Streaming and Interest in Physical Media have Led to 18.5% Growth in the Music Industry in 2021Business | March 25, 2022, Friday // 17:27| views
Bulgaria duplicates the result on the world market and reported a growth of 18.6%
18.5% is the global growth of the music market in 2021, announced the Bulgarian Association of Music Producers (BAMP), a national group of the International Federation of the Recording Industry (IFPI) for Bulgaria. The data are from the latest annual report of IFPI - Global Music Report for 2021 and show the seventh consecutive year of growth. The industry's total revenue over the past 12 months has reached .9 billion.
The main driver for revenue growth in 2021 is again streaming and especially its paid subscription form, where there is a jump of + 21.9% compared to the previous year. This has brought the industry .3 billion. By the end of 2021, subscribers with paid subscriptions already number 523 million. Total streaming revenue (subscription and ad-supported) grew by + 24.3% to .9 billion. This is 65% of all revenues of the global music industry, which makes the share of streaming more significant with each passing year (in 2020, revenue from streaming was 62.1%).
Unlike the pandemic 2020, when sales of physical media and revenues from collective rights management declined by -4.7% and -10.1%, respectively, in 2021 the trend is positive. Sales of physical media increased by + 16.1% and revenues from rights management by + 4%.
“We also have a trend of growing total revenues every year. In 2021, they have increased by + 18.6% compared to 2020, as our industry has generated 10.3 million US dollars,” said the executive director of the Bulgarian Association of Music Producers Petya Tocharova. “Despite this growth, however, Bulgaria continues to lag behind in the global ranking of music markets, where we are 56th out of 70 markets monitored by IFPI. However, the fact is that, although very slightly, we are starting to move up, and for the past 12 months we have climbed one position, from 57th to 56th place,” she added.
The Bulgarian music industry is no exception to global trends and in 2021 reported a + 24.5% increase in total streaming revenue (subscription and supported by advertising). The most significant is the increase in revenue from the consumption of video streaming supported by advertising (+ 157.5% compared to 2020). “With the establishment of the leadership position of new technologies, we now communicate differently with music and, in addition to listening to it, we are used to perceiving it and watching it, which determines this unprecedented growth in video streaming. Its share of the total digital sales for 2021 in Bulgaria is 22.2% “, commented the executive director of BAMP.
Despite the decline in sales of physical media in Bulgaria in 2020, in 2021 they reported significant growth. Revenues from vinyl records increased by + 63.9%, and from CDs - by + 17.9%. The disks still have the largest share in physical sales - nearly 65.8% of the total revenue, and in second place are the vinyl records with 31.6% share.
IFPI Chief Executive Officer Frances Moore opened the online presentation of the report in London, expressing concern over the events in Ukraine and the ensuing humanitarian crisis, and stressed that “together with our colleagues from the entire music community, IFPI supports all actions to alleviate the humanitarian refugee situation and calls for an end to the violence.”
Commenting on the Global Music Report, Moore continued: “Worldwide, record companies are strongly committed locally to sustaining music culture and contributing to the development of emerging music ecosystems - by strongly supporting local music and enabling it to reach global audience. The more markets develop, the more they will unite and contribute to a richer, globally interconnected music world.”
“Today's music market is the most competitive in history. Music lovers enjoy more music than ever and in so many different and new ways. This creates great opportunities for artists. Those who choose to partner with record companies do so to benefit from the support of flexible and responsive global teams of experts tasked with helping them achieve creative and commercial success and build their long-term careers.”
“As technology and the online environment continue to evolve and expand, so do creative opportunities to share musical experiences. From the universe to content in computer games, record companies are investing in people and technology to deliver new, highly interactive experiences - adding new ways for artists to connect with their fans.”
Growth of the industry by world regions:
Revenues of the music industry are growing in each of the regions in 2021, as follows:
• Europe, the world's second-largest market, grew by 15.4% in revenue, a remarkably sharp increase from 3.2% in the previous year. All major markets in the region grew in double digits: the United Kingdom (+ 13.2%), Germany (+ 12.6%) and France (+ 11.8%).
• Asia grew by 16.1% and its largest market, Japan, by 9.3%. With the exception of Japan, the region saw a 24.6% increase in revenue. The trend in Asia to consume physical media continues in 2021, with the region accounting for 49.6% of physical revenue worldwide.
• Latin America grew by 31.2%, one of the highest growth rates in the world. Streaming accounts for 85.9% of the market, one of the highest in the world.
• The Middle East and North Africa are in first place in terms of growth rate with a 35.0% increase in revenue for 2021, 95.3% of which is due to streaming.
• The United States and Canada outpaced the previous year's global growth rate of 22.0%, with the US market alone growing by 22.6% and Canadian music revenue growing by 12.6%.
You can download the IFPI Global Music Report 2022 in English HERE
For more information about BAMP, visit BAMP-BG.ORG
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