI. 6 · gloBAL MUSIC MARKET 2017 FIGURES GLOBAL MUSIC REPORT 2018: STATE OF THE INDUSTRY GLOBAL MUSIC MARKET 2017 IN NUMBERS 41.1% 54% Growth in Digital share of streaming revenue global revenue 8.1% Global revenue growth -20.5% Download revenue -5.4% Physical revenue SAAY photo courtesy of Universal Music Group Coely photo by Jokko Anitta photo by Fernando Tomaz Khalid photo by Kacie Tomita GLOBAL MUSIC REPORT 2018: STATE OF THE INDUSTRY Introduction · 7 Introduction SEEKING FULL AND FAIR VALUE FOR MUSIC IN A CHANGING WORLD What a year for music! From Ed Sheeran’s In pursuit of this mission, the industry incredible album ÷, to the global smash has embraced technology. It is no accident hit Despacito and the broadening appeal that music is driving engagement with new of Latin music, to artists such as Camila products and services. Record companies Cabello reaching new audiences world- are working with existing and start-up tech- wide. Artists across genres, from hip-hop nology companies, licensing their music to to classical, are creating incredible art and create great experiences for fans. This is FRANCES MOORE the soundtrack of fans’ lives. happening with traditional partners, such CHIEF EXECUTIVE, IFPI Music is on an extraordinarily exciting, as audio streaming services, and new ones, albeit complex and challenging, path – artis- such as social media platforms. They are tically, technologically and commercially. taking on complex challenges, building sys- Undergoing its digital transition earlier tems and clearing rights to bring about excit- than others, music initially struggled to find ing, yet easily accessible, music experiences. The music community is seeking a leg- a way to connect artists and their music with In addition, record companies are work- islative solution to secure a level playing fans. Record companies faced the challenge, ing to develop new markets. The virtuous field for all music rights holders and digi- working not only at the forefront of support circle of investment is extending into new tal services. This is not just essential for for artistic creation, but digital and techno- parts of the world, helping to develop local music to thrive in today’s global market, logical innovation as well. artists and enrich local music cultures. The but to create the right environment for it to This year’s IFPI Global Music Report music emerging from these markets is sub- do so in the future. demonstrates that these efforts are yield- sequently being lifted onto a global stage The global music industry is in a constant ing results. After 15 years of decline, global and connecting with fans around the world. state of change and record companies are recorded music achieved its third consecu- The music world continues to contend with driving it, with energy and purpose. tive year of growth last year, with more fans the evolving challenge of copyright infringe- listening to more music around the globe in ment, with stream ripping the latest and fast- increasingly rich and immersive ways. est growing form. We are coordinating global But much remains to be done. Record content protection to tackle this. We are mak- companies are dedicated to ensuring that full ing progress, but more must be done. and fair value is being returned for music as it Ultimately, the music community’s goal is consumed in its many different and changing of realising full and fair value for music is forms. This is crucial to maintaining the virtu- dependent on a fair digital marketplace. For ous circle, in which record companies continue that simple reason, it is united in its cam- to use the revenue from successful projects paign to fix the value gap, the mismatch to invest in discovering and nurturing artists, between the value created by some digital thereby developing and delivering great music platforms from their use of music and what to fans around the world. they pay those creating and investing in it. Frances Moore photo by Graham Flack 8 · gloBAL charts GLOBAL MUSIC REPORT 2018: STATE OF THE INDUSTRY Global Charts MOST POPULAR ARTISTS AND BEST SELLERS OF 2017 TOP 10 GLOBAL RECORDING ARTISTS 1 2 3 Ed Sheeran Drake Taylor Swift 4 5 6 Kendrick Lamar Eminem Bruno Mars 7 8 9 The Weeknd Imagine Dragons Linkin Park 10 2016 TOP 10 LIST: 1 Drake 6 Twenty One Pilots 2 David Bowie 7 Beyoncé 3 Coldplay 8 Rihanna 4 Adele 9 Prince The Chainsmokers 5 Justin Bieber 10 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 2018: STATE OF THE INDUSTRY gloBAL charts · 9 GLOBAL TOP 10 DIGITAL SINGLES OF 2017 GLOBAL TOP 10 ALBUMS OF 2017 TITLE AND ARTIST GLOBAL TOTAL TITLE AND ARTIST GLOBAL TOTAL CONVERTED ALBUM UNITS (M) TRACK EQUIVALENT (M) Shape of You 26.6 ÷ 6.1 1 Ed Sheeran 1 Ed Sheeran Despacito 24.3 Reputation 4.5 2 Luis Fonsi 2 Taylor Swift Something Just Like This 11.5 Beautiful Trauma 1.8 3 The Chainsmokers 3 P!NK and Coldplay That’s What I Like 9.7 Human 1.6 4 Bruno Mars 4 Rag'n'Bone Man Closer 9.0 The Thrill Of It All 1.4 5 The Chainsmokers 5 Sam Smith HUMBLE. 8.3 Songs Of Experience 1.3 6 Kendrick Lamar 6 U2 Attention 8.3 DAMN. 1.3 7 Charlie Puth 7 Kendrick Lamar I’m the One 7.9 Revival 1.1 8 DJ Khaled 8 Eminem Perfect 7.9 Harry Styles 1.0 9 Ed Sheeran 9 Harry Styles Believer 7.8 24K Magic 1.0 10 Imagine Dragons 10 Bruno Mars Source: IFPI. Units include single-track downloads and track-equivalent ad- supported audio and subscription audio streams. Video streams are excluded. For full top 50 global albums and top 20 digital singles, please see the Data and Analysis section of the full report.
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