High note: Revenue is projected to increase as artists argue for increased royalty rates

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 2017. The industry has adapted to the digital environment by placing increased focus on live performances, which require self-promotion and business models focused on performance income rather than royalty and recording income...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
0.5%
Forecast Growth 17-22
Profit
Employment
73,033
Businesses
42,002
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Online platforms and tools will continue to reduce the industry’s operating costs
  • Slow revenue growth has not deterred new musicians from joining the industry
  • Digital music sales show no signs of slowing down
  • Industry Report - Industry Products Chapter

    Musicians earn revenue through a wide variety of channels, including income from touring and performances, songwriting and performance rights organization (PRO) royalties, album sales and label advances, commissions and awards and salaries set up through a musician's group (e.g. professional orchestra players are salaried). The distribution of these revenue streams varies greatly among musicians based on genre or role within the industry; for example, chamber ensemble groups earn very little from composition, while this is a significant revenue stream for indie-rock musicians. Likewise, pop musicians tend to earn a greater share of revenue from PRO royalties than artists whose work reaches a smaller audience...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 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
  • Profit
  • Wages
  • Purchases
  • Marketing
  • Rent and utilities
  • Other 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
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Album sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Crowdfunding
  • 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.
  • Why buy this report?

    The Musical Groups & Artists industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    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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