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Canada Music Industry Report BUZZANGLE MUSIC CANADA MUSIC INDUSTRY REPORT A REPORT ON 2016 CANADA MUSIC INDUSTRY CONSUMPTION B UZZA NGLE MUSIC 2016 CANADA REPORT CONTENTS INDUSTRY INTRODUCTION CONSUMPTION BY P. 3 DAY OF WEEK 01 06 P. 24 HIGHLIGHTS INDUSTRY TITLE P. 4 DISTRIBUTION 02 07 P. 31 INDUSTRY CONSUMPTION INDUSTRY OVERVIEW CHARTS P. 34 03 P. 14 08 INDUSTRY CONSUMPTION CLOSING BY GENRE P. 63 04 P. 17 09 INDUSTRY CONSUMPTION BY RELEASE PERIOD 05 P. 20 01 • INTRODUCTION B UZZA NGLE MUSIC 2016 CANADA REPORT WELCOME TO THE BUZZANGLE 2016 YEAR-END REPORT Welcome to BuzzAngle Music’s 2016 report shifting to subscription-based consumption. on Canada music consumption, our first-ever The combination of these two trends will yearly report. 2016 was another successful result in higher average revenue per user and year in music, with overall consumption rising more profitability for the industry. 8.5% over 2015, marking the second year in a row with solid growth. In addition to providing the industry with a great business model, streaming services The continued explosion of audio stream offer music lovers a much wider selection of consumption, which increased 218.7% to music at their fingertips. In 2016, there were 22.3B streams, fueled this increase. Both 16.8M unique songs played via a streaming album sales and song sales continued to service compared to 2.3M songs that were decline but the transition to these new purchased. An average day’s audio-streaming access methods has shown to provide overall volume in 2016 (97M) was much larger than growth and a sustainable business model for the entire year’s volume of song sales (75M). the future. More music is being listened to by more people than ever before. Breaking down the tremendous streaming growth shows what is perhaps the most The BuzzAngle 2016 Canada music report is important stat of the year: the percentage of filled with stats on consumption, top artists, subscription streams rose from 56% of the albums and songs, as well as a number of total in 2015 to 72% of the total in 2016. interesting and fun highlights. We hope you enjoy it and we welcome any feedback. The number of 2016 subscription streams grew over 4x the 2015 subscription streams Best wishes for a healthy, happy and amount. So not only is streaming growing prosperous 2017! nicely, but the overall composition is also 3 02 • 2016 HIGHLIGHTS B UZZA NGLE MUSIC 2016 CANADA REPORT CANADA HIGHLIGHTS OVERALL ALBUM AUDIO STREAMS CONSUMPTION reached a new (including audio streams only) for the year was RECORD HIGH OF UP 8.5% 22.3 BILLION OVER 2015 staggering 218% over 2015 (7 billion streams). Total (43.3 million project units in 2016 vs. 39.5 million on-demand streams reached a new time high with album project units in 2015). If you include video 35.6 billion streams in 2016, up 84% over 2015 (19.3 streams, the total consumption was 52.2 million billion streams). project units in 2016, up 8.4%. SONG CONSUMPTION SUBSCRIPTION for the year was STREAMS streams grew a staggering UP 60% OVER 2015 308.5% (224.3 million song project units in 2016 vs 139.8 and accounted for 71.9% of total audio streams million song project units in 2015). in 2016, up from 56.1% of total in 2015. Calculation Notes: • The 2016 measurement period is 1/1/2016 through 12/29/2016. • The 2015 measurement period is 12/29/2014 through 12/31/2015. Album Consumption is calculated as follows: • Total Album Project Units (Audio Streams) = Album Sales + (Song Sales/10) + (On-Demand Audio Streams/1500 • Total Album Project Units (Total Streams) = Album Sales + (Song Sales/10) + (On-Demand Audio Streams/1500) + (On-Demand Video Streams/1500) BuzzAngle Music does not provide any weighting factors on the physical album sales market. All units are exactly as reported from the retailers. Song Consumption is calculated as follows: • Total Song Project Units (Audio Streams) = Song Sales + (On-Demand Audio Streams/150) • Total Song Project Units (Total Streams) = Song Sales + (On-Demand Audio Streams/150) + (On-Demand Video Streams/150) 4 02 • 2016 HIGHLIGHTS B UZZA NGLE MUSIC 2016 CANADA REPORT THERE WERE MORE Drake STREAMS IS on any given day during 2016 (daily average = 97.5 ARTIST OF THE YEAR million) than there were with over 656 thousand in total album consumption SONG DOWNLOADS units, His Views is the album of the year with 456 FOR THE ENTIRE YEAR thousand total album units and One Dance is the (75.3 Million). song of the year with 777 thousand total song consumption units. OVER PHYSICAL ALBUM SALES 16.8 MILLION WERE DOWN UNIQUE SONGS 12.9% were streamed in 2016, 2.3 million unique songs (12.2 million in 2016 vs 14.0 million in 2015). Physical were purchased and 493 thousand unique albums album sales accounted for 58% of all album sales in were purchased. 2016. OVERALL ALBUM SALES VINYL ALBUM SALES WERE DOWN WERE UP 18.2% 57.8% compared to 2015 (20.9 million in 2016 vs 25.6 over 2015 while CD album sales were down 15.1%. million in 2015). Vinyl albums accounted for 5.3% of all physical album sales. DIGITAL ALBUM SALES SONG SALES declined over the previous year at a greater percentage (DOWNLOADS) IN 2016 WERE DOWN than physical album sales for the first time; DIGITAL ALBUM SALES WERE DOWN 22.2% compared to 2015 (75.3 million in 2016 vs 96.8 24.6% million in 2015). (8.7 million in 2016 vs 11.6 million in 2015). 5 01 • INTRODUCTION B UZZA NGLE MUSIC 2016 CANADA REPORT INDUSTRY TRENDS • GENRE Pop (17.3% of total) was the top genre 41% of all album sales in 2016 were from in terms of total album consumption, the combined Rock genres with more than followed by Hip-Hop/Rap (11.8%). Children’s 8.6 million sales. 15% were Pop titles, 12% and Country were the top-growing genres, were Urban albums and 11% were Country gaining 23.9% and 23.6% respectively versus albums. 2015. 69% of vinyl albums sold in 2016 were from Pop (18.2%) was the top genre in terms of the combined Rock genres. 10% were Urban total song consumption, with Hip-Hop/Rap titles and 9% were Pop titles. (15.7%) second. 28% of Song sales in 2016 were titles from Rock Songs (Rock, Alternative, Metal, Indie the combined Rock genres, 22% were Pop Rock, Punk, Folk) were the most streamed songs, 18% were Urban and 11% were songs in 2016 accounting for 26.2% of Country songs. all streams. 23.9% were from titles in the combined Urban genres Urban songs (Hip- Hop/Rap and R&B) and 17.5% were Pop songs. INDUSTRY TRENDS • RELEASE PERIOD Nearly half (47%) of all forms of New Releases, less than eight weeks old, consumption (physical/digital album sales, represented 10% of audio streams, but just song sales and audio streams) in 2016 was over 20% of album sales. from Deep Catalog titles, those released over three years ago. For video streams, it is 56%. INDUSTRY TRENDS • DAY OF WEEK Friday was the biggest day of the week for Friday and Thursday were the largest vinyl Album sales (19.2% of the total), consistent album sales days of the week, accounting for on both digital (20.4%) and physical album 18% and 16% respectively. sales (18.5%). Vinyl sales on Saturday showed the largest Friday (new release day) was the day of the drop, going from 16.99% of the total in 2015 week that saw the largest increase in album to 14.4% of the total in 2016. sales (up 1.6%) compared to 2015, going from 17.6% to 19.2% of the total in 2016. 6 01 • INTRODUCTION B UZZA NGLE MUSIC 2016 CANADA REPORT Vinyl album sales experienced a unit Audio streaming on Friday was the day with increase of 96% on Fridays, compared to the largest unit growth; up 254% over 2015. 2015. Monday had the largest unit increase of 109% compared to 2015. Video streaming on Saturday was the day with the largest unit growth; up 12.7% over The largest days for audio streaming activity 2015. (15.1% of the total) were Wednesday, Thursday and Friday. Saturday was the largest day for video streams (16.2% of the total). LARGEST SINGLE DAYS OR WEEKS OF THE YEAR FOR MUSIC PURCHASING AND LISTENING STREAMING ACTIVITY The week of April 8 was the largest streaming week of the year with a combined The biggest single day for total on-demand audio/video total of 773.7 million. streams in 2016 was Christmas Eve, December 24th – 129,908,261. ALBUM SALES The biggest single day for audio on-demand The biggest single day for album sales (as streams in 2016 was December 9, with well as physical album sales) in 2016 was 87,034,650 streams (the release of J.Cole Friday, December 23, with 151,308 albums album). sold (120,866 physical album sales). J. Cole had 10 out of the top 15 songs Friday, April 29 was the biggest single day streamed on December 9, accounting for for digital album sales with 95,550 units. 3.6million audio streams (21 songs total) for That’s when Drake’s album Views arrived. that one day. The Weeknd was the next most It was downloaded 62,690 times that day, streamed artist on December 9, with 2.1 accounting for 66% of all the date’s digital million streams (25 songs).
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