sign in sign up
<<
Home , 2018 in Latin music, Ava Max, Lous and the Yakuza, Max Lousada, Nabil Elderkin, Record label

GLOBAL REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 3

CONTENTS STATE OF THE INDUSTRY Global Music Market 2020 in Numbers 04

Introduction 05

Global Charts 06

Global Market Overview 2020 10

Our mission to put creators Our continuing commitment The universe of opportunities 2020 Figures by Format 12 first important is to harness our collective for artists and labels is than ever in the past year. talents and resources to diverse, vast, and Hits can now come from shape culture through the expanding. There’s strong 2020 Figures by Region 14 anywhere and artists are power of music and the growth in both subscription empowered by -focused artistry and creativity at its and ad-supported streaming, Record Companies, Driving Global Opportunities for Music 16 insights, tools and resources core. When, in collaboration with plenty of runway to reach global audiences. with our artists, come around the globe. At the barriers and as a company and same , the pandemic Partnering with Artists, Delivering for Fans 24 borders of language, culture as a community, what we can has accelerated consumer Case Study: Chen Li Nong 28 and genre , achieve is truly remarkable. adoption in areas like gaming, Case Study: music has made an incredible That mission is especially live streaming, social media 30 impact over the last year, important now, and in- fitness. Music Case Study: 32 bringing communities has never needed music more. is a fundamental driving

SIR together to tackle the Chairman & Chief Executive force in the success of these Officer, Beyond the Music 34 challenges facing of us. platforms, and we’re at the

ROB STRINGER Chairman, Music Group forefront of inventing exciting new creative and commercial Creating a Fair Environment to Enable Music to Thrive 40 .

STEVE COOPER CEO, © IFPI 2021 ALL DATA, COPY AND IMAGES ARE SUBJECT TO AND MAY NOT BE REPRODUCED, TRANSMITTED OR MADE AVAILABLE WITHOUT PERMISSION WWW.IFPI.ORG FROM IFPI. USE OF THIS REPORT, IFPI GLOBAL MUSIC REPORT (2021 @IFPI_ORG EDITION) IS GOVERNED BY TERMS OF USE (GMR.IFPI.ORG/TERM-OF-USE) DESIGNED BY DATA DESIGN AND CONTENT USAGE RULES (GMR.IFPI.ORG/CONTENT-USAGE). 4 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 5 GLOBAL MUSIC MARKET INTRODUCTION 2020 IN NUMBERS THE ENDURING POWER OF MUSIC

As the world contends with the and fan into of creator and co-creator. These innovations COVID-19 pandemic, we have once will continue to add to the rich and diverse ways we can bring music into . again been reminded of the enduring power of music. IFPI continues to for a better legal environment for +7.4% -4.7% our member record companies to conduct business in around the GLOBAL REVENUE GROWTH PHYSICAL REVENUE DECLINE any in the music community have been deeply impacted. world. Our work involves fighting for and defending the Live music has been hold and restrictions have been rights of those that make music possible. A long-term campaign put in place. For our part, record labels worked to ensure in China bore fruit last year when the Government established M artists provided with the resources and support full rights. For , revenue for right to create and record their music. In a time of such uncertainty, holders will be generated for the use of recordings it has been wonderful to have new music – some planned, performances and broadcasts, enabling further re-investment some completely unexpected – experienced and enjoyed community in the country. believe it will serve as around the world. a key of how putting the right laws in place can shape a bright future for music. The is accustomed to constant change. Fortunately, through the years the groundwork that has been The music community has also been working to examine its +18.5% -10.1% broader contribution to society and its response to social GROWTH IN PAID STREAMING PERFORMANCE RIGHTS laid by record companies to invest in music and license it to an REVENUES REVENUE DECLINE expanding and diverse range of digital services has proved its justice movements around the world. These challenges will not worth, with digital revenue continuing to growth in the be solved overnight, but record companies are committed to industry. The work by record companies years ago has doing the work to develop their own environment and to make made possible the positive developments we are experiencing a meaningful, lasting contribution to the world we live in. in the recorded music industry . These are not easy times, but the music community – with its We are seeing this growth happen around the world, as record creativity, innovation and determination – continues to drive companies continue to expand their geographical footprint and forward, to an even greater future. A future where the power of cultural reach to bring music to everyone, wherever they want to music us all closer together. listen to it. They have opened new offices, provided employment, 62.1% and signed new artists, proving the industry to be more globally STREAMING SHARE OF connected today than at any stage in its evolution. GLOBAL REVENUES The sector has continued to innovate and create exciting new ways to bring music to fans, connecting us with our favourite artists and introducing us to new ones. Fans can share in cutting- edge, immersive digital experiences, for truly global events. Record labels are creating further opportunities for music to be part of our experience with short FRANCES MOORE form video apps, helping to develop the relationship of the artist CHIEF EXECUTIVE, IFPI

Julie Bergan photo by Paul Edwards 6 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 7

02 03 04

TAYLOR SWIFT

05 06 07

Most popular artists and best sellers of 2020

IFPI TOP 10 GLOBAL RECORDING ARTISTS OF 2020 BILLIE POST EILISH MALONE

08 09 10

01 BTS ARIANA JUICE JUSTIN GRANDE WRLD BIEBER 8 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 9

GLOBAL TOP 10 DIGITAL GLOBAL TOP 10 GLOBAL TOP 10 ALBUM SINGLE CHART 2020 ALL-FORMAT CHART 2020 SALES CHART 2020

ARTIST & GLOBAL ARTIST & ARTIST & GLOBAL TRACK NAME CONVERTED SSE ALBUM NAME ALBUM NAME UNITS

The Weeknd BTS BTS Blinding 2.72BN MAP OF THE : 7 MAP OF THE SOUL: 7 4.80M 01 01 01

Tones and I The Weeknd BTS Monkey 2.34BN After Hours BE (Deluxe Edition) 2.69M 02 02 02

BILLIE EILISH Roddy Ricch ALL FALL ASLEEP, Kenshi Yonezu The Box 1.67BN ? STRAY SHEEP 2.54M 03 03 03

SAINtJHN BTS Roses 1.64BN BE (Deluxe Edition) folklore 1.99M 04 04 04

Dua Lipa Don’t Start Now 1.62BN Fine Line THE ALBUM 1.51M 05 05 05

Future (. Drake) Post Malone AC/DC Is Good 1.57BN ’s Bleeding POWER 1.37M 06 06 06

Xiao Zhan Kenshi Yonezu Made To 1.48BN STRAY SHEEP Changes 1.22M 07 07 07

DaBaby BTS (feat. Roddy Ricch) Justin Bieber MAP OF THE SOUL : 7 ROCKSTAR 1.45BN Changes ~ THE JOURNEY ~ 1.17M 08 08 08

Billie Eilish Taylor Swift ARASHI bad guy 1.36BN folklore This is Arashi 1.01M 09 09 09

BTS Dua Lipa King Gnu Dynamite 1.28BN CEREMONY 0.99M 10 10 10

(SOURCE: IFPI) (SOURCE: IFPI) (SOURCE: IFPI) The Weeknd photo by 10 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 11

GLOBAL 25 RECORDED MUSIC INDUSTRY REVENUES 2001-2020 (US$ BILLIONS)

A RESILIENT INDUSTRY 25 0.6 0.4 0.6 0.7 CONTINUES TO GROW 0.5 0.4 20 0.7 0.8 0.9 2.3 0.4 0.9 0.5 0.0 1.0 0.5 1.0 2.5 2.3 20 0.8 0.9 0.1 1.2 0.4 0.9 1.2 0.4 2.01.0 2.60.5 0.0 1.0 2.5 0.1 0.1 1.2 0.4 1.5 1.2 2.0 1.2 2.30.4 15 2.7 1.3 0.3 0.3 0.3 2.6 0.3 0.4 1.7 0.1 0.2 3.41.2 0.3 2.20.4 1.5 1.4 1.4 1.5 2.3 15 2.7 1.3 0.3 0.3 0.3 1.7 1.9 0.3 0.4 2.6 1.7 0.2 3.4 3.7 1.80.3 2.2 0.3 1.4 1.4 23.0 1.5 1.7 1.9 3.2 3.9 4.2 1.8 2.6 13.4 21.3 0.43.7 4.4 4.3 3.7 10 19.7 0.3 4.0 3.2 11.2 23.0 19.1 3.9 17.9 0.4 4.2 9.2 13.4 21.3 0.4 0.6 4.4 4.3 3.7 6.5 10 19.7 16.2 1.0 4.0 11.2 19.1 1.4 4.6 17.9 0.4 9.2 14.0 0.6 1.9 2.8 6.5 16.2 1.0 11.9 1.4 4.6 5 14.0 10.3 1.9 2.8 8.9 11.9 8.2 7.6 5 10.3 6.7 8.9 6.0 5.7 5.5 5.2 8.2 7.6 4.7 4.4 4.2 6.7 6.0 5.7 5.5 5.2 4.7 0 4.4 4.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20192018 2020 0   200123.6 200222.1 200320.5 20.42004 200519.9 200619.3 200718.1 200816.8 200915.7 201014.9 201114.7 201214.8 2013 14.5 2014 14.0 2015 14.5 2016 15.8 2017 17.0 18.7 20192018 20.2 21.62020      23.6 22.1 20.5 20.4 19.9 19.3 18.1 16.8 15.7 14.9 14.7 14.8 14.5 14.0 14.5 15.8 17.0 18.7 20.2 21.6    T P T S O P R S

T P T S O P R S n 2020, the global recorded music market grew by 7.4%. This marked the sixth consecutive year of increasing I revenues thanks to a continued in paid subscription streaming revenues GLOBAL RECORDED MUSIC REVENUES BY SEGMENT TOP 10 MUSIC MARKETS 2020 which offset a decline in physical and 2020 performance rights revenues. +7.4% GLOBAL RECORDED       01 There was growth in eight of the top MUSIC MARKET GROWTH USA 10 markets globally, largely driven by   2.0% 16.2%     streaming. Revenues from subscription  2.0% 16.2% 02 JAPAN streaming, in particular, increased across 10.6%   the board.     03 UK 10.6%   Record companies’ ongoing hard work   46.0% and investment laid the foundations for 04 GERMANY a now predominantly digital industry and 46.0% helped to ensure its resilience against the 05 FRANCE extraordinary circumstances of 2020. +18.5%   GROWTH IN PAID SUBSCRIPTION 19.5% Record companies have continued to   06 STREAMING REVENUES SOUTH KOREA invest in artists, as well as in their own 19.5% infrastructure and networks around 07 CHINA the world, to drive the development of the industry. Alongside this, they have engaged in diverse methods of 08 CANADA bringing music to fans across a range of digital services, ensuring that there are    09 AUSTRALIA     more opportunities than ever before to   5.8% 62.1% experience music. 443m     USERS OF PAID 10 NETHERLANDS SUBSCRIPTION 5.8% 62.1% ACCOUNTS

Polo G photo by Phil Knott Griff photo by Riccardo Castano *INCLUDES AD-SUPPORTED STREAMS AND VIDEO STREAM REVENUES. 12 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 13

STREAMING a strong year for streaming and revenues grew by 19.9% in 2020 to US$13.4 billion. Paid subscription streaming was the key driver of this, +19.9% growing 18.5%. Streaming was the dominant format and accounted for 62.1% of global recorded music revenues. It represented more than half of revenues in 48 markets worldwide, an increase of 12 markets from 2019.

DOWNLOADS & OTHER DIGITAL Music consumption continued from an ownership model to an access model in 2020 and revenues from downloads and other digital fell -15.7% 15.7%. Revenues from permanent downloads declined 17.3% to represent less than 6% of total revenues and just over US$1.2 bn.

PHYSICAL Physical revenues fell by 4.7% in 2020 to a total of US$4.2 bn. a slightly slower rate of decline than the previous year (5.3% prior year). -4.7% Alongside a reduction in revenues from CDs (down by 11.9%), vinyl had a very strong year and revenues grew 23.5% compared with 6.1% in 2019.

In 2020, recorded music revenues totalled US$21.6 bn, an increase of 7.4% on 2019 and the sixth consecutive PERFORMANCE RIGHTS year of growth. Growth Revenues from performance rights – use of recorded music by was driven by streaming broadcasters and public venues – declined by 10.1% in 2020 as the -10.1% COVID-19 pandemic impacted public performance revenues, interrupting revenues – particularly paid more than a decade of continuous growth in this sector. subscription streaming – which more than compensated for declines in revenues across other formats.

SYNCHRONISATION Revenues from synchronisation – the use of music in advertising, film, games and TV – declined by 9.4% in 2020 due to production delays -9.4% resulting from pandemic restrictions after growth in 2019 of 4.4%. Sync’s share of total global revenues (2.0%) was slightly lower than the 2.4% recorded in 2019.

PYRA photo courtesy of Warner Music Japan 14 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 15

+8.4% +3.3% +15.9% AFRICA & MIDDLE EAST AUSTRALASIA LATIN AMERICA 2020 Recorded music revenues in the Africa & Middle East region Recorded music revenues in Australasia grew 3.3% in 2020 and Latin America was once again the fastest-growing region increased by 8.4% in 2020. This was driven primarily by region held a 2.3% share of the global market. globally. Revenues increased by 15.9% in 2020, which elevated Middle East & North Africa (MENA) region, where revenues rose the region’s share of the global recorded music market to 3.6%, by 37.8%. Australia maintained its position as the ninth-largest recorded up from 3.3% in 2019. Latin America remained dominated by music market globally, with revenue growth of 4.0%. This was streaming revenues, which grew by 30.2% in 2020 and accounted Streaming dominated, with revenues up 36.4%. South Africa and driven by a rise in streaming revenues of 12.8%. Subscription for 84.1% of the region’s total revenues. MENA combined accounted for 86.7% of the region’s revenues. streaming aided this: revenues increased by 14.3% in 2020. Brazil was again Latin America’s largest recorded music market. FIGURES New Zealand remained broadly flat on the prior year, with a Revenues in the country increased 24.5% in 2020. Growth was small decline in revenue of 0.1%, that equated to a reduction driven by an increase in streaming revenues of 37.1% and a of less than US$1m. Streaming revenues were up by 3.9% and strong rise in subscription streaming (28.3%). BY REGION subscription streaming revenues rose by 4.0%.

THERE WAS WIDESPREAD GROWTH IN 2020, WITH LATIN AMERICA MAINTAINING ITS +9.5% +3.5% +7.4% POSITION AS THE FASTEST- ASIA EUROPE US & CANADA Asia posted growth of 9.5% in 2020, a strong increase on the Revenues in Europe, largest recorded music region The US & Canada region grew 7.4% in 2020, a slower rate of GROWING REGION. year prior (3.9%). The year also marked the first time Asia’s in the world, grew by 3.5% in 2020. Strong streaming growth of growth than the prior year (11.6%). digital revenues surpassed a 50% share of the region’s total 20.7% offset declines in all other revenue formats. The top three revenues. markets in Europe contributed over half (59.5%) of revenue in The US market grew by 7.3% in 2020. Streaming revenues were the region. up by 12.9%, driven by an increase in subscription revenues of High regional growth came despite declining income from 13.4%. The US again provided a greater contribution to global Japan, Asia’s biggest market, which experienced a year-on-year The UK had a sixth year of consecutive growth and maintained revenue growth than any other country. fall in revenues of 2.1% in 2020. Excluding Japan, Asia would its position as the third biggest market by revenue worldwide. have been the fastest-growing region, with exceptional growth A 2.2% increase in revenue was driven by growth of 15.4% Canadian recorded music revenues grew by 8.1% in 2020. of 29.9%. in streaming revenues. Revenues for all other consumption Streaming was the key to growth and revenues rose by 17.8% formats declined. with subscription streaming income up by 18.2%. A record-breaking year for K-Pop drove South Korea to 44.8% growth and the position as the fastest-growing major market There was growth of 5.1% in Germany, where streaming in 2020. revenues increased by 24.4%. It was the first year that streaming contributed more than half of total recorded music revenues in the country.

In Italy, the region’s fifth largest market and one of the countries most affected by the COVID-19 pandemic, there was double-digit growth in streaming (29.5%), as well as in both paid subscription (29.8%) and ad-supported (31.6%) formats. 16 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 17

“THE MOST EXCITING DEVELOPMENT THIS YEAR HAS BEEN HOW AFRICAN It’s a core mission to get MUSIC HAS BEEN EMBRACED BY FANS African music consumed WORLDWIDE” From his global perspective, Simon outside our continent. RECORD COMPANIES, Robson, President, International, It’s about being able to Recorded Music, Warner Music Group, picks out the growth in the African market develop the music, develop and the achievements of African artists as a highlight from 2020. the artists and utilise the

He says: “K-Pop continues to make great visuals that come with it, DRIVING GLOBAL strides, of course, but I would argue the that keeps it authentic most exciting development this year has been how African music and African to the region, but can artists have been embraced by fans worldwide.” also translate into music

“In the case of Warner, we have markets around the world. KG with , which has been a SIPHO DLAMINI OPPORTUNITIES CEO, Universal Music, South huge global hit, and Aya Nakamura, the Africa and Sub-Saharan Africa French singer whose music draws on her Malian heritage, signed to Warner Music France, has also been incredibly successful.”

Speaking more generally, he continues: FOR MUSIC “Music is intrinsically about culture, so it’s key that all our affiliates worldwide Even with international travel have their fingers on the pulse of the severely restricted and many local scenes, but we must back that up countries closing their borders, with a world class global infrastructure. I want to double down on local scenes the music industry continues to and domestic artists, and bring expertise, prove that it is more globally professionalism and the ability to open connected than at any stage in up global opportunities for those artists. That is where we can make a massive its evolution. difference.”

In the most challenging of circumstances, record Sipho Dlamini, CEO, Universal Music, companies continue to expand their geographical South Africa and Sub-Saharan Africa, footprint and cultural reach. Many have opened offices is just as positive about the region’s in additional territories, providing employment, and, performance and future, and believes in the process, are discovering and developing new it is vital that record companies have artists with the potential to build global careers they a widespread physical presence and a might otherwise never have had. deep understanding of local cultural and commercial nuances.

He says: “We now have a network, a regional presence, that allows us to represent artists from different countries on the continent. Music is intrinsically about culture, so it’s key that all our affiliates worldwide have their fingers on the pulse of the local scenes, but we must back that up with a world class global infrastructure. +8.4% AFRICA & MIDDLE EAST SIMON ROBSON REGIONAL GROWTH Alpha P photo by President, International, Recorded Music, Tomm and Manlikesmmith Warner Music Group Thelma Plum photo by Sarah Adamson 18 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 19

“It’s a core mission to get African music “WE ARE INVESTING HEAVILY IN firmly believe in Brazil’s rich culture, talent and music as a huge source from which to consumed outside our continent. It’s NEW LOCAL TALENT WITH A GLOBAL about being able to develop the music, break global hits and artists. develop the artists and utilise the visuals MINDSET” The global growth of music from Latin “Our focus in the last couple of years has that come with it, that keeps it authentic centred around building a strong A&R to the region, but can also translate into America, meanwhile, continues apace. The region was perhaps the first of the platform and collaborative network of music markets around the world. local artists, with Latin and international +15.9% non-traditional industry powerbases producers, as well as crafting unique LATIN AMERICA “There is no reason we can’t start to emerge as a commercial force and REGIONAL GROWTH looking at global superstars from Africa. cultural influencer around the world, and marketing strategies for our releases.” Ultimately my goal is to reach a point it is now established as a fixture in the Afo Verde, Chairman & CEO, Latin where we have not one or two, but a mainstream across continents. America, Spain and Portugal, , significant number of African artists who Ángel Kaminsky, Vice President of Latin states very clearly: “Access changed When we’re signing and are streaming at the level of Drake or everything.” He expands: “Through Taylor Swift.” Artists Marketing for Universal Music Latin America, says: “The volume of streaming, fans can listen to whatever developing artists, we’re not Daniel Lieberberg, President, Continental Latin artists breaking into the upper they want, wherever they are. When we just thinking about how it can Europe and Africa, Sony Music tiers of the global consumption charts is release a track and then analyse where Entertainment, shares a similar vision: continuously increasing, a clear sign of it’s being played, it can just as likely be work in the UK, we’re thinking “We are seeing dynamic growth in many the cultural relevance of the music. in the UK, Germany or Switzerland as markets, especially in West Africa, and anywhere else. about a whole range of markets, “We continue investing in new local talent we are investing in all regions as part of “But that doesn’t just happen, of how we can deliver the right a long-term plan to expand our services with a global mindset. The worldwide success of Balvin, and Sebastián course. When I see that data, I know it’s for artists and our creative force. African because those tracks and those artists content, the right visuals, the artists are continuing to set global trends Yatra, along with the new wave of chart- toppers like Aitana in Spain, Jhay Cortez are benefiting from the work done by right stories and the right and are becoming more popular day amazing teams in those regions.” after day.” in Puerto Rico, Danna Paola in collaborations to make sure and Luísa Sonza in Brazil, is testament His goal now is to continue to help build Record labels’ excitement about Africa’s to the impressive achievements of Latin global superstars, whilst also mining our artists are heard as far global potential is echoed by IFPI, which American music.” deeper into the seam of . cemented its presence on the continent in and wide as possible. June 2020 after opening its Sub-Saharan Kaminsky is especially excited by the “For me, the real is for everyone progress and potential in Brazil: “We REBECCA ALLEN Africa regional office in Nairobi, Kenya. around the world to more President, EMI Records Angela Ndambuki, IFPI’s Director for the Lous and Lee Wei Swee photo by region, sets out the industry’s focus:

“We believe there are limitless including legal and policy frameworks themselves known and make money from opportunities for African artists and and content protection.” live performances. Then you go to Ghana their music as they continue to grow in or Kenya and they’ve developed different popularity with audiences around the “YOU STUDY AND LEARN FROM EACH ecosystems to that. Each country has its world. MARKET” own unique dynamics.” “However, for Africa’s many and varied As record labels continue their work and Tracy Fraser, MD, Warner Music South music markets to develop and thrive, investment in the region, Dlamini stresses Africa, talks of a growing commitment it’s essential that the right business the advantages of being sensitive to to A&R in the region. “Over the last environment is in place to support local ecosystems and attitudes. few years, we have been very focused them. We are working on behalf of the on developing our roster, and that will industry, together with governments and “You take a market like Nigeria, where there was an absence of record labels continue. We have an A&R department music licensing companies, to ensure that is now looking for and actively the foundations for this are in place – for so long that they developed their own model and their own way of doing signing and nurturing new local artists. business. ’t just come into that “This is definitely not just ‘a market’, it’s That’s a key part of the value market and , ‘, this is what somewhere we’re investing in heavily proposition we bring, a global we do in the UK and the US, so this is what from an A&R point of view, not only in will work in Nigeria.’ You look at what South Africa, but wherever opportunity network, which includes works there. You study and learn from arises, and great music is being made each market – and from the people on across the continent. international creative talent, the ground. “And from that starting point we work which can be turned on “South Africa, for instance, is probably with other teams across the Warner immediately. the most advanced market in terms of global network and make sure we can infrastructure, with functioning collection give our artists the best chance in every SHRIDHAR SUBRAMANIAM societies and a body. But territory.” President, Strategy and Market in Nigeria, for a long time, artists were Baroes da Pisadinha Development, Asia and Middle photo by Fabio Gallo East, Sony Music Entertainment recording an album purely as a way to get 20 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 21

WE’VE INVESTED HEAVILY IN EXPANDING OUR LOCAL ROSTERS, BUT ALSO PUT A STRATEGIC FOCUS ON ENCOURAGING COLLABORATIONS BETWEEN ARTISTS ACROSS THE

We’re very focused on trying REGION AND BEYOND. IÑIGO ZABALA, PRESIDENT, to take some of our talents WARNER MUSIC LATIN AMERICA from India or China or Africa AND IBERIA to the rest of the world. And this is important – not just to longer journey to digitalization – and diaspora populations but into that the country has hung onto a large the mainstream. physical market share. “Now, the fact that artists can’t tour and ADAM GRANITE Vava photo courtesy of Warner Music China EVP, Market Development, no one can go out, has forced people to Universal Music Group take the last on that digital journey, both in terms of how fans consume music but also how artists have embraced other Latin music, to look a little further. It’s Development, Asia and Middle East. He He sees record companies playing a key digital and virtual ways to engage with like rock and pop from the UK, we knew sees the region as absolutely central role in providing a gateway to global their fans, and that’s something we’ve and the Stones, and then we to the continued growth of the global success for artists from across the been well positioned to help them with.” looked further and there was so much industry – and also believes that, as its regions. “These markets have become to discover. That’s where the world is size and significance expands, it can no very large very quickly, so much so that He goes on to suggest that the rise of with Latin music, and that’s a beautiful longer be viewed or treated as a single the accompanying infrastructure around German language music has, in some opportunity, to be able to really dive into region. them hasn’t developed at the same pace. genres, become dominant: “In urban

a culture you’re only starting to discover.” BTS photo by Big Hit Entertainment music, German rap has become the style He says: “Five to eight years into the “That’s a key part of the value proposition and the lifestyle. German rappers are Iñigo Zabala, President, Warner Music future, I the economic weight we bring, a global network, which currently the most successful artists in Latin America and Iberia concludes: of this part of the world, and what it includes international creative talent, the country.” “Latin America continues to be the brings, will be obvious – especially when which can be turned on immediately. And [Dutch-Moroccan DJ] R3HAB to re-mix “OUR TEAM IS FUELLED BY A&R” fastest-growing music market in the you consider the industry probably that means the number one challenge Lathi, one of their hits. It recently hit 100 Sony Music’s commitment to supporting Daniel Lieberberg, President, Continental world. It’s important to remember that hasn’t even engaged with a third of the and opportunity locally is to be an artist- million YouTube views, is at nearly 50 hundreds of artists in Germany and Europe and Africa, Sony Music growth is fuelled by artists from a huge population there. friendly, creative-focused beacon for million streams and charted in Europe was symbolised, in part, last Entertainment, also recognises the range of genres, from Mexican country Asian talent.” more than 10 countries. year through the opening of a new 8,000 importance of local repertoire: “Local to Argentine trap. We’ve invested heavily “So, we should no longer look at Asia as square metre German and European repertoire is absolutely essential for us one giant block, it needs to be broken Cindy Gu, who heads electronic dance “Both our Southeast Asia teams and the in expanding our local rosters, but also .A. team were incredibly excited for headquarters in . The new site, which and our dedicated teams . put a strategic focus on encouraging up into hubs: Greater China, Korea, label , Asia, is helping to take helps strengthen Berlin’s importance as Last year saw record breaking releases Southeast Asia, India and the Middle local acts to new levels, both through the project and worked really closely collaborations between artists across the together – both teams treated it as their a music hub in Europe, includes state- from local artists in a number of our region and beyond. As the world reopens, East. Each is an economic powerhouse local A&R teams and by connecting the of-the-art music rooms to record and European markets, including 207 with vast populations, but they’re with Universal Music’s global reach own signing in terms of the investment, artists from the region will be able to support and planning they put into it. play new tracks. Due to the pandemic, in Germany, Viktor Leksell in Sweden and benefit from even more opportunities also very different both culturally and resources. of course, the facility has yet to be used in Italy to mention a few. and economically, and in terms of the and the future for our industry looks She says: “We signed an act from “We want to prove ourselves so that to its full potential, but Patrick Mushatsi- bright.” evolution of the market and the internal when an electronic artist is ready to take Kareba, CEO, Sony Music Entertainment, “Despite some language barriers in market dynamics. Indonesia, Weird Genius, about six Europe, we have managed to build a lot of months ago and began providing them their career onto the next level, to look Germany, Switzerland and Austria, “WE SHOULD NO LONGER LOOK AT ASIA beyond their home territory, we’re their manages to find an unexpected positive successful cross-country collaborations “Once you do that, the next step is with A&R support and access to the in both A&R and promotion, the most GIANT BLOCK” to empower these hubs to become whole Universal network. For example, .” that lockdown has had in the territory. He says: “It’s well established that the recent example being the collaboration Shridhar Subramaniam is Sony Music’s significantly powerful entities in their they have re-mixed tracks from some between Lous and the Yakuza from President, Strategy and Market own right.” of our global artists; we arranged for German market has overall been on a 22 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 23

Brussels, whose native tongue is French, That growth, explains Dmitrieva, is We had the right relationships in place as opposed to saying from the outset, ‘I’m with some of the biggest artists in Italy.” to enable our work to continue. We of being fuelled by strong and diverse competition. “Apple has been for going to focus on exporting this repertoire Warner also opened a new European course had to adjust to the situation, but first and everyone’s going to able to keep pushing forward.” a while, but now we also have Spotify, office in 2020, this time in Turkey, via which had a very successful launch here enjoy it simultaneously in the same way’. the extension of an existing partnership It doesn’t work like that; we’re not making “WE ARE CONSTANTLY CHALLENGING in July [2020] and they are really focusing with Doğan Music. Alfonso Perez-Soto, on Russia. widgets. President, Emerging Markets, Warner OURSELVES” Music, explains: “Turkey is an important Arina Dmitrieva has been with Sony “We also have very strong local players, “What we can do is find great creative territory with a significant demographic. Music Russia for over a decade and was for example VK, which is a social media talent in a smaller region, maybe in a It has a population of 90 million people appointed Managing Director in 2013. platform that’s bigger than part of the world where perhaps limited and a major diaspora in Western Europe. adamant there has never been a here. It used to provide unlicensed music, resources and a lack of infrastructure It’s a very vibrant market that is showing better time or brighter future for Russia’s but, having worked with labels, it is now make it difficult for them to develop their strong growth. music market. a fully legal streaming service. craft, their repertoire and their audience as they would like. That’s where we come “It’s also, of course, the bridge between “We jumped straight past downloads “The fact that we have so many different in – with resources and a creative skillset Europe and the Middle East, so there’s a into a streaming market, with 15 million services, with so many different features, to help. really interesting cultural mix, and from paid users, which is, on hand, an targeting very different consumers, that you get a wave of artists who we’re amazing number, but I believe we still means and connect our artists “As a result, we’re very focused on trying Kizaru photo by Ibar Veiga really keen to support and work with.” have huge potential for growth.” with wider audiences.” to take some of our talents from India or China or Africa to the rest of the world. The division is headed up by Gülce Another seismic prompted by And this is important – not just to diaspora Özyeşilpınar, who says: “Our team is streaming but enabled by record signing and developing artists, we’re not “I think, wherever we go, we have to start populations but into the mainstream. We fuelled by A&R, marketing, creativity and companies in Russia, has been a huge just thinking about how it can work in the with creating great music that appeals to know the talent is there to do that, and analytics. We are building a great base increase in the opportunities for local UK, we’re thinking about a whole range a local audience and grow it from there, that’s a big area of focus for us.” here for our international artists, while at artists. of markets, how we can deliver the right the same time working on and investing content, the right visuals, the right stories in great local projects. “ you look at the charts of various and the right collaborations to make sure streaming services, they’re heavily our artists are heard as far and wide as “Turkey is a very local-artist dominated by local artists; in some charts possible.” dominated market, something I’m very it’s up to 90% of the chart. The Russian proud of. We have very diverse domestic audience wants to listen to Russian Supporting and enabling artists to talent and a wide range of fluid creators. music, so we have to be active when it thrive outside of their local market is a Hip-hop is huge, but pop is very strong comes to finding young talent, helping key focus for , as CEO Brad and unique, and catalogue has a huge them develop and connecting them with Navin explains: “Our relationship with our place here. The opportunities in Turkey that audience.” independent label partners has always are countless, for us and for our artist been based on doing business together. partners.” Rebecca Allen is President of the UK’s Investing, empowering and building tools biggest label, EMI Records, but her that allow artists and labels to succeed One of Warner’s first signings in vision and ambition artists is truly in an evolving market is core to our Turkey was pop artist Aleyna Tilki, global. Despite having a roster of UK business. who Özyeşilpınar believes has global superstar artists, she is as plugged into potential. “She is the biggest young Universal Music’s international network, “We are constantly challenging ourselves pop star in Turkey and we and as mindful and respectful of all and listening to our artists and labels. released her first English language single, international markets, as any label leader What do they need to succeed? How can Retrograde, in February. from . we help take them further? Through our data-focused capabilities, we see what’s “There is a great connection between She says: “One in 10 streamed happening globally, and apply that to global marketing and product teams for globally last year was by a UK artist. what we do, so we create a continuous this project, there is no part of Warner That shows you that the music industry strategy for our partners to thrive.” we cannot reach and work with, and from here is investing in artists more than which our artists, starting with Aleyna, ever before, but it also shows that as Adam Granite, Executive Vice President, will benefit.” a UK company we have what I like to Market Development, Universal Music call a bigger playground of audiences Group, reflects on the continued global Perez-Soto reflects on the fact that and communities to speak to and share developments during uncertain times: whilst the COVID-19 pandemic may have music with. “I’m very proud of the fact that in 2020, affected some of their plans in the country, despite the pandemic, we were able they had laid the groundwork before the “India, for example, has become a great to launch multiple new operations in disruption to enable the expansion to partner for us, as have Nigeria and China. countries around the world, and we’ll continue: “I think, ultimately, we haven’t We speak to colleagues in those markets continue to do that in 2021. changed our strategy through COVID-19. on a regular basis now. And when we’re Lil Zey photo by Eylül Ezik photo by Eylül Lil Zey Divine photo by Shubham Lodha 24 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 25

With COVID-19 impacting the global live industry in 2020, record PARTNERING companies have played a larger role in helping artists continue to sustain or grow their income, maintain a connection WITH ARTISTS, with fans, continue career paths and, in many cases, simply provide a reassuring, well-resourced and DELIVERING constant presence during challenging Aimyon photo courtesy of Warner Music Japan times.

“I think the pandemic made us focus industry have experienced some very release of plenty of music that would n many cases, artists suddenly forced on the singular purpose of a record challenging times over the past 20 years. not have been possible without those into lockdown and no longer able company, which is to use our experience It’s how companies and industries face partnerships with artists. FOR FANS to tour, to make and deliver and our extensive expertise to maintain – and even embrace – those disruptions I new music to their fans, sometimes to and enhance the relationship between that determine the next several years for He also highlights how the digital and reflect – and sometimes to distract from the artists and the fans.” those respective businesses. data-driven nature of the modern music – their shared experiences. industry, coupled with the fact that so , Chairwoman and CEO, many people were at home and online, “MUSIC BRINGS PEOPLE TOGETHER AND , Sony Music Entertainment, That’s one of the brilliant meant record companies were able to PROVIDES COMFORT AND HAPPINESS says: “We are always focused on our effectively connect artist and audience. artists, and over the past year, we’ve things about our artists and LIKE NOTHING ELSE” He says: “We have so much more been fortunate in being able to continue about music, they bring people Jess Keeley-Carter, Senior Vice President, releasing new music, help artists meet information and business intelligence Global Marketing, Recorded Music, the challenge of maintaining their fan together and provide some about music’s impact, in real time, at the Warner Music Group, says: “More bases and increasing their visibility. of a global workforce – and we than ever, people were really craving comfort and happiness like can put that at the fingertips of our artists community connection and togetherness “Hits make career artists and career and our teams like never before. Frankly, – and that’s one of the brilliant things artists make hits. So, for a label, it’s nothing else. that investment started years ago, but it about our artists and about music, they always been about supporting the JESS KEELEY-CARTER paid off in a new and major way over the bring people together and provide some artist’s vision and allowing them to Senior Vice President, Global last year.” Marketing, Recorded Music, comfort and happiness like nothing else. create by arming them with the insights Warner Music Group and resources to expand their visions “THE RELATIONSHIP IS ACTUALLY NO “So, it’s our job to tailor what we are and grow their audience. There are so doing with our artists to suit their needs, “I’m very proud that so many of our LONGER ARTIST: FAN – IT’S CREATOR: many new platforms emerging and data artists were very active, even while stuck and then maximise what they do and get sets being generated in the digital age, CO-CREATOR” it to as many people as possible – giving at home, and that help them to It also paid off when it comes to and it is our job to filter the noise, help produce some incredible creative output, people what they need at this time.” artists prioritize and empower them with understanding and utilising new digital delivering songs, and visuals trends. Kooker continues: “I’ve heard Konrad von Löhneysen, Managing delivering their vision so they can fulfill that were not expected – but also, more their . people refer to ‘the creator generation’, Director at Embassy of Music, reflects importantly, that reinforced the power of and I think that’s true. What we’ve seen a similar experience: “More than ever “In short, every artist has an individual music to their fans, the power to inspire is how important music is to that creator record companies were the main point strength a special superpower and it is and uplift, which I know was especially community and, therefore, on short-form of contact, the main focus point and the our job as their record label to amplify welcomed during such difficult times.” platforms. go-to entity for artists. We definitely that vision.” released more music than we would Dennis Kooker, President, Global “That’s incredibly exciting because have done under normal circumstances; Adam Granite, Executive Vice President, Digital Business & US Sales, Sony Music they’re expanding the market for us, we released music that artists didn’t even Market Development, Universal Music Entertainment, acknowledges the work expanding the reach of our artists, giving know they were going to make at the Group, says: “There are always disruptive record companies did in terms of keeping them new outlets and new opportunities. a creative outlet open for their artists, Angèle photo by Charlotte Abramow start of the year. periods in business – and we as an And, importantly, for the most part, it’s and echoes the fact that 2020 saw the now being done in a legitimate way.” 26 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 27

“But every artist is different – and every At Warner Music Iberia, President DaBaby photo by Adi Muhtarevic artist’s fans are different. First and Guillermo Gonzalez believes it is this foremost, it’s gotta be authentic to the passion that forms the of ARTISTS HAVE TO BE AT THE artist and the artist’s vision. And then – successful relationships with his artists even among the incredible competition – an example being Pablo Alborán, an CENTRE OF EVERYTHING WE for attention – it’s gotta grab people enormously successful Spanish artist and not just pull them in, but have them who, in 2020, renewed his agreements looking to engage with it repeatedly and with following a lengthy DO. BECAUSE WHEN OUR in varying ways. That demands a high relationship. Gonzalez says: “He knows level of creativity and ingenuity. And to that, in us, he has a dedicated team that AMBITION LINES UP WITH succeed globally requires a team. he trusts to be open and transparent. It’s more than a partnership, we are a OUR ARTISTS’, WE WIN FOR “Thousands of people that work at team. He wants us to work hard – and Universal Music Group every we want to work hard for him – and in day and come to work for one reason: turn he brings us into his world and on his THEM AND WITH THEM. they love music and they love artists. journey. It’s a thing to be so That passion and those skillsets and that closely involved with an artist like that.” CEO, RECORDED MUSIC, experience gets poured into an artist and WARNER MUSIC GROUP is their fuel.”

Dipesh Parmar, President, Ministry of In short, every artist has an “What I think is truly special about Sound, echoes this commitment: “The individual strength a special immersive versus other live performance- relationship between labels and artists type events is that it’s an unlimited has become far more collaborative than superpower and it is our creative format. You can truly hand the it has ever been. I spend most of my day job as their record label to keys over to the artist and , ‘Tell talking to our artists about issues ranging manager Arnold Taylor, from South Coast from making records, finding songs, Music Group, looked to us for that added Kang Daniel photo courtesy of Konnect Entertainment us what you want to do’. There are amplify that vision. much no limitations, which means our collaborations, exciting opportunities ‘rocket fuel’ to help them make him the through new marketing ideas and how SYLVIA RHONE global superstar now. artists will constantly create new and Chairwoman and CEO, Epic Records Shridhar Subramaniam, President, we can evolve the artists’ vision through “IMMERSIVE ENTERTAINMENT IS HERE compelling content in this space, it’s a “That’s what we brought, that additional Strategy and Market Development, Asia really exciting prospect.” new digital media. We’ve also had a That passion and commitment to and Middle East, Sony Music, echoes TO ” vital role to play in keeping our artists booster. Finding the right features, Another artist who made an appearance partnerships with artists is echoed by Joe bringing in additional producers to Kooker’s point, and extends it into the “MUSIC AND ARTISTRY IS ABOUT creativity flowing and checking in on Kentish, Head of A&R at gaming space: “The relationship between in Roblox was Atlantic’s Ava Max. them and their mental health. It’s my job expand the sound, taking him overseas Simon Robson, President, International, PASSION AND ENGAGEMENT: GET THAT UK: “It’s not difficult when someone really early on, getting him on TV – and an artist and a fan is actually no longer to ensure we’re providing them with the whose music you really like calls you at artist: fan – it’s creator: co-creator. Recorded Music, Warner Music Group, RIGHT AND THE NUMBERS WILL FOLLOW” means to continue releasing music and, knowing how that works when , says: “Ava held a listening party for her nine o’clock at night to play you a new knowing what we can ask for and push for Dave Rocco, Executive Vice President, therefore, providing them with a source . That’s not a hard thing for me to do. “There are similar things happening in album on the platform. She had more Creative, Universal Music Group, says of income.” to make it the best performance possible. games, whether it’s the Travis Scott or Lil than a million fans attend and sold virtual It’s enjoyable, and it’s fun, and it’s part of that it’s all about the music and making the job, and it’s really great.” “That’s what artists’ teams wanted from X (in Fortnite and Roblox merch as part of the event. the connection between artist and fan respectively), these are immersive labels, because they know that’s what “I think the marriage of music and gaming, real and passionate. Reflecting on the emotional commitment it takes to take local and national stars experiences, where I can get a specific executives often make to artists, he adds: avatar and I can participate in many when done right, is a unique experience “Music and artistry is about passion and and help them achieve global success. which opens up so many opportunities. “It is quite emotionally and creatively DaBaby today is huge all over the different ways. Nobody is a passive engagement; get that right and all the involving, so it takes a lot out of you fan anymore; you’re engaged – through It’s definitely an area we’ll continue to other metrics of success – the numbers – world and we are honoured to be his explore.” in that way. It’s not like working until collaborator in helping to get there.” live streaming, through video games, or will follow,” he says. “The question is, are midnight down a coal mine, but you are short-form video.” Kooker returns to the theme: “Immersive you helping the artist tell that story and very, very involved on this journey that Ultimately, as Max Lousada, CEO, make that connection with fans real? Are AO, Chairman and CEO entertainment is here to stay. The they’re taking, and you have to be quite Recorded Music, Warner Music Group, pandemic just accelerated it. Music the fans truly engaged? You know when available and open in a really creative concludes: “Artists have to be at the of Sony Music Entertainment Australia because people want more of it.” and New Zealand, has seen the same can and should have a big role to way.” centre of everything we do. Whether developments in the markets he play in the development of immersive Rocco highlights the synergy needed that’s honouring and amplifying artistry, entertainment. Nicole Wyskoarko, Executive Vice whether that’s understanding what oversees: “It goes without saying that between artist and label to take an President/Co-Head of A&R, Interscope short-form video in the last 12 months artist’s vision and reach opportunities we can plug our artists “We are particularly bullish about the Geffen AM, describes labels’ partnership into, or thinking about strengthening has been a new driving force for audience future of the intersection between a global audience: “We are driving to with artists in terms of recalling a rocket’s development and fan engagement. help our artists change culture through the services and support that we offer music and gaming in particular, to the flight: ignite; fuel; explosive. them. Because when our ambition lines Through creative brilliance, artists have point where I honestly think it could be artistry. We work every day to help them been able to connect in unique and achieve their greatest creative – and She points to Interscope’s work with hip- up with our artists’, we win for them and a new format for us. We have a creative with them.” exciting ways. This means that there strategy around it that is not just about commercial – potential. If an artist wants hop artist DaBaby to illustrate how the has never been a better as huge tent-pole events, but more of an a certain level of global reach, skillsets, energy and commitment of a record label an entertainment company to take ongoing regular content strategy. amplification, resource, creative, can help propel an artist’s journey to new domestic artists outside of their home marketing, finance, labels can provide heights: “, he already had the country, whilst at the same time break that and help a career grow vertically raw talent and a great team around him. Ava Max photo courtesy of Atlantic Recordsof Atlantic photo courtesy Ava Max international artists in local markets.” and horizontally. To take it to the next level DaBaby and his 28 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 29

CASE STUDY CHEN LI NONG IS TAKING CHINA BY STORM. AND THAT’S JUST THE

BEGINNING OF HIS JOURNEY. HE’S ALSO CREATING HIS OWN UNIQUE SOUNDS, SHAPING HIS CAREER AND REACHING FOR GLOBAL SUCCESS – ALL IN PARTNERSHIP WITH HIS RECORD COMPANY, UMG.

niversal Music China first Chen Li Nong as a Garand Wu, Managing Director of Universal Music China, says: potential breakout star when he appeared as a competitor “It’s a partnership. To succeed, labels and artists must share on television’s Idol Producer, and later signed him as a solo a vision. That’s why we are confident of success together: we U artist in November 2019. His first UMG single, Features of and his many abilities, his aspirations align with Happiness, was released on New Year’s Day 2020 and rapidly what we see in him, and we believe in our team’s experience and broke the 10 million streams barrier. ideas from an A&R perspective.”

Building on that success, Unbelonging (his debut UMG album) “From the get-go, we worked closely with him and his was released in June 2020 and garnered seven sales records management on a vision to propel him from China, throughout on the QQ Music platform, including going in just one Asia and to the world. There is J-Pop, there is K-Pop, and there minute – a breath-taking accomplishment. Winning a raft of will be C-Pop. And Chen Li Nong will be among the vanguard.” awards and attention, Chen Li Nong’s social media reach has exploded, with a combined total of nearly 19 million followers Yvonne Yuen, SVP, Marketing, Greater China, Universal Music, across all platforms – with more than 17 million on Weibo alone. adds: “With Chen Li Nong, the key is his creative input. We recognise his unique talents and we are working to nurture that talent. Our A&R team hunts for the best to partner I’m delighted to be a part of Music with him both as an artist, and as a writer himself. This is an investment, from him and from us, to put that time in as a writer family. As an artist in my early 20s, having and an artist, and let the music take care of itself.” Universal Music work with me closely for the One step towards international recognition was the single Masterpiece, released in late 2020 featuring US actress and release of my debut album and the many live singer . Yuen says: “They connected through music. We worked with Hailee’s A&R team to find the right song

CHEN performance opportunities have given me the and she had her input into the English . The whole thing was BEST beginning to my ongoing music and creative a very close partnership between the two artists and with UMG’s journey. I hope to inspire other young people to team. “These collaborations have to be authentic and they have to be their dreams just . organic; those are the qualities on which Chen Li Nong’s career CHEN LI NONG will be built, and how he will become known and respected inside and outside China and around the world – by staying true to who he is.” LI NONG

Chen Li Nong photo courtesy of Universal Music China, photograph by Icura Chiang 30 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 31

CASE STUDY HIT-MAKING ARTIST, PRODUCER, AND TRAVIS SCOTT IS RENOWNED FOR PUSHING THE BOUNDARIES OF CREATIVITY AND TAPPING INTO THE ZEITGEIST.

owever, with the world locked down due to the pandemic, Scott and the developers were from the offset, which led to its the visionary artist wanted to help his fans – if only just huge success. for a small moment – escape the strains born by a global pandemic by giving them a freeing and unforgettable “When Travis and the developers were collaborating, he could H speak their language and respect their artistic process that went experience in the virtual world. into each aspect of his creation. Everyone involved understood So, he and his record label, Epic Records, part of Sony Music that making a connection between Travis’s die-hard fans and Entertainment and the wider Sony family, worked on bringing Fortnite gamers presented a unique opportunity.” his vision to life. The was record setting, drawing 12.3 million concurrent “At Epic we’re guided by the creators who influence and drive players at its peak and a total 28 million unique players from cultural moments and that includes leaders in technology, film, around the globe who joined across five airings of Astronomical. fashion, gaming, art, and content development, like Travis Scott,” Including repeat viewers, fans showed up for the event a total says Sylvia Rhone, Chairwoman and CEO, Epic Records. “We of 46 million times and of the five tracks performed within the have the benefit of plugging into the broader Sony system and concert game only one was new. Overall streams after giving our artists endless opportunities, so they can create for were 372 million globally. any audience they want to reach. “Only a third of Fortnite gamers before the partnership said they “When Travis came to us with a vision of constructing a virtual were Travis Scott fans. However, it was all amplified and scaled concert, unbound by the rules of physics and science, where by the fact we were in the midst of a pandemic and so much he could give fans a truly immersive experience, we knew we of the world was stuck at home. The launch of this activation could help him make it happen. Despite being a global star he became a family experience. I had parents me about the is still reaching new milestones. He is a creative genius and also game because they had never heard of Fortnite before, so a huge gamer, so it was very authentic and natural for him to think this has now opened the door more permanently to new be partnered with to hold his concert on Fortnite.” opportunities in the virtual world.”

The effect outside of Fortnite on Travis Scott’s popularity and When Travis came to us with a vision of entire catalogue was huge. engagement increased 195% worldwide and the Astroworld album went back into the constructing a , unbound by the top ten. Goosebumps from Birds in the Trap Sing McKnight, an album that is four years old, increased 228% and his social buzz SCOTT rules of physics and science, where he could and engagement rose dramatically, too. give fans a truly immersive experience, we knew “We definitely exposed him to new audiences, and these are we could help him make it happen. fans that will now stick with him forever. This was truly global and fueled a massive global following for him, in just three days. SYLVIA RHONE Astronomical illustrates the power of a true partnership CHAIRWOMAN AND CEO, EPIC RECORDS that is an extension of both the game makers and the artist. That TRAVIS TRAVIS unique intersection was really the true success of the activation. On the evening of 23rd 2020, the combined creative But the only reason it worked was because it was authentic for effort of Travis Scott, Epic Records and Fortnite’s developers – him to do. He has clearly emerged as one of the leaders in this titled Astronomical – was revealed to the world. space as he keeps music in the centre of everything he does, “It was an and ethereal experience for virtual effortlessly integrating his brand into any corner of culture he concertgoers”, says Rhone, “and shows just how in tune Travis desires.”

Travis Scott photo by Daniel Sannwald 32 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 33

CASE STUDY IRONICALLY, REFLECTS JOE KENTISH, HEAD OF A&R AT WARNER RECORDS UK, DUA LIPA’S SECOND ALBUM, FUTURE NOSTALGIA, WAS AND MADE AROUND A SINGLE, SIMPLE CONCEPT: THAT IT SHOULD WORK LIVE IN FRONT OF A CROWD GOING ABSOLUTELY WILD.

eleased in late March 2020, circumstances conspired to Everyone, he admits, would have been even more nervous if prevent that live experience from happening, but it proved they had known that Future Nostalgia’s release would coincide to be a record that, whilst still to be played to a field full perfectly with the onset of a global lockdown in response to the R of fans, shifted Dua’s career, global profile, and critical COVID-19 pandemic – and that this was to be no short-term standing through several gears (at of writing, global situation. sales stand at over 3.3 million album equivalent sales).

Kentish, who signed Dua when she was just 18, describes Future [Future Nostalgia is] the absolute apex of Nostalgia as “the absolute apex of what we try to do as a label, what we try to do as a label, which is combine which is combine commercial success with creative excellence”. commercial success with creative excellence. It was, he says, the result of a strong, close and trusting partnership between label, artist and manager. “I’m , JOE KENTISH because Dua always wants to be engaged. We never stopped HEAD OF A&R, WARNER RECORDS UK music and about what the second record would be like. “We still thought we’d be playing Glastonbury! As the reality dawned, the temptation to put it back was massive. The single “The best artists come with all the raw materials in place, so was doing really well, so why take ? you end up listening to what someone like Dua wants to do and then using your experience and relationships to create the “I think the first cue came from Dua. She just said, ‘If it’s meant environment where she can achieve that. You’re facilitating to be it’s meant to be. Let’s put it out and have faith in the record someone else’s ambition, basically, maybe even expanding it, we made.’ I felt the same – we knew we had a great record and believing in them, and doing whatever they need to create what it felt wrong to sit on it.” they want and get where they want to go.” As for the record’s raison d’etre, to be played and enjoyed live, There were nearly three years between albums one and two, and the closest alternative was November’s Studio 2054 livestream Kentish concedes all involved were aware of the clock ticking. show, which pulled in over 5 million views, including over 1.9 “There’s a natural pressure for artists to out there and million unique logins from China and 95,000 from India. there’s a natural pressure on us as a record company to put out Warner Records adapted and, as Kentish says, “that became from big artists. world tour, and we did massive amounts of promotion in every “But there was understanding on that we needed to significant territory based around that event – it was different, stick to our guns, that she had a vision and that we had to wait but it was also sort of the same.” for the songs to do that vision justice.” He adds: “I watched it again the other day and I’d As a result, Kentish explains, a side benefit of the success of a forgotten the whole point of this record, - it is basically a party. record like Future Nostalgia is a ratcheting up of confidence for And I have to admit, I thought, ‘This would have been so good everyone involved, starting with the artist. “The relief is palpable, at Glastonbury’.” because they think, I’ve made difficult decisions, I’ve stuck to my guns, and it’s worked. Same for us. And then next time, when you’re feeling a bit nervous about a project, maybe you’ll back yourself a bit more.”

Dua Lipa photo courtesy of Warner Records UK DUA LIPA DUA 34 IFPI GLOBAL MUSIC REPORT 2020 IFPI GLOBAL MUSIC REPORT 2020 35

To succeed in music uniquely demands collaboration among diverse voices. Having people from diverse backgrounds with different perspectives to shape the narrative and lead the charge is really important and meaningful. Just thinking about my journey, I don’t know that I would have had the opportunities I’ve had in any BEYOND other industry. NICOLE WYSKOARKO EVP/Co-Head of A&R, Interscope Khalid photo by Ro.lexx

“The notion that you can make this we do is create an inclusive environment both our differences as well as our THE MUSIC separation between work and life, what that allows them to bring their greatest commonalities.” is your job and what is society, or what is selves to work. personal, that’s impossible; everything is Hutcherson sees this as a mutual goal 2020 was a year when, sparked by a blended.” “We want to know, as an employee, what of both record companies and artists. is your experience every day? And how He believes that this spirit of shared series of shocking incidents and As UMG continues to evolve, he is looking can it be better? Experiential wellbeing priorities and complementary strengths subsequently driven by global and local at every opportunity to lead with the will be a key differentiator for how we can effect real change in the areas of campaigns, most notably the on the people in the organisation. treat and earn commitment from our social justice and philanthropy. “The founding principle of what we’re staff. Lives Matter movement, social justice looking to do is put people at the centre: “And, by enhancing our people’s issues rose to the top of the world’s putting our employees at the centre, “We no longer live in a world of passive experience, we aim to help transform the compliance where we tell you what to experience of our artists, to make sure agenda at every level – governmental, putting our artists at the centre, putting the fans at the centre. do. That doesn’t work, because in this they feel like Universal is not solely a corporate, and individual. generation people will opt out of that does business with organisation or they’ll create one that is them, but a partner who can help them The founding principle of what consistent with their values.” make a difference in the world.” ecord companies have been we’re looking to do is put people Hutcherson emphasizes the importance He says: “I love the phrase ‘music is playing their part – questioning and of companies being vocal about the universal’, because it means we are in challenging themselves, while also at the centre: putting our values they uphold and what they believe a position to impact the world, and our R participating in and contributing to employees at the centre, putting in as an organisation. “Employees will artists are at the centre of that. To help causes, in the community and globally. make a decision as to whether or not build the brand of our artists, to give them our artists at the centre, they are aligned with you. That’s how a platform to make social change, and “WE NO LONGER LIVE IN A WORLD OF you attract and retain the best people, to give our employees the platform and putting the fans at the centre. PASSIVE COMPLIANCE” by standing for something and by support so that they can make changes Eric Hutcherson is an Executive Vice ERIC HUTCHERSON actually doing something that makes internally and externally, that’s why I’m EVP, Chief People and Inclusion a difference. here.” President at Universal Music Group, Officer, Universal Music Group serving as its Chief People and Inclusion “WE ARE IN A POSITION TO IMPACT Hutcherson both acknowledges and Officer. He reflects on how UMG is “Your employees are the most valuable champions the pivotal role UMG’s artists evolving, responding to recent events, asset you have, and the experiences they THE WORLD” play in shaping the future of the industry engaging with its employees and have, the way that they’re treated, the “My goal is to drive meaningful change and broader society. contributing to communities. way they engage with each other, that all towards making this a more diverse becomes crucial to your success. So, what and inclusive industry that recognizes

Kelly Khumalo photo by Xavier Sear 36 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 37

I think the industry generally “THERE ARE CERTAIN CORE “You don’t go in there with a pre- packaged, ready-made answer, because is looking to support more PRINCIPLES AND CORE ELEMENTS it doesn’t work. You approach it with THAT ARE UNIVERSAL: RESPECT, cultural humility.” women in executive roles, DIGNITY, HONESTY, ACCOUNTABILITY, This approach extends to the certainly compared to when TRANSPARENCY – THESE ARE THE infrastructure being applied to Warner’s I started. This industry has THINGS THAT GUIDE US” work in this area – backed by major top- Warner Music’s Head of Global Equity, down corporate commitment. Stinnett to be built around diversity Diversity & Inclusion, Dr Maurice Stinnett, says: “They had already established of all types because it has to agrees with the importance of sustaining a Global Diversity Council and they momentum and enshrining initiatives. allowed me to take the helm of that, and reflect our market. There are “The challenge is to keep the work going at the same time assemble my team. long after it is politically expedient, The resources are huge, they gave me so many amazing young women and at the forefront of people’s minds. whatever I needed to hire my team and organize everything to run effectively, on coming through now, they just When it’s no longer a hot button, that’s when we continue to do the work that a large scale. need the opportunity – and desperately needs to be done. “We now have over 50 global employee I think we’re committed to “When you’re , when you resource groups focused on specific don’t think there’ll be any commercial areas that will drive diversity, equality providing those opportunities. repercussions, that’s the challenge, that’s and inclusion efforts locally – that’s on the ground and wins on the ground.” TRACY FRASER the long-term commitment to carrying MD, Warner Music South Africa on with the same intensity we’ve seen Stinnett goes on to explain the synergistic

over the last 12 months, and that’s about relationship between social justice action Future photo by Daniel Sanwaald doing it because it’s right and because it’s being taken within record companies and who we want to be.” the wider movement in society: “That’s the beautiful thing about the social justice movement, everybody has a role He also emphasises the global nature of to play. his task and the importance of recognising We now have over 50 global the nuances of local issues. “We’re in 46 “I don’t discount my role at the corporate countries across six continents, and my employee resource groups boardroom, and I don’t discount another job is to help us think through everything focused on specific areas that person’s role marching in the street. We we’re doing, in every territory, through all have our various parts to play, we’re Charmaine photo by Spencer Edwards Charmaine the lens of diversity, equity and inclusion. will drive diversity, equality and rowing in the . If we do that effectively I think that’s how we’ll see “There are certain core principles inclusion efforts locally – that’s the change we’re looking for.” “I’m super excited about the value our One development within UMG was the and core elements that are universal: artists bring because, frankly, they can establishment of the company’s Task boots on the ground and wins on respect, dignity, honesty, accountability, “OUR ARTISTS WANT TO KNOW drive change at a more rapid pace than Force For Meaningful Change. transparency – these are the things that perhaps all of our government institutions the ground. WHAT WE’RE DOING AND HOW THEY Hutcherson says: “What I was proud guide us. But I’m also very big on humility, combined. All our labels are speaking to so when we go into territories, we’re just DR MAURICE STINNETT CAN HELP” them every day and what they’re finding of when I joined UMG, and in fact one Head of Global Equity, Diversity of the reasons I felt so compelled and listening at first – listening and learning. & Inclusion, Warner Music Towalame Austin is Executive Vice is artists stepping forward, saying, ‘Here’s President of Philanthropy & Social Impact what I want to do, how happy to join UMG, was that they take action. They created the Task Force For at Sony Music Group. She joined the do it?’ DABOYWAY photo by John Tods Meaningful Change and went straight company in the of 2020 and a “If we can do it right and amplify the to making policy changes, identifying lot of her early work at the company was voice of our artists to influence change and developing future female and Black as part of its Get Out The Vote campaign in the way people think and act, imagine executives within the company, creating in advance of the 2020 presidential how powerful that could be.” an intern programme working specifically election in the U.S. with historically Black colleges, etc. He is also well aware that the social She says: “We launched an initiative challenges being discussed today are “These things will have a long-term called Your Voice, , Your not one-off instances but repeats of effect and they will change the dynamic Vote. We wanted to make sure as many history’s darkest moments: “Black Lives internally as well as the way we operate people as possible knew their rights and Matter isn’t new, it’s version of and the things we do externally.” had accurate information. It’s part of our the oldest thing – and I’m glad people commitment to advancing social justice are saying it’s not okay anymore. I’m everywhere. cautiously optimistic that people and “The campaign involved partnering with organisations won’t settle back into their a huge number of community-based norms when the noise dies down.” organisations and mobilising more than 80 of our artists to help amplify that message.” 38 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 39

The power of music is central to Sony from, COVID, such as food insecurities Like many leaders across the industry, Warren also recognises Music’s vision of increasing awareness and homelessness. and welcomes a shift in attitudes and emphasis. She says: “As and affecting change across a variety a general rule, diversity, equity and inclusion has to continue to of issues. “Our platform and the voices “We’re also supporting High School music go above and beyond what we say and become what we do, of our employees and artists can have a programs, because there is special PPE who we are. In there has too often been a powerful impact on society and culture. needed to play certain instruments and superficial, performative element, but now is the era of action we’re providing that so that bands and and accountability.” Our platform and the voices orchestras can continue to operate in a safe environment. It’s clear you can have of our employees and artists a significant impact when you get really As a general rule, diversity, equity and inclusion can have a powerful impact on involved with and close to communities.” has to continue to go above and beyond what we say society and culture. “PEOPLE WANT TO SEE REAL RESULTS and become what we do, who we are. TIFFANY R. WARREN TOWALAME AUSTIN AND REAL CHANGE” EVP, Chief Diversity and Inclusion Officer at Sony EVP, Philanthropy & Social Austin’s colleague, Tiffany R. Warren, is Music Group Impact, Sony Music Group Executive Vice President, Chief Diversity and Inclusion Officer at Sony Music “Employees and artists are more Group. She stresses the importance of engaged than ever and want to know Sony Music’s foundation of transparency how they can help us be more visible and and willingness to change its company connect with different communities.” culture which impacts directly on the She also, however, stresses a ‘grassroots’ employee experience. “It’s important that element to the practical philanthropic our talent both internally and externally side of Sony Music’s work. “Early in the see our values reflected in the words, pandemic, Sony Corp set up a $100 million faces and actions of their colleagues and Micro TDH photo courtesy of fund to support those affected by COVID. our leaders; that’s what we’ve been doing, In addition to addressing because that’s how you truly change needs, it also supports and partners culture, even before I arrived. with communities on issues “I’ve seen it: small changes make big related to, or arising changes; moments lead to movements. If something is needed, when given the right framework, the right environment and the right tools, our talent at all levels create and support meaningful change.

“Sony Music Group’s talented community are our leaders of today and tomorrow, and we know it’s important that they’re growing in a culture of diversity, equity and photo by ©FIFOU inclusion. The Company has a track record of engaging with our talent to help change our culture, because that ultimately makes As social justice protests spread around the In this age it’s not enough to give women them more exceptional as a manager and world last summer, we were compelled to take powerful titles, we need to recognise past as a colleague.” action as a company, spearheading the Sony mistakes, our blindspots, our privileges, and Music Group “Your Voice, Your Power, Your work constantly to overcome and make up for I’m super proud of the work Vote” campaign during the U.S presidential them. Music is an unstoppable power for good this company has done election. Now, as away from the 2020 and our business can and should lead the way for in terms of inclusion and election with a focus on the transformative true diversity and inclusion. At Warner, we’ve a diversity. I at the issues facing our nation, we have prioritized mission to implement this diverse and inclusive opportunities given to young making a sustained impact in the community culture in every territory, to demand justice women, in terms of coaching by working with organizations that address and provide safe spaces for artists, industry and mentorship, and it’s access to education, healthcare, food and job workers and music fans.

GÜLCE ÖZYEŞİ LPINAR incredible. opportunities. General Manager, Warner Music, Turkey REBECCA ALLEN SYLVIA RHONE President, EMI Records Chairwoman and CEO, Epic Records

P!NK photo by Sølve Sundsbø 40 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 41

THE ECONOMIC CONTRIBUTION OF MUSIC Music contributes to our lives in so many different, often incalculable, ways. One area we can measure is its economic contribution. According to The Economic Impact of Music in Europe, an in-depth study by Oxford Economics CREATING A FAIR that was commissioned by IFPI, the music sector supports two million jobs and contributes €81.9 billion annually to photo by Haris Nukem the economy across the EU and UK.

ENSURE COPYRIGHT FRAMEWORKS ARE ENVIRONMENT TO ENABLE CLEAR AND PROVIDE FOR LEGAL CERTAINTY €81.9bn Commercial and legal certainty is needed to ensure THE MUSIC SECTOR’S GVA CONTRIBUTION everyone understands how music can be used legally TO THE GDP OF THE EU AND THE UK 2 and to enable them to do so. This means guaranteeing right holders an adequate level of protection through exclusive rights. Where they exist, exceptions to THE MUSIC SECTOR SUPPORTS A TOTAL OF MUSIC TO THRIVE copyright should be limited, clearly defined, and narrowly targeted to deliver a legitimate public policy outcome. Open-ended or ‘flexible’ exceptions are open to abuse and do not provide the necessary certainty. 2 MILLION JOBS IFPI works closely with its record company (1 IN EVERY 119 JOBS DEPENDED ON THE SECTOR) members to campaign for fair and sustainable regulatory frameworks worldwide to support RESPECT FREEDOM OF CONTRACT the growth and development of the whole In a fair and functioning marketplace, parties should be music sector. This includes the recognition free to agree the terms of their licensing . Interference, however well intentioned, will distort the €9.7bn and effective enforcement of the rights of market, disincentivise investment and undermine the GOODS AND SERVICES EXPORTED TO 3 COUNTRIES OUTSIDE THE EU AND THE UK those who invest in and create music. growth of the entire sector. Binding the industry’s hands through static regulation – which can never evolve as fast While the nature of music markets may vary around the world, we work to as technology – limits the ability of record labels, artists, introduce the following principles across markets to enable music to thrive globally: and platforms to find the most effective and innovative solutions to respond to an evolving marketplace. €31bn RECOGNISE THE VALUE OF MUSIC TOTAL TAX CONTRIBUTION OF THE SECTOR Music has both cultural and economic value, and public policies should ensure that all services that distribute music, regardless of how they operate, negotiate TACKLE DIGITAL PIRACY market-rate licences with music creators and right holders (those who create As the licensed digital music market has evolved with While this study focuses 1 and own the music) in a fair, competitive marketplace. technology, so too has . IFPI and specifically on the EU and its member companies work non-stop to protect their UK, it demonstrates the Policymakers around the world increasingly understand the need to ensure artists’ content by taking action to curb the spread of contribution that music that ‘safe harbour’ provisions are not misused by online platforms to claim 4 unlicensed music online, including legal action where can make to any country, exemption from copyright liability and undermine the value of music in the necessary to inhibit the operations of services that seek providing the right policy online marketplace. Member States of the European Union are implementing to illegally profit from music. environment is in place. legislation, known as the ‘Copyright Directive’, to address this issue; the Directive must be transposed faithfully, or it will undo the public policy goal for which it To help our work, governments worldwide should was enacted. In Mexico, the government has introduced ‘notice and staydown’ enact and enforce legislation that requires online conditions to its ‘safe harbour’ rules that ensure that unlicensed content does intermediaries to block access to services that make not reappear after takedown. unlicensed music available, following the example of a growing number of countries from India to Latin Right holders should also be protected when their music is used in public America and the EU. Governments can also require that performances or broadcasts. of 2020, following a long-term campaign online hosting providers adopt and adhere to ‘notice led by IFPI and its members, China established full performance rights for the and stay-down’ measures to keep infringing music off use of recordings in public performances and broadcasts. For the first time, their services. All intermediaries should take steps to revenue for right holders will be generated for the use of recordings in public ensure they have accurate identifying information on performances and broadcasts, enabling further re-investment in the Chinese their customers and make that information available music community. Singapore has also agreed to recognise public performance to right holders and law enforcement agencies who rights and is working to implement them. The industry still needs to ensure full need it for the legitimate purpose of protecting their performance rights protection in Japan and the US. intellectual property rights. Online intermediaries should not profit from facilitating mass copyright infringement. flowerkid photo by Levon Baird Levon by photo flowerkid Shark photo by Max Doyle 42 IFPI GLOBAL MUSIC REPORT 2021 IFPI GLOBAL MUSIC REPORT 2021 43 PHOTO CREDITS

COVER Angèle photo by Charlotte Abramow

Ray Dalton photo by Epic / Sony Music Germany

Dua Lipa photo courtesy of Warner Records UK

LYRA Vanilla photo by Rang Surasak Ittirit

BTS photo by Big Hit Entertainment

Bruno photo by Kai Z Feng

Doja Cat photo by Vijat Mohindra

Julie Bergan photo by Paul Edwards

The Weeknd photo by Nabil Elderkin

PAGE 6 BTS photo by Big Hit Entertainment

PAGE 7 Taylor Swift photo by Beth Garrabrant

Drake photo by Gabrielle Salonga

The Weeknd photo by Nabil Elderkin

Billie Eilish photo by Kenneth Cappello

Eminem photo by Danny Clinch

Post Malone photo by Gabrielle Salonga

Ariana Grande photo by Dave Meyers

Juice WRLD photo by Chris Long

Justin Bieber photo by Mike Rosenthal 44 IFPI GLOBAL MUSIC REPORT 2021

IFPI is of the recording industry worldwide, representing over 8,000 record company members across the globe. We work to promote the value of recorded music, campaign for the rights of record producers and expand the commercial uses of recorded music around the world.