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Canada Mid Year Nielsen Music Report July 2018

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Canada Mid Year Nielsen Music Report July 2018 NIELSEN MUSIC MID-YEAR REPORT CANADA 2018 Copyright © 2018 The Nielsen Company 1 INTRODUCTION Welcome to the Nielsen Music Mid-Year Report, which provides an exclusive glimpse at the music industry’s leading trends, data and insights from the past six months. Paul Shaver The music industry is still in the midst of an exciting growth spurt that led to Vice President Nielsen 15-year record revenues for the major label groups in 2017 and has continued Entertainment to break new consumption milestones for the first half of 2018. Canada - Music | Sports That included a 18.1% increase in total album equivalent audio consumption (album sales + track equivalent albums + audio on-demand streaming equivalent albums), led by a 53.3% increase in audio on-demand streams, which reached a six-month record of nearly 27 billion. Canadian artists achieved major successes in the first half of 2018. The Weeknd, Shawn Mendes and Tory Lanez scored number one consumption albums, while Jim Cuddy, Éric Lapointe and Coeur De Pirate picked up chart-topping album sellers. At radio, The Weeknd, Dallas Smith, Dean Brody, The Sheepdogs and Arcade Fire landed format chart-toppers while Loud Luxury, Lindsay Ell and Black Pistol Fire scored their first airplay number one songs. And then of course there’s Drake, CANADIAN whose two singles “God’s Plan” and “Nice For What” spent a combined total of 14 weeks at the top of the Billboard Canadian Hot 100. ARTISTS And with streaming records still being broken on a regular basis in recent ACHIEVED months, there’s no reason to expect this momentum to slow down any time soon. In fact, we’re thrilled to now have Amazon Prime Music fully integrated MAJOR across our Music Connect desktop and mobile app platforms. For a full list of updates to our products and services, see the highlights on the following page. SUCCESSES Over the course of the next 20-plus pages, Nielsen Music has compiled all IN THE FIRST the essential learnings you need to power the rest of your 2018. And as always, we’d love to hear from you to learn how we can provide more tools to prepare HALF OF 2018 you for the coming months. 2 Copyright © 2018 The Nielsen Company WHAT’S NEW FROM NIELSEN MUSIC Amazon Canada is now fully integrated into Music Connect, informing Nielsen Streaming On-Demand (Total and Audio splits) data. Music Connect subscribers in the U.S. and Canada can now upgrade for greater customization and control via real-time, direct access to the Music Connect API. Plays measured by Nielsen Music on paid-subscription tiers of streaming services will be given more weight on Music Connect calculations than those on ad-supported services. These will be reflected on the Billboard charts as well. Daily building charts are now available in Nielsen’s Music Connect Mobile app in the U.S. and Canada. Copyright © 2018 The Nielsen Company 3 Copyright © 2017 The Nielsen Company CONTENTS 2018 MID-YEAR INDUSTRY HIGHLIGHTS 5 2018 MID-YEAR MOMENTS 8 2018 MID-YEAR TIMELINE 14 2018 IN MEMORIAM 16 2018 MID-YEAR CHARTS 17 NOTE: The term “total album equivalent consumption” in this report describes the number of physical and digital albums that were sold and the total number of album equivalent songs from downloads and song streaming volume. For the sake of clarity, the definition of album equivalent consumption does not include listening to music on broadcast radio or digital radio broadcasts. Unless otherwise noted, all numbers are volume. 4 Copyright © 2018 The Nielsen Company MID-YEAR 2018 TOTAL ALBUM EQUIVALENT CONSUMPTION* (ALBUM + TEA + ON-DEMAND AUDIO/VIDEO SEA) 2018 2017 % CHG. 31.3M 26.1M +19.8% ON-DEMAND SONG STREAMING - AUDIO (ALBUM + TEA + ON-DEMAND AUDIO SEA) 2018 2017 % CHG. 2018 2017 %% CHG.CHG. 27.0M 22.9M +18.1% 26.8B 17.5B +53.3% ON-DEMAND SONG STREAMING* (AUDIO + VIDEO) ON-DEMAND SONG STREAMING - VIDEO* 2018 2017 % CHG. 2018 2017 % CHG. 33.1B 22.3B +48.7% 6.4B 4.8B +32.0% TOTAL ALBUM SALES + TEA 2018 2017 % CHG. 9.2M 11.2M -18.4% *A video streaming provider does not report full depth data. * Track Equivalent Albums (TEA) ratio of 10 tracks to 1 album and Streaming Equivalent Albums (SEA) ratio of 1,500 streams to 1 album. Copyright © 2018 The Nielsen Company Data figures represent 12/29/2017-6/28/2018. 5 Copyright © 2017 The Nielsen Company ALBUM EQUIVALENT CONSUMPTION DIGITAL (DIGITAL ALBUMS + TEA + ON-DEMAND AUDIO SEA) 2018 2017 % CHG. 22.9M 18.1M +26.6% TOTAL ALBUM SALES (PHYICAL + DIGITAL) 2018 2017 % CHG. 6.7M 8.1M -17.1% DIGITAL ALBUM SALES 2018 2017 % CHG. 2.5M 3.2M -22.0% PHYSICAL ALBUM SALES (INCLUDES VINYL LP) 2018 2017 % CHG. 4.2M 4.8M -13.7% VINYL LP SALES 2018 2017 % CHG. 0.4M 0.3M +66.6% DIGITAL TRACK SALES 2018 2017 % CHG. 24.9M 31.8M -21.8% Data figures represent 12/29/2017-6/28/2018 6 Copyright © 2018 The Nielsen Company ALBUM EQUIVALENT CONSUMPTION DIGITAL (DIGITAL ALBUMS + TEA + ON-DEMAND AUDIO SEA) CATALOGUE VS. CURRENT SALES (CATALOGUE IS DEFINED AS OVER 18 MONTHS) TOTAL ALBUM EQUIVALENT CONSUMPTION CURRENT 42.9% 43.6% 17.9% CATALOGUE 57.1% 56.4% 21.3% OVERALL ALBUMS CURRENT 45.2% 45.9% -18.4% CATALOGUE 54.8% 54.1% -15.9% DIGITAL ALBUMS CURRENT 44.7% 47.8% -27.0% CATALOGUE 55.3% 52.2% -17.5% PHYSICAL ALBUMS CURRENT 45.4% 44.7% -12.2% CATALOGUE 54.6% 55.3% -14.9% DIGITAL TRACKS CURRENT 39.7% 42.1% -26.3% CATALOGUE 60.3% 57.9% -18.5% OVERALL ON-DEMAND AUDIO STREAMS CURRENT 42.5% 43.0% 51.3% CATALOGUE 57.5% 57.0% 54.7% Data figures represent 12/29/2017-6/28/2018. Data figures represent 12/29/2017-6/28/2018 Copyright © 2018 The Nielsen Company 7 Copyright © 2017 The Nielsen Company TOP MID-YEAR MOMENTS GRAMMY GAINS The 60th Annual Grammy Awards proved to be a big night in sales bumps for Canadian artists, led by Alessia Cara, who took home the coveted Best New Artist trophy, and Bruno Mars, who swept all six of his nominated categories. ALESSIA CARA Best New Artist - 421% album sales gain, 153% digital track gain, 25% On-Demand streaming gain LEONARD COHEN Best Rock Performance - 9% Audio consumption increase THE WEEKND The Weeknd - Best Urban Contemporary Album BRUNO MARS 205% sales gain for 24K Magic, 10% On-Demand streaming increase for “That’s What I Like”. 3.5 million On-Demand streams for “Finesse (Remix)” with Cardi B 8 Copyright © 2018 The Nielsen Company STREAMING SURGE ALBUM AUDIO, ON-DEMAND DRIVES RECORD FIRST HALF FOR MUSIC CONSUMPTION Total album audio consumption continues to surge in 2018, surpassing 2017’s record figures. Overall album audio consumption increased 18.1% to 27 million units, up from 23 million during the same period in 2017. Leading the charge was substantial growth for on-demand audio and video streaming, which grew a combined 48.7%. The increased activity helped offset continued declines in album sales, which declined 17.1% to 6.7 million units and digital song sales, which slipped 21.8% to 24.9 million units. HIP-HOP’S ASCENT R&B/HIP-HOP CONTINUES TO LEAD AT STREAMING SERVICES, RADIO R&B/Hip-hop continues to grow, with 21.3% of total album audio equivalent volume (album + TEA + audio SEA.) Along with big consumption numbers from international stars of the genre and the continued success of Canadians Drake and The Weeknd, a number of breakout Canadian urban acts have contributed to the genre’s explosion. Juno Award-winning singer-songwriters Daniel Caesar and Jessie Reyez have accumulated over 28 million and 11 million audio on-demand streams, respectively, during the first half of 2018, while rappers Nav and Tory Lanez have totaled 58 million and 62 million audio on-demand streams, respectively, after releasing new albums during the first six months of 2018. Copyright © 2018 The Nielsen Company 9 Copyright © 2017 The Nielsen Company RADIO SPOTLIGHT HOW CANADIAN ARTISTS RULED THE AIRWAVES At CHR, The Weeknd’s team-up with Kendrick Lamar, “Pray For Me,” spent two weeks at No. 1, marking the singer’s third chart-topping hit at the format. With “Body,” dance duo Loud Luxury became the first Canadian act to top the format chart with their first charted single since Avril Lavigne’s “Complicated” in 2002. In the Country format, Dallas Smith scored his fifth No. 1 (and fourth straight) Country hit with “Sleepin’ Around.” Dean Brody (pictured right) picked up his third No. 1 and first since 2013 with “8th Day.” And newcomer Lindsay Ell scored her first No. 1 song with “Criminal.” The Sheepdogs picked up their third No. 1 song on the Mainstream Rock chart with “I’ve Got A Hole Where My Heart Should Be.” In Modern Rock, Arcade Fire’s “Creature Comfort” gave the band it’s third chart-topper at the format, while breakouts Black Pistol Fire scored a No. 1 hit with their first charted song, “Lost Cause.” DRAKE THE RAP SUPERSTAR’S REIGN CONTINUES WITH 14 WEEKS AT NO. 1 ON THE HOT 100 AND BLOCKBUSTER NEW ALBUM Drake made a triumphant return to the chart with singles “God’s Plan” and “Nice For What,” which have spent a combined 14 of the first 26 weeks of the year at No. 1 on the Billboard Canadian Hot 100, with 98 million and 49 million on-demand streams, respectively. The singles previewed Drake’s blockbuster album Scorpion, which kicked off its first weekend of release on June 29 with a combined 33 million streams for its tracks.
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