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Tag archive: Global Music Report (4)

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IFPI’s Global Music Report 2019 illustrates streaming’s continued rise in Canada and around the globe

IFPI’s anticipated annual State of the Industry” report is now available and paints a picture of an industry transformed by evolving listening trends and emerging markets. Overall, the global music industry experienced its fourth year of consecutive growth, with an increase of 9.7% in 2018. Much of that growth across the globe is attributed to streaming, which increased by 34% and accounted for almost half of global revenue at 47%.

Streaming accounted for 60% of recorded music revenues in Canada in 2018, and increased in trade value by 31.9% from USD $200.7 million in 2017 to USD $264.8 million in 2018. Of that streaming revenue, USD $211.8 million came from subscription audio streams, USD $26.78 million came from ad-supported audio streams, and USD $26.21 million came from video streams. After streaming, the next leading sources of recorded music revenues are “other digital” at 15%, physical sales at 15% and performance rights and synch at 11%.

The reports also list five key elements to fostering fair marketplaces so music continues to thrive. Those elements are:

  • Music’s value must be recognized;
  • Copyright frameworks must be clear and provide legal certainty;
  • Rights holders must be free to decide who can use their music and how;
  • Music must be licensed on fair terms, and;
  • Adequate tools must be available to prevent music from being made available illegally.

Securing sustainable growth for today’s digital music industry will be the topic of focus this Friday in Geneva, as Music Canada and IFPI present ‘An Industry Transformed’ during the convening of the Standing Committee on Copyright and Related Rights (SCCR) by the World Intellectual Property Organization (WIPO).

The top digital single of 2018 in Canada was “God’s Plan” by Drake, who was awarded IFPI’s 2018 Global Artist of the Year Award in February of 2019, becoming the only artist to ever win the award twice. The top digital single worldwide in 2018 was “Havana” by Camila Cabello (feat. Young Thug) with “God’s Plan” in the number two position. The top album of 2018 in Canada was Drake’s Scorpion, and globally was The Greatest Showman (OST) by Cast of ‘The Greatest Showman.’

IFPI’s Global Music Report 2019: State of the Industry is available for download on IFPI’s website.

 

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Global Music Report 2018 shows industry experiencing growth from subscription streaming, but Value Gap needs to be addressed for long term sustainability

IFPI today released its anticipated 2018 Global Music Report, providing a state-of-the-industry guide to the top global markets and highlighting industry-wide trends.

While Canada dropped from the sixth to seventh largest music market in the world, the domestic music industry can be encouraged by marked growth in subscription audio streaming, which grew in trade value from USD $95.34 million in 2016 to USD $160.9 million in 2017. This trend has contributed to the first three consecutive years of growth following 15 years of revenue decline.

In Canada, ad-supported streaming declined slightly in 2017, representing USD $16.24 million in trade value, compared to USD $16.59 million in 2016. Video streams represented USD $23.32 million in trade value in 2017, rising from USD $21.56 million in 2016. The total trade value for all types of streaming rose from USD $133.5 million in 2016 to USD $200.4 million in 2017, a 50% increase. This is similar to the global trend where overall streaming revenues grew by 41.1%.

“I’m encouraged by the consecutive years of growth we’re witnessing. But as streaming continues its rise, it’s more important than ever that this business model supports the people making the music,” says Graham Henderson, President and CEO of Music Canada.

“There are still regulations and cross-subsidies in place, in Canada and around the world, intended to get tech companies off the ground,” says Henderson. “These companies, like Google and Facebook, are now some of the world’s wealthiest and have unprecedented control over content online. Music Canada produced a comprehensive report on the Value Gap in Canada, and more than 3,600 Canadian creators have signed the Focus On Creators letter to the Canadian government asking for legislative help. Any future legislation, including the current Copyright Act review, needs to keep the well-being and future of Canadian creators top of mind.”

Frances Moore, Chief Executive of IFPI, also pointed to addressing the Value Gap as a top priority.

“The industry is on a positive path of recovery but it’s very clear that the race is far from won.” Moore explained in an IFPI release. “Record companies are continuing in their efforts to put the industry back onto a stable path and, to that end, we are continuing our campaign to fix the value gap. This is not just essential for music to thrive in today’s global market, but to create the right – fair – environment for it to do so in the future.”

Music Canada’s 2017 report, The Value Gap: Its Origins, Impacts and a Made-In-Canada Approach, proposes a range of practical, forward-looking solutions tailored to Canada’s marketplace, institutions and legal framework.

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Vinyl sales soar as industry prepares for Record Store Day 2016

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For nearly a decade, the third Saturday in April has become an unofficial holiday for vinyl collectors and music enthusiasts across the globe.

On Saturday, April 16, 2016, eager crate diggers will once again set their alarms early in anticipation of Record Store Day, a music community celebration which aims to gather artists, customers, and staff to celebrate the unique culture of a record store and the special role these independently owned stores play in their communities. Each year, limited edition vinyl and CD titles are made available exclusively for the event. with many of the stores also running special sales throughout the day.

In Canada, an appetite for high-quality sound, artwork and a tangible product has lead to soaring vinyl sales. In 2015, vinyl posted its tenth consecutive year of sales growth, and experienced its biggest overall vinyl sales total in the SoundScan era, with a sales increase of 30% over 2014.

According to IFPI’s 2016 Global Music Report, Canada ranks #5 in top global vinyl sales, pushing 1.3 million units in 2015. Despite the sales surge, vinyl remains a niche portion of the physical market, which contributed 35% to Canada’s recorded music revenue in 2015 largely driven by CD sales. In 2015, digital revenue surged to 52% of Canada’s market share due to the rise in streaming service subscriptions. However, for labels and artists, the revenue generated from the sale of vinyl remains far greater than the revenue generated from free, ad-supported streaming services, due to what is known as the “value gap.”

While vinyl’s resurgence is excellent news for labels and artists, the few remaining North American pressing plants are struggling to keep up with the demand as aging equipment can lead to unforeseen delays for new releases. In 2015, Canada Boy Vinyl in Calgary, AB, opened its doors and is currently listed as the only vinyl pressing plant in Canada.

In Toronto, ON, a new startup aims to fix the issue of plant delays and their backlog of orders. Viryl Technologies, who will join Alan Cross on a panel for a free Record Store Day Music-Technology Meet Up, has developed their prototype “The Warmtone”, which uses digital technology to press up to three records per minute, an increase from the industry standard 35 seconds per unit.

Regardless of production delays, over 150 stores across Canada will participate in Record Store Day, stocked with thousands of new and vintage titles ready to be spun. The full list of participating Canadian record stores can be found at Record Store Day Canada’s website.

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Canada Outpaces Global Music Revenue Growth in 2015 but Outlook Remains Cautious

The global music community celebrates a return to revenue positive in 2015 with a 3.2% growth of industry revenues to US$ 15 billion, while Canada more than doubles this upswing with an 8.3% increase, helping to make up for a double digit loss in 2014.

Driven by a strong release schedule and explosive growth in premium subscription services, largely the result of new entrants in the Canadian market, 2015 finished as an exceptional year for the Canadian music industry. In fact, three of the top ten global recording artists in 2015 were Canadian: Justin Bieber at number four, Drake at number nine and The Weeknd rounding out the top ten.

Despite these positive results however, it is too early to confidently declare a reversal in trends, given that losses in 2012 (-2.9%), 2013 (-5.4%) and 2014 (-11.0%) followed immediately after the positive 2011 figures (+3.1%), which marked the first revenue growth in this century in Canada.

Complete global figures and analysis were released today in IFPI’s Global Music Report 2016.

Highlights of Canada’s 2015 Music Revenues:

  • Digital revenues surge to 52% of total revenues (US$173.5 million), somewhat higher than the global share of 45%
  • Premium streaming revenues explode in Canada, with a 151% increase (US$29.4m in 2015 v. US$11.85m in 2014), overtaking ad-supported streaming revenue, which only grew 32% (US$19.49m in 2015 v. US$14.76m in 2014)
  • Physical revenues in Canada make up 35% of the market (US$ 118.9million), slightly lower than the global share of 39%
  • Performance rights revenues are 11% in Canada compared to 14% globally
  • Synchronization rights are 2% compared to 2% globally

In Canada, as in other countries around the world, a record volume of music is being consumed, yet artists and producers are not enjoying fair compensation, primarily because upload services like YouTube are not paying normal music licensing rates due to the misapplication of a legislative framework called “safe harbours”. This has created what is known as the “value gap”. Furthermore, the “value gap” has resulted in a distorted market, where premium services are forced to compete unfairly with other services that use copyrighted content to build their businesses, but do not pay fair rates.

“In Canada, where premium streaming has had such a significant positive effect on our market in 2015, the “value gap”, where ad-supported services benefit from lower-than-normal licensing rates, causes immense concerns,” says Graham Henderson, President & CEO of Music Canada. “We hope that legislators will work with the music community to address this market distortion and reduce the gap so that rights holders are compensated fairly for their work.”

Complete market information for Canada and all other national markets will be released on Thursday, April 14, 2016 by IFPI.

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