Here are some useful statistics:
- IMPALA represents over 4000 independent music companies and national associations.
- IMPALA Sales Awards represent over 100 million albums sold and €1.5 billion in revenue.
- The music sector consists of thousands of independents and (since September 2012) 3 multinationals – “the majors”.
- 99% of music businesses are micro, small or medium sized enterprises – “the independents”.
- The independents are the innovators and early adopters, discovering new talent and producing 80% of all new releases.
- The independents are responsible for 80% of the sector’s jobs, in line with the average 80% of Europe’s jobs generated by SMEs.
- The global independent record label sector is worth $5.6bn representing 37.6% of the global market (key statistics and this infographic are taken from WIN's analysis of the independent music sector).
- The biggest independent now has only 1.5% of the market. Previously this was 7%. The biggest major has 34%.
- The combined market share of the majors is more than 80% (including distribution), climbing to a massive 95% for Top 100 on radio in Europe. Even the Top 2000 is concentrated - only 10% is independent.
- Merlin (the global digital right agency for the independent label sector) members' distribution revenue grew eightfold in 4 years to $353M (2017).
- For the third year running, over 2/3 of Merlin members reported growth each year (2017).
- 67% of Merlin members surveyed reported that digital income represents over 50% their overall business revenues and 64% reported that audio streaming accounts for the majority of their digital revenues (2017).
- 83% of Merlin members are optimistic about the future of their business (2017).
- European cultural & creative sectors account for 7 million jobs and €509 billion of Europe's GDP.
- Europe generates over one third of global recorded music revenues.
- European recorded music revenues totalled €5.27 billion in 2016. Streaming revenues grew to 45.5% to $1.52 billion more than compensating declines in physical formats and downloads (2016).
- In Europe, paid subscription represent 83.1% of streaming revenues.
- Performance rights grew by 3.4% to €1.22 billion in 2016, representing 23.2% of total European music revenues.
- Copyright-intensive sectors account for 9.9 million EU jobs.
- Copyright-intensive industries make a positive contribution to the EU's trade balance: net export of €15bn.
- The music industry's digital revenues grew by 19.1% in 2017, to $9.4bn, with a 41.1% increase in streaming revenue (2017).
- Digital music revenues now account for 54% of total industry revenues, compared to 30% for physical sales (2017).
- Revenues from streaming grew to $6.6 billion in 2017 - a growth of 41.1% compared to 2016 - to become the industry's primary digital revenue stream (2017).
- Number of paying subscribers rose to 176 million in 2017 (97 million in 2016).
- 50% of top tracks played on radio and downloaded in Europe are American.
- Record companies invested $4.5 bn in research and development and marketing in 2015, representing 27% of these companies’ revenues.
- As a whole, the music industry invested 16.9% of its revenue in research and development for new artists in 2015. It is higher than other research-intensive industries (e.g. pharmaceuticals and biotechnology 14.4%, software and computer services 10.1%, aerospace and defence 4.5%, etc.).
- IPR‐intensive industries pay significantly higher wages than other industries, with a wage premium of more than 40%, with copyright-intensive sectors having the highest premium (69%).
Digital services and Social media
- There are more than 230 digital music services available across the EU, providing access to more than 40 million tracks.
- 6 of the top 10 most liked people on Facebook are music artists (updated: June 2016).
- 7 of the top 10 most followed people on Twitter are music artists (updated: June 2016).
- 9 of the top 10 most watched videos of all time on YouTube are music videos. Out of the top 20, 18 are music videos (updated: June 2016).
The value gap
- YouTube makes up 46% of on-demand music streaming
- Video streaming overall makes up 55% of on demand music streaming (paid audio streaming 23% & free audio streaming 22%)
- In 2017, with 272m users audio streams (paid & free) generated $5.569bn, while video streams with 1.3bn users generated $856m
- Spotify paid record companies $20 per user in 2015 while Youtube returned less than $1 for each user.
- Merlin members report that video streaming services command 10 times more users than audio streaming services - but return less than 10% of the revenues
- WIN global market share analysis of the independent music sector: download key statistic and the full report, and check this great infographic below.
- The State of the Industry report - IFPI: click here
- Interesting report on domination of European radio by American repertoire, includes useful statistics on key territories, shows majors/independents' market share, very scary... Cross Border Circulation of European Music Repertoire.pdf
- Interesting report on record companies' investment in music: click here
- Merlin members' survey (2017): click here