IFPI report shows 7.4% increase in global recorded music

The figure is the highest annual total since 2002 and brings about a sixth consecutive year of growth. The positive trajectory was largely driven by music streaming, which accounted for 62% of all recorded music revenue. Paid subscription streaming revenues increased by 18.5% with the help more than 443 million paying users at the end of 2020. Adding ad-supported streaming, the total streaming figure grew by 19.9% to reach $13.4bn year-on-year.

The growth in streaming revenues substantially offset the decline in other formats’ revenues such as physical, which dropped 4.7%, and performance rights revenues, which decreased by 10.1%. Both figures were impacted largely by the COVID-19 pandemic.

Recorded music revenues grew in every global region, and for the first time the report took into consideration recorded music revenues in the Africa and Middle East region, which soared 8.4% mainly due to activity in the Middle East and North Africa (37.8%). Streaming contributed the most with a 4% increase in revenues.

At 15.9%, Latin America maintained its position as the fastest-growing region globally. Streaming revenues in the region increased by 30.2% and contributed 84.1% to its total revenues.

In Asia, recorded revenues climbed 9.5% and, for the first time, digital contributed more than half of the region’s total revenues. Japan’s recorded revenue decreased from 0.9% in 2019 to a 2.1% in 2020. The market stifled the rest of Asia’s growth rate of 29.9% – and could have made the region the fastest-growing in the world were it not for its poor performance. South Korea’s recorded music market grew by an exceptional 44.8% compared to the previous year, courtesy of K-pop’s success around the world.

The US and Canada region climbed 7.4% in 2020, with US recorded music revenues increasing 7.3% and the Canadian market growing by 8.1%. Europe grew by 3.5%, boasting a 20.7% increase in streaming revenue, which offset declining revenues of other formats. Australasia grew by 3.3%.

In terms of the best-selling artists, albums and songs last year, BTS generated the most sales on the IFPI list, followed by Taylor Swift, Drake and The Weeknd. ‘Blinding Lights’ by The Weeknd topped the digital singles charts, with more than 2.7 billion streams despite the singer receiving zero nominations at this year’s Grammy Awards. Tones and I’s 'Dance Monkey' came in second with more thn 2.3 billion streams, followed by Roddy Rich’s ‘The Box’ at 1.67 billion streams.

Another new addition to the report is a section on social justice and Black Lives Matter, which looks at interviews with the equity, diversity and inclusion execs at the three major labels.

IFPI also held a virtual discussion with key label executives and reporters before publishing the report. In the Q&A segment of the discussion, the topic of artist rights campaigns was raised, with IFPI CEO Frances Moore saying: “Artists have more choice than they’ve ever had. They have enormous choice: whether to be with a label, whether to be a do-it-yourself artist.”

Moore also referenced an IFPI study that she said revealed that artists were getting bigger returns. “In actual fact, artists’ revenues are higher than the revenues coming back to the industry after costs etc.” However, the report is not publicly available.

The IFPI boss added: “There is a misconception that artists are not doing well ... There is very big competition for attention and some of those artists will do very well and others will perhaps have an opportunity that they wouldn’t otherwise have had in other environments,” she said.

Universal Music South Africa and sub-Saharan Africa CEO Sipho Dlamini also touched on Africa’s growth potential for music streaming. “While the African market is today proportionally small, we believe it has significant potential, especially given recent developments in the technology and commercial environments,” he said.

The panel briefly shifted its attention to Asia. Warner Music international president of recorded music Simon Robson suggested that the region was leading in various areas of innovation in the music business. “Live streaming, verch [virtual merchandise], virtual gifting and tipping have been long established in Asia, and the China streaming services have great social media functionality, which just hasn’t been possible with the global DSPs [digital service providers] to date,” the exec said.

Download the IFPI Global Music Report 2021 below (PDF).