The International Federation of the Phonographic Industry (IFPI) released its year-end report on Tuesday (21st March 2023) revealing that global recorded-music revenue growth slowed down significantly in 2022, but still managed to see a 9% increase. In comparison, the growth rate in 2021 was a staggering 18.5%, largely driven by the increase in streaming numbers due to the pandemic.
BeatCurry Team
Despite the deceleration in revenue growth, the past year witnessed a notable rise in global streaming numbers, which played a pivotal role in the overall increase of total trade revenues for the year, reaching $26.2 billion. The report indicates that subscription audio streaming revenues rose by 10.3%, totaling $12.7 billion. Additionally, there were 589 million users of paid subscription accounts by the end of 2022.
Total streaming, including both paid subscriptions and advertising-supported, grew by 11.5%, reaching $17.5 billion, which constitutes 67% of the total global recorded music revenues, according to the IFPI. The organization represents more than 8,000 record company members worldwide.
Physical revenues saw a 4% increase, largely driven by the continued popularity of vinyl sales, whereas performance rights revenue rose by 8.6% and returned to pre-pandemic levels. Sync income also saw a remarkable growth of 22.3%.
The IFPI CEO, Frances Moore, noted that this year’s report highlights the continued efforts of record companies to fulfill their core mission of working with artists to enable them to achieve their maximum creative and commercial potential throughout their careers. However, as the music industry continues to expand, the challenges in recognizing and returning the value of the artists’ work are also becoming increasingly complex, with more actors seeking to profit from music without investing in its development.
While the growth in recorded-music revenue may have slowed down in 2022, the music industry still managed to achieve a remarkable 9% increase in revenue, thanks to the growth in global streaming numbers and the continued popularity of physical sales. The industry is poised to continue to evolve, and record companies will have to navigate the complex challenges that come with this evolution while ensuring that the value of the artists’ work is recognized and returned.
Recorded-music revenues grew in every region around the world in 2022, according to the report’s breakouts below:
- The USA & Canada region – the world’s largest in revenue terms – grew by 5.0% in 2022; The world’s single biggest market, the USA, grew by 4.8% a – exceeding US$10 billion for the first time – and Canadian recorded music revenues increased by 8.1%.
- Asia grew by 15.4% with its largest market, Japan, seeing growth of 5.4% whilst the second largest market, China, grew by more than 20% (28.4%), becoming a global top five market for the first time. In a continuing trend, Asia also accounted for almost half of global physical revenues (49.8%).
- Australasia experienced growth of 8.1%, an increase on the prior year’s growth rate of +4.7%. Australia (+8.1%) remained a top 10 market globally and New Zealand saw a rise in streaming revenues push the overall market to growth of 8.0%.
- Revenues in Europe, the second-largest recorded music region in the world, grew by 7.5%, with the region’s three biggest markets all posting gains: UK (+5.4%), Germany (+2.2%) and France (+7.7%).
- Latin America saw gains of 25.9%, maintaining more than 10 years of regional increases. Every market in the region posted double-digit growth.
- Middle East and North Africa – previously the fastest growing market in 2021, MENA had third highest growth rate in 2022, seeing increase of 23.8%, and representing the highest share for streaming of any region globally (95.5%).
- Sub-Saharan Africa – becoming the fastest growing region in 2022 with more than 30% growth (34.7%), SSA was driven largely by a significant boost to revenues in the region’s largest market, South Africa (+31.4%).
Related reviews and articles you’d like to see:
Subscribe to BeatCurry’s YouTube Channel here
Check out our Web Stories: Interesting scoops, trivia, stories, industry news delivered at your fingertips.
Watch: Exclusive interview with World’s Fastest Guitarist Davide Lo Surdo
Watch: Exclusive interview with GRAMMY awardee, Pt. Vishwa Mohan Bhatt
Exclusive Music Review: Mali Delivers An Ode To Each Broken, Hurt Heart Through ‘Ashes’
Exclusive Music Reviews: Mame Khan’s ‘Desert Rose’ Recites The Heartfelt Journey Of Life
Explore: #BeatCurryShorts NOW!
Explore: Check out the BeatCurry Podcast HERE!
If you’d like to know about the unique and versatile forms and flavors of music, follow us on Instagram, YouTube and Facebook, subscribe to BeatCurry.com and never miss another update from us.