In 2022, audio-streaming services will account for 32% of music consumption, but video and social media platforms such as YouTube, TikTok, and Instagram also play a significant role. You can make this what you like. All of this is based on the International Federation of the Phonographic Industry’s latest music consumption statistics pack, which goes under the name “Engaging with Music”.
These stats pack also shows that music is being listened to more often each week. From 18.4 hours in last year’s survey, the average listening time now stands at 20.1 hours. According to the IFPI, this means that people listen to more music than ever before. They are also accessing music through more channels than ever, with the average person listening to music via six different sources.
The record industry’s global trade group surveyed 44,000 internet users from 22 countries. The new global statistics are based on surveys conducted in Argentina, Brazil, Canada, and France. The report also includes standalone summaries from surveys that were conducted in China and India, Indonesia, Nigeria, and Nigeria.
74% of internet users were streaming music via an audio streaming service, according to global figures. This includes paid-for premium services as well as ad-funded, free-to-access services. The music industry earns more from the latter. 46% of respondents signed up for a paid-for service either directly or through a family plan package.
Paid streaming was most popular with 25-34-year-olds, who signed up for 56%. Closely followed by 16-24-year-olds who had 54%. The engagement with premium services decreases as you age. For example, among 35-44-year-olds, 44% were streaming to pay, while 45-54-year-olds paid 36%, and 55-64-year-olds, 26%.
Things change, but they remain the same
CMA identified five methods artists can get their music “out there”:
- Sign with a major label like Sony, Universal, or Warner. Major labels offer a wide range of services, called “artist and repertoire” (A&R), which include the discovery, signing, development, recording, financing, and support for touring. The deals usually involve an upfront payment and the artist assigning their copyright.
- Sign with a smaller, independent (or indie) label like Beggars Group, or BMG Rights Management. These labels can also include A&R services, but more often use a menu’ approach.
- Use an ‘artist services’ provider such as Believe, PIAS, and Empire. These services offer a simplified version of ‘A&R services’ called ‘artist & label’ (A&L). They have lower upfront payments and no assignment or copyright.
- You can distribute your music using an established platform called ‘DIY’ platforms such as TuneCore or Sistroid. DIY providers offer low-touch (tech-driven), marketing and promotion services. The artist gets all the revenues, while the DIY provider charges a fixed fee for their services (on an annual basis or monthly basis);
- Secure the services of a manager or team to provide support at various levels and arrange distribution through a ‘label service’ provider.
It is amazing, however, that major labels’ market position remains intact despite the revenue gap described above. CMA comments:
“In terms of their volume share of total UK streams, majors accounted for over 70% in 2021. This is a similar percentage as in 2015. Their music is the most popular on the charts. They have rights to 98% of the top 1000 singles em> because of their rights to recording and publishing.
Their control over back catalogs is what makes them powerful in the new streaming world.
However, the business models have been changed
A clear change in the value chain is that 1s and zeros can be produced without incurring the costs of production – pressing vinyl or CDs will cost you much less than printing them.
Two other aspects of the streaming music model have had a greater impact on the upstream value chain.
First, revenue generation in physical media was dependent on one-off sales. This meant that how many times a track or album was played after being purchased did not impact revenues. With streaming, royalties and revenues can be earned over a longer time period: music that is listened to too often will be rewarded accordingly.
The second is that the ongoing fee is not per stream, but a flat subscription fee. CMA noted that the music streaming headline subscription fee has remained remarkably stable over many years. This is because more artists are being streamed and therefore the average value and average earnings per artist fall. This is why streams number in the thousands, if not millions.