Streaming Services Contributed 65% of Global Music Industry Revenue in 2021

The International Federation of the Phonographic Industry (IFPI) report notes that global music industry revenue increased by 18.5% to US$25.9 billion, or approximately Rp372.05 trillion in 2021 (using an exchange rate of US$1 = Rp14,365).

Streaming services contributed the largest share of revenue at 65%. This was followed by physical releases such as CDs, vinyl, and cassettes, which contributed 19.2%.

Royalties accounted for 9.4% of total global music revenue. Downloads and other digital services contributed a further 4.3%.

Synchronization licensing contributed only 2% of total global music revenue. Synchronization licensing refers to agreements between music users and copyright holders granting permission to release songs in video formats, such as YouTube, DVDs, or Blu-ray discs.

The dominance of streaming services in global music industry revenue is attributed to the significant growth in paid subscribers. The IFPI report notes that the number of paid music streaming subscribers last year reached 532 million, an increase of 18.05% compared to the previous year.