IMS Business Report: Global Dance Music Industry Grows 34% in 2022

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After the financial effects of the COVID-19 pandemic and the interruption of face-to-face programming, dance music The industry is back and better than ever. Data 2023 IMS Business Report It demonstrates the resilience of the global dance music industry, which grew 34% in 2022 to a value of $11.3 billion — a 16% increase from the pre-pandemic period. In 2019, the global dance industry was valued at $8.7 billion.

“It’s not just about going back; That bounced back and almost bounced off the springboard,” said Mark Mulligan, executive director and analyst at MIDIA Research. In addition to writing the report, Mulligan presented his key findings at the following meeting: IMS Ibiza on April 26.

The suppressed demand for live events, a direct result of the quarantine, has caused clubs and festivals to emerge as the primary source of income. As Mulligan warns, while the industry “shouldn’t expect that kind of growth to happen in the coming year and beyond”, that part of it will “remain bigger and more radical than before.”

Mark Mulligan, General Manager and Analyst at MIDIA Research, IMS Business Report For 2023 at the IMS Ibiza conference on April 26, 2023. (Courtesy of IMS)

In particular, dance performances accounted for 39% of all festival bookings in 2022, up 6% from 2021. events), fell from 21% in 2021. Male colleagues made up the remainder of the reservations (85%).

After festivals and clubs, hardware and software was the next biggest but also the slowest growing source of income. Meanwhile, music rights (recording and broadcasting) rose 14%. Publishing was found to outpace the record, with broadcast revenue growing twice as fast as its counterpart. Improvements in wages paid to broadcasters and songwriters have resulted in better equity in the music business for these subgroups and are partly responsible for the expansion of broadcasting.

When it comes to recorded music (worth $31.2 billion), global revenue increased 7% in 2022, indicating slower but still strong growth than in 2021 (25%). According to Mulligan, this increase has been made more effective by cost-of-living crises and geopolitical concerns. Of $31.2 billion in recorded music, streaming, physical ($4.4 billion), digital ($1.1 billion), and other ($5.7 billion) formats account for the largest portion of the pie ($20 billion).

In terms of streaming, Spotify continues to lead the market with 30.5% (187.8 million subscribers). Apple Music and Tencent Music follow with 13.7% (84.7 million subscribers) and 13.4% (82.7 million subscribers) respectively.

It’s worth noting that Spotify accounts for less than a third of global music subscribers. The United States, Germany, and the United Kingdom are the three countries with the largest monthly Spotify listener base; but they are also three of the world’s largest music markets.

According to MIDIA’s research, streaming is currently enjoying the strongest growth in emerging markets, particularly China. According to Mulligan, other emerging markets such as India, Indonesia and Thailand will serve as “engines” of streaming growth in the future, as streaming continues to level the playing field in a way that was not possible before in the pre-streaming era when using physical formats. prevailed.

“In the past, revenues were large in the traditional recorded music business where people had a lot of money to spend. [on] CDs or records… As a result, it was the richest countries that shaped the music industry,” Mulligan explained.

While music streaming continues to expand, MIDIA predicts that non-digital streaming platform (DSP) sources such as TikTok, Twitch, and Matter will serve as post-streaming growth channels that will drive music revenue in the future. TikTok’s impact on the music ecosystem has been well demonstrated and reaffirmed by the report. As of March 23, the average number of daily video creations tagged with the hashtag #ElectronicMusic has increased by 113% since June 2022. The same hashtag has garnered 5.9 billion views worldwide.

The IMS Business Report touts TikTok as the “central place for fan engagement” where electronic music has a healthy presence. This finding is confirmed by the fact that the genre outperformed hip-hop on the platform in terms of social follower growth (21% to 2%). This trend has also spread to Instagram (from 19% to 15%), but hip-hop is on both Spotify (from 24% to 13%) and YouTube (from 11% to 9%). ‘a) triumphed in stream follower growth.

Not surprisingly, TikTok is a major contributor to the powerful “creative culture” of dance music, which is now boasting “more creative than ever”. “More people want to stop just listening and start doing it,” Mulligan said.

As a result, proficiency in using music software, hardware, and both is becoming increasingly valuable in what can be considered a “long-term growth area” in the dance industry. The numbers disagree: In 2022, skill sharing and learning was one of the fastest growing areas in production and DJing, with a total valuation of $108 million.

Beyond TikTok, dance-focused companies and organizations that seek to reduce or completely eliminate traditional barriers to DJing and music production also have a hand in their “creative culture.” Launch of Beatport’s browser-based DJ web application, Beatport DJAn example is this, which allows users to DJ from their own music library without the need for any hardware or software.

According to Mulligan, artificial intelligence (AI) can also powerfully drive its “creative culture”: “[AI] It will help more people make music, and it will mainly help more people make electronic music, so it will act as a funnel that attracts more people to make music.”

To view the full 2023 IMS Business Report, go to: https://www.internationalmusicsummit.com/business-report.

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