Next big thing: Labels will focus on growing revenue from nontraditional streams

Shifts from physical to digital media have had a marked effect on the operations of the Independent Label Music Production industry. The “Big Three” record labels, Warner Bros. Records, Universal Music Group and Sony Music Entertainment, are slowly adapting, while independent labels are diversifying revenue streams to adjust to the evolving landscape. Sales of physical media and digital downloads have declined steadily over the five years to 2018 in response to emerging subscription-based streaming services. Labels are expected to focus on growing revenue from nontraditional revenue streams to offset declines in both physical sales and downloads over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Major restructuring is underway as industry operators adapt to new revenue streams
  • Many independent labels have been acquired by the Big Three or are reliant on their distribution networks
  • New technologies have made music easier to access than ever before
  • Industry Report - Industry Investment Chapter

    The Independent Label Music Production industry carries a low level of capital intensity. For every dollar spent on labor, the average industry operator invests an estimated $0.07 in capital equipment in 2018. This is a slight difference from 2013 when $0.09 was spent on capital for every dollar spent on labor. While the industry does require a large amount of capital in order to conduct specific operations, including audio production and album manufacturing, the decline in capital intensity during the period is indicative of consumers shift in consumption preferences. As consumers increasingly prefer to consume music through streaming services, industry operators need for album manufacturing equipment will continue to decline. Fur...purchase to read more.

    Additional Insights for the Independent Label Music Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Independent Label Music Production Industry are

  • Protection of intellectual property/copyrighting of output
  • Having a high profile in the market
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Album sales and Demand from major label music production in the Independent Label Music Production industry impact industry performance..

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    What's in this report

    What is the Independent Label Music Production Industry?

    Independent record labels find musical talent, finance the production of music and distribute recordings to retail and digital outlets. These labels have smaller budgets and operations than those of major labels, and independent labels frequently outsource manufacturing and distribution of physical records. Major labels are included in the Major Label Music Production industry (IBISWorld report 51222).

    Industry Products
  • Physical sales (including CDs, vinyl, cassette tapes)
  • Digital album sales
  • Digital track sales
  • On-demand audio streaming
  • Industry Activities
  • Financing of musical projects
  • master recordings
  • Ownership and sale of copyrighted music for licensing purposes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Album sales
  • Demand from major label music production
  • Demand from record stores
  • Per capita disposable income
  • Median age of population

  • Current Performance
  • Music online
  • Passionate amateurs
  • Chart: Revenue Growth

  • Industry Outlook
  • Adapting to new consumer behaviors
  • Moderate growth
  • Table: Independent Label Music Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Independent Label Music Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Major Label Music Production
  • Music Publishing
  • Celebrity & Sports Agents

  • Key Selling Industries
  • Audio Production Studios
  • Recordable Media Manufacturing

  • Products & Services
  • On-demand audio streaming
  • Physical sales (including CDs, vinyl, cassette tapes)
  • Digital album sales
  • Digital track sales
  • Chart: Independent Label Music Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 34
  • Consumers aged 13 to 24
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 55 and older
  • Chart: Major Market Segmentation for the Independent Label Music Production Industry

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

  • Basis of Competition
    Quality products and access to marketsBranding and marketing
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Independent Label Music Production Industry

  • Industry Globalization
    Concord Music Group,
  • Table: Concord Music Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Independent Label Music Production 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 Independent Label Music Production 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
    360 Deal
  • A contract between a label and an artist that contains revenue sharing from all artist activities, rather than just music sales.
  • Digital Download
  • A one-time purchase and transfer of data from the internet to a computer or mobile device that can decode and play the data. The downloaded file is owned by the consumer upon purchase.
  • Indie
  • An abbreviation for an independent music label.
  • Label
  • Any music company that produces, publishes or distributes music.
  • Online Streaming
  • Unlike a digital download, consumers pay a recurring fee to access and listen to music from a digital provider. Files are not purchased individually and ownership is not transferred to the consumer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Independent Label Music Production can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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 Independent Label Music Production:
    • 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 Independent Label Music Production 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 Independent Label Music Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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