Off key: The move to subscription streaming has caused some friction, but revenue is poised to rebound

Digital music has created a shift in the way artists engage with fans, a transition that has had major implications for the Global Music Production and Distribution industry. In general, low-margin digital distribution of music has prompted the industry's largest companies to generate revenue through a range of services that extend beyond simply generating income from record sales. Industry operators will likely embrace new digital technology in the future if they expect to thrive in the changing landscape. Music companies have thus far been slow to enter the digital market for music consumption and their performance over the next five years hinges on their ability to adapt and enhance music consumption from home and mobile devices...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The music industry landscape has transitioned from physical to digital and labels are learning to adapt
  • As copyright becomes less relevant and free music more common, music is being devalued
  • Industry Report - Industry Locations Chapter

    The industry is dominated by operators based in the United States and Europe. More than three-quarters of revenue in the industry is located in these areas, with Africa, the Middle East and Oceania combined representing a distant third.Many of the industry's largest players are headquartered in the United States and most earn the bulk of their revenue there. The United States comprises 34.0% of total industry revenue, while North America as a whole represents 47.3% of the industry's locations. The United States is the largest single user of music licensing in advertising, and has pioneered the use of music as a marketing tool. Als...purchase to read more.

    Additional Insights for the Global Music Production and Distribution Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Music Production and Distribution Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having a high profile in the market
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Global internet usage and Global number of mobile telephone subscriptions in the Global Music Production and Distribution industry impact industry performance..

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    What's in this report

    What is the Global Music Production and Distribution Industry?

    Operators in this industry sign musicians and artists to recording contracts, allocate budgets for artists' recordings, produce and master artists' work, distribute artists' music to retail and promote the artists' work through various advertising campaigns. This industry also includes music publishing, which involves leasing music as intellectual property for use beyond live performance such as in promotional material and other forms of media, notably, streaming services.

    Industry Products
  • Physical sales (including CDs, vinyl, cassette tapes)
  • Digital download
  • Mobile downloads
  • Streaming subscriptions
  • Other digital products
  • Performance rights
  • Synchronization
  • Industry Activities
  • Negotiating recording, publishing, licensing and distribution contracts
  • Producing and mastering artist recordings
  • Distributing recordings to outlets
  • Managing and promoting artist rosters
  • Distributing music to online platforms, including streaming services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Global internet usage
  • Global number of mobile telephone subscriptions
  • Global number of people aged 15 to 34
  • Global advertising expenditure
  • Global per capita income

  • Current Performance
    Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
    A new landscapeStability at last
  • Table: Global Music Production and Distribution Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Global Music Production and Distribution Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Global Department Stores and General Merchandise Stores
  • Global Advertising Agencies
  • Global Movie Production & Distribution
  • Global TV & Radio Broadcasting

  • Key Selling Industries
  • Global Internet Service Providers
  • Global Manufacturing

  • Products & Services
  • Physical sales (including CDs, vinyl, cassette tapes)
  • Digital download
  • Performance rights
  • Streaming subscriptions
  • Other digital products
  • Synchronization
  • Mobile downloads
  • Chart: Global Music Production and Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Hip hop/R&B
  • Rock
  • Pop
  • Alternative/metal
  • Other
  • Electronic/dance
  • Country
  • Chart: Major Market Segmentation for the Global Music Production and Distribution Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Global Music Production and Distribution

  • Basis of Competition
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Other costs

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Global Music Production and Distribution Industry

  • Industry Globalization
    Vivendi, Sony Corporation, Access Industries, Inc.,
  • Table: Vivendi - financial performance
  • Table: Sony Corporation - financial performance
  • Table: Access Industries, Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Global Music Production and Distribution Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Global Music Production and Distribution Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Global internet usage (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • The three largest music producers Universal, Sony and Warner.
  • Label
  • Another name for a producer or distributor of music.
  • P2p
  • Peer-to-peer file-sharing, where music and other files can be traded at no charge between users through the internet.
  • What Our Customers Say

    Why buy this report?

    The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Music Production and Distribution global market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies globally and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Global Music Production and Distribution:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Global Music Production and Distribution market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Global Music Production and Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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