The International Federation of the Phonographic Industry has released “Global Music Report 2023”, this year’s edition of its annual report detailing what happened in the music industry worldwide last year.
The report says that the worldwide music industry saw revenue grow for the eighth consecutive year, by 9% in 2022, totaling $26.2 billion.
Streaming revenue grew by 11.5%, and now makes up 67% of global revenue, at $17.5 billion. This was driven by a 10.3% growth in paid subscription revenue. Paid streaming services worldwide account for 48.3% of global revenue. Ad-supported streaming services make up of the remaining 18.7% of global revenue that streaming accounts for.
After streaming, the next biggest source of revenue is physical, which now makes up 17.5% of global revenue, at $4.6 billion. The 4% increase in revenue that occurred last year marks the second year in a row that the physical market grew. CD revenue fell .4%, while vinyl sales continued to grow by 17.1%.
Physical is followed by performance rights, which makes up 9.4% of global revenue, at $2.5 billion, a increase of 8.6%. This surpasses pre-pandemic numbers.
After performance rights is downloads and other digital, which now makes up 3.7% of global revenue. This segment brought in $900 million last year, an 11.7% decline. Once again, this is the only channel to see a decline in revenue in 2022, as digital music consumption changes from an ownership model to an access one. Downloads fell by 19.6% to $644.4 million. However, other non-streaming digital formats, like mobile personalization grew by 12.2%.
The last segment is synchronization. It makes up 2.4% of global revenue at $640.4 million. This segment grew by 22.3% compared to 2021.
The top 10 music markets in order are the United States, Japan, the United Kingdom, Germany, China, France, South Korea, Canada, Brazil, and Australia. This is unchanged from 2021, with the exception of China and France switching places, Brazil returning to the top 10 in place of Italy, and Australia falling a spot. China reached the top five for the first time.
For the eighth consecutive year, Asia saw growth, with an increase of 15.4%, outpacing global growth. Part of the reason for this continued growth is the region’s largest market, Japan. For the second year in a row, Japanese revenue grew, by 5.4% in 2022. China saw revenue grow by 28.4%. Revenue from Asia accounted for 22.9% of the global market. Asia was also responsible for 49.8% of global physical revenue.
Source: IFPI
