New issue of Music & Copyright with UK country report

New issue of Music & Copyright with UK country report

Time Stamp: June 20, 2023 9:49 AM
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The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.

Omdia forecasts new highs for recorded-music retail sales, but growth is set to slow
Omdia has updated its forecasts for retail sales of recorded-music. In line with last year’s estimates, the research service and publisher of Music & Copyright said the recorded-music sector is firmly a growth market with annual increases in revenue expected in each of the years up to and including 2027. However, although the global total will top the record high set in the late 1990s, the annual growth rate at the end of the forecast period will be half of what is expected for this year. Moreover, a straight comparison with prior year fortunes is not strictly accurate given that recent results include performance rights and synchronization. There’s also the small matter of 20+ years of inflation to consider when making comparisons. Including annual price rises, global sales are still a long way short of setting a real terms record. Subscriptions are the single biggest recorded-music category and will generate close to two thirds of global revenue by the end of the forecast period. Furthermore, income from advertising is set to overtake spending on physical formats and synchronization revenue will top sales of downloads.

Gains for BUMA and STEMRA boost Dutch rights collections to record high
Following a couple of difficult years for rights collections in the Netherlands, 2022 has proved to be a strong year for BUMA STEMRA. The impact of lockdowns and restrictions imposed by the government to limit the spread of the COVID-19 virus took their toll on performance receipts, but with the country fully opening up, income from live events and workplaces not only returned to growth but also exceeded prepandemic levels. New and improved licensing agreements with several major music users also boosted last year’s collection total. Online has been an increasingly important revenue source for both BUMA and STEMRA, with music streaming and OTT video services in the Netherlands continuing to grow in popularity. Although total collections for this year are forecast to edge down, expected receipts will still be the second highest in BUMA STEMRA’s history.

Amazon Music benefits from its different approach to streaming
Amazon Music isn’t quite like other major music streaming companies. The company has been mapping a meticulous content course that has served as a serious differentiator for the other leading international music streaming services. And that has meant advocating for particular musical genres, primarily rap and Latin. Furthermore, it has established itself as a pretty capable livestreamed-performance provider that is now moving adroitly into the festival scene. In addition, it has proved pretty adept at developing new content around its chosen musical pathways to engage fans. Amazon Music clearly has the opportunity and insight to take its unique music business model further.

UK country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed UK music industry report. The UK is the world’s third-largest recorded-music market (see Table 1). Earlier this year, the IFPI said the country maintained its global ranking with a trade sales growth rate more than twice that of fourth-placed Germany. In common with many other developed markets around the world that suffered from the impact of the COVID-19 global pandemic, certain parts of the UK music industry were badly affected. Live music was the hardest hit, with the sector forced into an 18-month hiatus. Also, performance-based rights collections took a tumble. However, both have responded well, with consumers returning in large numbers to concerts and festivals and rights collections breaking records. Recorded-music sales held up well during the pandemic, with higher revenue from streaming and vinyl more than offsetting performance rights and synchronization declines. Although last year saw another positive 12 months for trade sales, the overall annual growth rate was down sharply. Moreover, the year-on-year rise in revenue from music subscriptions was in the low single-digit percentage points. UMG extended its distribution lead over second-placed SME.

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