Last year saw the fastest growth in the music industry in 23 years – the last time growth was this strong, Boyz II Men were topping the charts. Recorded music sales in 2017 grew by an impressive 17% to $8.7 billion in the USA last year – but what was the reason?
One main cause of this growth, after decades of stagnation, was the rise of streaming services. Spotify and Apple Music (among others) have driven a 63% rise in sales from streamed music – an incredible figure in just one year.
While online downloads have never matched CD sales, with more people choosing to download illegally than via iTunes or its competitors, streaming has started to fill that gap. And, though Spotify remains the largest streaming service in the world, Amazon and YouTube are looking to enter the marketplace.
This positive news for music fans everywhere is not without its caveats, though. The publication Music Business Worldwide was keen to point out that, assuming growth is sustained and accounting for inflation, it would still take the music industry up to a decade to return to its heyday.
There’s another point to consider too; as streaming services, which have driven growth, reach maturity in that area, the pace of growth could slow down again. This effect has been witnessed in Sweden, where streaming services have already saturated the market and growth has slowed back down.
That means that, to continue to increase profits and grow, the music industry will have to continue innovating. Streaming has put the music industry back in the black, but it may not be a long term solution to continued growth in the music industry.
One thing is for sure – as long as humans have ears and instruments, music will never go out of fashion!
Another area of growth and profit within the music industry is live music, with millennials more likely to pay for experiences (like concerts) than things (like CDs and records.) It’s turned gigs and festivals into opulent (and expensive) extravaganzas that earn artists millions of pounds a year.
If you’re organising an event, live music is a great way to add atmosphere and fun. MN2S booking agency, based in London, offers a diverse selection of artists available to book. Take a look at the website to find out more, and get in touch today.