Tuning up: Revenue is projected to increase as artists better adapt to the internet era

Over the past decade, the Musical Groups and Artists industry has been subject to a series of massive shakeups due to the popularity of mp3 players, music piracy, internet radio and online streaming. The steady replacement of physical albums for digital songs has slashed revenue from recordings over the current five-year period, largely due to digital music selling at a lower price point. The transition to digital and a large drop in federal funding for the creative arts have caused industry revenue to grow minimally over the five years to 2018. Over the five years to 2023, industry revenue is forecast to continue growing...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has adapted to the digital environment by placing increased focus on live performances
  • Slow revenue growth has not deterred new musicians from joining the industry
  • A growing economy will benefit most industries across the entertainment sector
  • Industry Report - Industry Key Buyers Chapter

    The Musical Groups and Artists industry is highly fragmented and features a high number of nonemployers, or individual musicians. There are no major players in this industry; even the highest-paid musicians and groups account for a minor share of the industry's revenue. The largest industry players such as the New York Philharmonic or Taylor Swift, still only capture about 1.0% of industry revenue.The rise of the internet as a means of distribution, along with the increasing power of production and mixing software like ProTools and Apple's GarageBand, has enabled individual musicians to record songs and albums with relatively high fidelity and quality. This trend has led to even lower market share concentration in the industry, as the number of musicians has grown substantially. Fur...purchase to read more.

    Additional Insights for the Musical Groups & Artists Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Musical Groups & Artists Industry are

  • Protection of intellectual property/copyrighting of output
  • Ability to quickly adopt new technology
  • Product is sold at high profile outlets
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Album sales in the Musical Groups & Artists industry impact industry performance..

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    What's in this report

    What is the Musical Groups & Artists Industry?

    This industry is composed of musicians, recording artists and songwriters that produce music professionally, either in front of a live audience, in a recording studio or both. Musicians in this industry may earn revenue from songwriting, producing or recording, but they primarily operate as performers. This industry excludes musical theater, opera and other professions involved in the creation of records, such as engineers.

    Industry Products
  • Live performance
  • Session performance
  • Salaried and contract income
  • Recording (label advances and album sales)
  • Royalties
  • Merchandise
  • Industry Activities
  • Rock, dance, country and pop bands writing, recording or performing
  • Independent musicians or vocalists writing, recording or performing
  • Jazz artists and groups writing, recording or performing
  • Choirs writing, recording or performing
  • Musical groups (except theatrical musical groups) writing, recording or performing
  • Chamber musical groups and orchestras writing, recording or performing
  • Symphony orchestras writing, recording or performing
  • Classical musical groups writing, recording or performing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Album sales
  • Percentage of services conducted online
  • Demand from music publishing
  • Federal funding for creative arts

  • Current Performance
  • Volumes fall and rise
  • Upsetting old models
  • Ownership versus access
  • Chart: Revenue Growth

  • Industry Outlook
  • Upbeat market
  • The internet’s pros and cons
  • Table: Musical Groups & Artists Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Musical Groups & Artists Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Music Publishing
  • Casino Hotels
  • Bars & Nightclubs
  • Consumers

  • Key Selling Industries
  • Audio Production Studios
  • Colleges & Universities
  • Concert & Event Promotion
  • Major Label Music Production
  • Music Publishing
  • Musical Instrument & Supplies Stores

  • Products & Services
  • Live performance
  • Salaried and contract income
  • Session performance
  • Other
  • Recording (label advances and album sales)
  • Royalties
  • Merchandise
  • Chart: Musical Groups & Artists Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 44
  • People aged 45 to 54
  • People aged 25 to 34
  • People aged 55 to 64
  • People aged 24 and younger
  • People aged 65 and older
  • Chart: Major Market Segmentation for the Musical Groups & Artists Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesMarketingRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Musical Groups & Artists

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Musical Groups & Artists Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Musical Groups & Artists 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 Musical Groups & Artists Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Album sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • An online tool such as Kickstarter that allows individuals to donate to companies or creative artists in small amounts.
  • Digital Download
  • Audio or visual media that is downloaded from the internet to a computing device, as opposed to being purchased in physical form at a traditional retail outlet.
  • Freelance
  • An artist who has no employer but sells his or her talents to a patron who requires the services.
  • Intellectual Property
  • A creation of the mind, such as literary, musical and artistic works, that is often copyrighted.
  • Music Festival
  • A large, often multiday, multistage concert where musicians, promoters and organizers can exploit economies of scale while attracting large crowds with the lineups and carnival-like atmosphere.
  • Performance Right Organization (Pro)
  • An organization that manages an artist's income in the form of royalties from songs played in third-party media, such as internet radio or in a commercial.
  • What Our Customers Say

    Why buy this report?

    The Musical Groups & Artists Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Musical Groups & Artists:
    • 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 Musical Groups & Artists 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 Musical Groups & Artists, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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