A fan listens to music while on the go. Photo Credit: Kojo Kwarteng
During 2022, the “global value of music copyright” increased by over $5 billion to hit $41.5 billion, according to a newly published analysis.
The massive total and several other telling stats emerged in an annual report authored by former Spotify and PRS for Music chief economist Will Page. Worth clarifying at the outset is that the in-depth breakdown doesn’t factor for the live concert space.
Of course, this point renders direct comparisons with different (and decidedly bullish) resources something of a challenge. For instance, Goldman Sachs’ much-discussed “Music in the Air” has forecasted $92 billion in 2023 music revenue as well as $151.4 billion in revenue for 2030, with both all-encompassing numbers also accounting for live shows.
In any event, the latest industry revenue study does, however, consolidate findings from the appropriate annual reports of the IFPI, CISAC, and the publishing-focused Music & Copyright.
As mentioned, Page’s findings include a $41.5 billion music copyright value for 2022, up from $36.4 billion in 2021. Behind the newer sum, the report attaches $26 billion to labels (up $2.5 billion year over year), $11.4 billion to “songwriter collective management organizations” (up $2.2 billion YoY), and $4.1 billion to publishers’ direct revenues (up $400 million YoY).
Notably, the combined value of direct publishing revenue and CMOs represents 37.3 percent of the overall copyright value at hand – up from an approximately 36 percent share during 2021.
For further reference, the IFPI in its 2023 report pinpointed $26.2 billion in global recorded music revenue for 2022, with 67 percent of the sum attributable to streaming. Additionally, CISAC late last month identified €10.8 billion in music-specific collections for 2022.
Back to the report, the text strikes an optimistic tone when discussing vinyl’s perceived long-term potential – the format “ain’t gonna stop spinning anytime soon,” per the document.
Although vinyl’s worldwide sales have for many years been on the rise, fueled by growth in markets including but not limited to the U.S., it should be highlighted that overall volume slipped in the States during H1 2023, according to the RIAA. Nevertheless, amid a growing focus upon (sometimes incredibly expensive) limited-edition releases, vinyl’s sales value increased slightly throughout the same window.
Given the uncertain state of the global economy and the fact that the resurging format’s sales have now climbed for 15 consecutive years, it’ll be especially interesting to see 2023’s full revenue and volume specifics.
Bigger picture, 2024 will mark the first complete year in which all leading music streaming platforms charge $10.99 per month for their individual plans in the U.S., and according to proponents of ongoing compensation reforms, the industry is poised to receive a larger share of the resulting revenue.