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State of the Industry STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY WELCOME 3 Welcome ime and time again, The increasingly connected global T throughout my career, I have music landscape is enabling us to been privileged to witness explore new genres, sounds and artists, music’s power to bring us together. no matter where they originate, and for Language and culture may vary, but artists to enjoy the opportunities that music transcends borders and unites us. I have had to engage with audiences This year’s Global Music Report around the world. explores how music has become truly As this journey continues, we must global – more so than ever before. ensure the right environment is created Through the work and dedication of to make this success sustainable for artists, record companies and their the future; we must continue to work partners, music from vibrant and to establish a music ecosystem that is diverse regions is being sought out healthy and open to all, where music is and loved by fans in every corner of valued and respected. PLÁCIDO DOMINGO the world. CHAIRMAN, IFPI This is an exciting We are succeeding In an attention time of growth for because – even as economy, even the the music industry traditional ways of most original and and we’ve increased doing business are compelling talent our investment being upended – we’ve needs amplification to in talent and the worked to anticipate cut through the noise. creative process. music’s creative and We have the creative We’re partnering commercial evolution expertise, global with our artists to and continued investing impact, and cultural continue advancing in our artists, driving influence to make innovative and unique innovation and actively sure our artists aren’t opportunities to shaping our future by just heard, but that connect with audiences continuing to transform fans all over the world in more corners of the ourselves. genuinely engage, world than ever before. react and care. ROB STRINGER SIR LUCIAN GRAINGE MAX LOUSADA CEO, Sony Music Chairman & Chief CEO of Recorded Music, Entertainment Executive Officer, Warner Music Group Universal Music Group NIELSEN MUSIC CONNECT THE INDUSTRY’S PREMIER MUSIC PERFORMANCE MEASUREMENT PLATFORM Gain access to the industry-leading global data analysis platform that delivers a comprehensive view of music streaming and sales for artists and songs in a single Web-based tool. To learn more, contact [email protected] Copyright © 2019 The Nielsen Company (US), LLC. All Rights Reserved. IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY CONTENTS 5 Contents State of the Industry 6 Global Music Market 2018 in Numbers 7 Introduction - Frances Moore 8 Global Charts 12 Global Market Overview 15 2018 Figures by Format 16 2018 Figures by Region 18 The Dynamic Nature of High-Potential Markets 24 The Global Story of Local Genres 26 Case Study: Aya Nakamura 27 Case Study: George Ezra 29 Case Study: J Balvin 30 The Value of a Label 36 Fostering Fair Marketplaces so Music Continues to Thrive www.ifpi.org © IFPI 2019 @IFPI_org All data, copy and images are subject to copyright and may not be Designed by Data Design reproduced, transmitted or made available without permission from IFPI 6 GLOBAL MUSIC MARKET 2018 IN NUMBERS IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY Global Music Market 2018 in Numbers +9.7% +32.9% Global revenue Growth in growth paid streaming revenues +34.0% 46.9% Growth in Streaming overall streaming share of global revenues revenues -21.2% -10.1% Download Physical revenue revenue decline decline IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY INTRODUCTION 7 Introduction Music becomes truly global usic has truly become global – Korea fuelling growth. The Middle East M in ways never before imagined. and North Africa are now commanding From the South Korean boy attention. Crucially, these territories, band, BTS, capturing the hearts of fans and the artists emerging from them, from Seoul to Rio, to the Colombian are already reaping real benefit. Record reggaeton singer, J Balvin, taking his place company investment, local partnerships amongst the global pop elite, to emerging and increasing availability of mobile data stars like Mali-born French artist, Aya have given rise to a rich and diverse global Nakamura, showing language is no barrier landscape with fans in each territory to reaching beyond home borders. The accessing music through a unique and global music community has never been evolving combination of formats and more connected, and fans and artists alike services. As this continues, revenue is FRANCES MOORE are seizing the opportunities of this new returned to the artists, the cultures and CHIEF EXECUTIVE, IFPI era to enjoy and share the music they love, the communities to spark the next cycle no matter where it comes from. of creative endeavour. We have now seen four consecutive Record companies continue to hone years of growth, driven by great music their partnerships with artists, offering from incredible artists in partnership expertise and resources on the ground with talented, passionate people in record to help navigate these landscapes and companies around the world who help bring their music to their fans in the most them realise their creative and commercial effective and affecting ways. potential. Today, this partnership takes There is still much to be achieved to many forms, with artists drawing on the ensure that these positive developments extensive expertise and resources record continue at pace. We are campaigning for companies provide. Ultimately, it is forged music to be fairly valued in all its forms. on the simple premise of a shared love of We are working for music copyright to music and mutual respect. be recognised and respected around One of the most exciting aspects of the world, and we remain committed to this global growth is the regions driving establishing a level playing field when it it. For the fourth year in a row, Latin comes to negotiating a fair deal for those America has seen the largest regional who create music. Above all, we are growth, with countries like Brazil leading working to ensure that music continues the way. Asia has become a world player, on its exciting, global journey. with markets like China and South 8 GLOBAL CHARTS IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY Global Charts The most popular artists and best sellers of 2018 IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY GLOBAL CHARTS 9 Top 10 Global Recording Artists 01 02 Drake BTS 03 04 Ed Sheeran Post Malone 05 06 Eminem Queen 07 08 Imagine Ariana Dragons Grande 09 10 Lady Gaga Bruno Mars IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY GLOBAL CHARTS 11 Global Top 10 Global Top 10 Digital Singles Albums of 2018 of 2018 Artist & Title Global converted Artist & Title Global converted single units (m) single units (m) 01 01 Camila Cabello 1 9.0 Cast of 'The Greatest Showman' 3.5 (feat. Young Thug) The Greatest Showman (OST) Havana 02 02 Drake 15.3 BTS 2.7 God's Plan Love Yourself 'Answer' 結 03 03 Ed Sheeran 14.9 BTS 2.3 Shape of You Love Yourself 'Tear' 轉 04 04 Ed Sheeran 13.5 Lady Gaga 1.9 Perfect A Star Is Born (OST) 05 05 Maroon 5 11.9 Johnny Hallyday 1.7 (feat. Cardi B) Mon Pays C'est L'amour Girls Like You 06 06 Luis Fonsi 11.8 Ed Sheeran 1.3 (feat. Daddy Yankee) Despacito ÷ 07 07 Tia Ray 10.9 Queen 1.2 Be Apart Bohemian Rhapsody 08 08 The Chainsmokers 10.0 P!nk 1.2 & Coldplay Beautiful Trauma Something Just Like This 09 09 Marshmello 9. 6 Eminem 1.0 & Anne-Marie Kamikaze FRIENDS 10 10 Post Malone 9. 2 Cast of 'Mamma Mia! 0.9 (feat. Ty Dolla $ign) Here We Go Again' Psycho Mamma Mia! Here We Go Again (OST) 12 GLOBAL MARKET OVERVIEW IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY 25 0.6 0.7 0.8 1.0 1.0 20 1.0 0.4 1.2 0.4 2.7 1.3 0.4 0.3 0.3 0.3 0.3 0.4 2.4 15 1.3 0.3 2.3 1.4 1.5 1.6 4.7 1.8 1.9 2.0 23.3 5.2 21.7 5.6 10 20.0 19.4 18.1 16.4 14.2 12.0 2.3 Global 10.5 9.0 8.3 7.7 6.8 5.8 6.0 2.6 3.2 5 3.8 8.9 4.4 4.3 4.0 2.0 3.7 3.9 4.3 6.7 1.0 2.7 3.4 4.7 0.4 1.9 2.9 0 0.1 0.2 0.2 0.3 0.4 0.4 0.7 1.0 1.4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total revenue Market 23.9 22.4 20.8 20.8 20.2 19.6 18.4 17.1 16.0 15.1 15.0 15.1 14.8 14.3 14.8 16.2 17.4 19.1 $US billions Overview Physical Digital (excluding streaming) Streaming Performance rights Synchronisation revenues Dynamic, diverse markets drive global growth Synchronisation revenues 2% USA South Korea Performance 14% rights 25% Japan China Physical In 2018, the global recorded music market grew This growth was predominantly driven by a 32.9% Downloads & 12% other digital UK Australia by 9.7%. It is the fourth consecutive year of global rise in paid streaming, that now accounts for 37.0% Subscription of total revenue.
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