The Global Physical Music Industry is Shrinking, Replaced by Streaming Services

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Cindy Mutia Annur 28/03/2023 10:31 WIB

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An International Federation of the Phonographic Industry (IFPI) report shows that the revenue of the physical music industry is increasingly eroded and replaced by streaming services.

Global Music Industry Revenue by Segment (1999-2022)

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The Global Physical Music Industry is Shrinking, Replaced by Streaming Services

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Global Music Industry Revenue by Segment (1999-2022)

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Music lovers are increasingly less interested in physical releases such as CDs, vinyl, or cassettes. This is because more and more people are enjoying music streaming services.

This is in line with a report by the International Federation of the Phonographic Industry (IFPI), which shows that revenue from the physical music industry is increasingly being eroded and replaced by streaming services.

Recorded revenue from the physical music industry over the past two decades peaked in 1999 at US$22.3 billion. However, its value has continued to decline until 2022, as shown in the graph.

In contrast, the music streaming industry's revenue has continued to grow from 2005 to 2022. The increase in revenue from this segment has been particularly rapid since 2020, coinciding with the Covid-19 pandemic.

Global music industry revenue totaled US$26.2 billion in 2022, or Rp397.27 trillion (at an exchange rate of Rp15,163/US$). This represents a 9% year-on-year (YoY) growth compared to the previous year.

The music streaming segment contributed US$17.5 billion, or about 67%, to the total global music industry revenue last year.

“Overall streaming (including subscription and ad-supported) accounted for the highest market share, increasing to 67% of the overall market share in 2022, up from 65.5% the previous year,” according to the report.

Meanwhile, revenue from other music segments is not as high. Revenue from downloads and other digital segments has fluctuated over the past two decades. Revenue in this segment increased from 2003 to 2012 but declined from 2013 to 2022.

In contrast, revenue from music royalties and synchronization licensing has tended to increase from 1999 to 2022. This is shown in the graph above.

Editor : Padjar Iswara

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."