GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY

 
CONTINUE READING
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
GLOBAL
MUSIC
REPORT
2023

         → STATE OF THE INDUSTRY
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
2   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                       IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY    3

                                  In an ever
                                  developing and
                                  rapidly changing
                                  music market, we
                                  offer our artists a
                                                                               Whilst we continue
                                                                               to bring high
                                                                               quality content
                                                                               into the world from
                                                                               hugely innovative
                                                                                                           CONTENTS
                                  tailor-made service                          creators, we
             to fit their unique needs. We continue         must all recognise that the worth
             to push hard to achieve the success            and importance of this creativity can
                                                                                                           Global Music Market 2022 in Numbers                                                                                  4
             our artists deserve whilst giving them         be diminished if we don’t proactively
             the space and resources they need to           maintain that value everywhere
                                                                                                           Introduction by Frances Moore                                                                                        5
             make great music!”                             consumers experience content. The
                                                            recording industry represents the
                                                                                                           Global Charts 2022                                                                                                   6
        Konrad von Löhneysen
        Managing Director, Embassy of Music                 music that drives the growth and               Global Market Overview 2022                                                                                         10
                                                            success of many other businesses, so
                                                            we must be vigilant against any race to        Figures by Format 2022                                                                                              12
                              To succeed, music’s           the bottom offered up to consumers.
                              future must be                With new chapters on the horizon
                                                                                                           Figures by Region 2022                                                                                              14
                                                            such as the Metaverse and AI, we will
                              artist-centric. As we
                              enter our industry’s          continue to protect our creators as we
                                                                                                           The Constantly Evolving Partnerships Between Artists and Record Labels                                              16
                              next exciting                 navigate a new complex rights model.”          Driving Long-term Creative and Commercial Success                                                                   18
                              chapter, we must
         remain focused on our shared goal: a               Rob Stringer CBE
                                                            Chairman, Sony Music Group
                                                                                                           A&R: Discovering and Developing Artists and Their Music in 2023                                                     22
         robust, growing and sustainable music
         ecosystem. This is an environment
                                                                                                           Case Study – Sam Ryder                                                                                              24
         in which great music is not drowned
         out by an ocean of noise, where music                                      Music thrives at
                                                                                                           Artist Wellbeing                                                                                                    26
         is easily and clearly accessible for
         fans to discover and enjoy, and an
                                                                                    the intersection of    Discovering New Opportunities for Artists and Their Music                                                           28
                                                                                    culture, technology,
         environment in which the creators of                                       and commerce.          Case Study – Steve Lacy                                                                                             34
         all music content–whether in the form                                      It’s the single most
         of audio or short-form video—are fairly                                    influential global
                                                                                                           Artificial Intelligence: Defining its Place in Music                                                                36
         compensated and can therefore thrive                  art form, with an unmatched ability
         for decades to come.”                                 to attract audiences, drive social
                                                                                                           Local Cultures Driving Music’s Global Growth                                                                        38
        Sir Lucian Grainge
        Chairman & Chief Executive Officer,
                                                               interaction, transcend borders, and
                                                               unite people. Despite this power,
                                                                                                           Case Study - Noga Erez                                                                                              42
        Universal Music Group
                                                               it’s still undervalued compared to          The Global Strength of Local Repertoire                                                                             44
                                                               other forms of entertainment. We're
                                                               excited to unlock the industry’s next       Case Study – Fujii Kaze                                                                                             48
                                                               phase of growth by championing
                                                               extraordinary artists and songwriters,
                                                                                                           Securing A Framework for Long-Term, Sustainable Growth Across the Music Ecosystem                                   50
                                                               building long-term careers and loyal
                                                               fan communities, while developing
                                                                                                           Photo credits                                                                                                       52
                                                               innovative business models and high
                                                               impact tech products. Our future is a
                                                                                                                                                                           © IFPI 2023
                                                               whole universe of opportunity."                                                                             All data, copy and images are subject to copyright and may
                                                                                                                                                                           not be reproduced, transmitted or made available without
                                                                                                                                                 IFPI.ORG                  permission from IFPI. Use of this report, IFPI Global Music
                                                            Robert Kyncl                                                                         @IFPI_ORG                 Report (2023 edition) is governed by Global Music Report
                                                            Chief Executive Officer, Warner Music Group                                                                    Terms of Use (gmr.ifpi.org/terms-of-use) and Global Music
                                                                                                                                                 DESIGNED BY DATA DESIGN   Report Content Usage Rules (gmr.ifpi.org/content-usage).
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
4   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                           IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   5

    GLOBAL
    MUSIC
                       +9.0%                                                  GLOBAL REVENUE GROWTH
                                                                                                      INTRODUCTION
                                                                                                      THIS REPORT RELAYS THE STORY OF
                                                                                                      TODAY’S CONSTANTLY GROWING AND
    MARKET                 8 TH                                                                       EVOLVING MUSIC WORLD.
    2022 IN NUMBERS                                            CONSECUTIVE YEAR OF GROWTH
                                                                                                      Today we have an incredible, kaleidoscopic array
                                                                                                      of music coming from a diverse group of artists

                    US$26.2BN
                                                                                                      across the globe.

                                                                                                      Music continues to grow globally,       This has created new and diverse
                                                                                                      and artists are increasingly            opportunities for artists to connect
                                                                                                      interconnected with fans as a result    with their fans; from harnessing
                                                                                                      of the worldwide infrastructure and     cutting edge technology – ranging             FRANCES MOORE
                                                                                                                                                                                            Chief Executive, IFPI
                                                                                                      investment from record companies.       from creating immersive music
                                                                      VALUE OF GLOBAL RECORDED        Alongside this, record companies
                                                                                                                                              experiences to enhancing health
                                                                                                                                              and fitness activities – to reimagining
                                                                                MUSIC REVENUES        are building and developing local       opportunities to tell artist stories
                                                                                                      teams around the world who are on       through films, TV and brand
                                                                                                      the ground, working with current        partnerships and much more.
                                                                                                      and emerging artists from a growing

                                                                                67.0%
                                                                                                      variety of music scenes. This is        However, as the opportunities for
                                                                                                      driving music’s development whilst      music continue to expand, so too do
                                                                                                      enabling fans to seize the expanding    the areas in which record companies
                                                                                                      opportunities to embrace and            must work to ensure that the value
                                                                                                      celebrate their own local artists and   of the music artists are creating
                                                                                                      culture.                                is recognised and returned. This
                                                                                                                                              challenge is becoming increasingly
                                                                                                      The core of a record company’s          complex as a greater number of
                                                                        OVERALL STREAMING SHARE       mission remains partnering with         actors seek to benefit from music
                                                                              OF GLOBAL REVENUE       artists to help them achieve their      whilst playing no part in investing in
                                                                                                      greatest creative and commercial        and developing it.
                                                                                                      potential. Today, that partnership
                                                                                                      has expanded into more areas and        Ultimately, however, the story of

                                                                                   10.3%
                                                                                                      more parts of the world as record       this report is one of innovation and
                                                                                                      companies increase their focus on       growth and, above all else, great
                                                                                                      innovation.                             artists and their music.

                                                                           GROWTH IN SUBSCRIPTION
                                                                             AUDIO STREAM REVENUE

                                                            Sam Smith photo by Michael Bailey Gates
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
6   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   7

    GLOBAL
    CHARTS
    MOST POPULAR ARTISTS &                                     02                                              03
    BEST SELLERS OF 2022
                                                                 BTS
                                                                                                                                                                   04
                                                                                                                       Drake
      TOP 10 GLOBAL RECORDING ARTIST CHART 2022
                                                                                                                                                                         Bad Bunny

         01                                                    05
                                                                     The Weeknd
                                                                                                               06
                                                                                                                        SEVENTEEN
                                                                                                                                                                   07
                                                                                                                                                                         Stray Kids

                                                               08                                              09
       Taylor Swift
                                                                     Harry Styles
                                                                                                                                                                   10
                                                                                                                       Jay Chou
                                                                                                                                                                         Ed Sheeran
                                                            The IFPI Global Recording Artist Chart measures consumption across all formats (including
                                                            streaming formats, digital and physical albums, and single sales) and all countries in a calendar
                                                            year. It is weighted based on the relative value of each method of consumption.
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
8   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                     IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   9

    GLOBAL TOP 10                                                                                                                        GLOBAL TOP 10

      SINGLES CHART 2022                                                                                                                   ALBUMS CHART 2022
                                             GLOBAL SUBSCRIPTION                                                 GLOBAL SUBSCRIPTION
                                              STREAMS EQUIVALENT                                                  STREAMS EQUIVALENT

                                01                                                                  06                                                            01                                                                    06
                                                                                                    IMAGINE DRAGONS
                                HARRY STYLES                                                        & JID                                                         BAD BUNNY                                                             STRAY KIDS
                                AS IT WAS                   2.28BN                                  ENEMY                    1.26BN                               UN VERANO SIN TI                                                      MAXIDENT

                                02                                                                  07                                                            02                                                                    07
                                GLASS ANIMALS                                                       ED SHEERAN                                                    TAYLOR SWIFT                                                          SEVENTEEN
                                HEAT WAVES                  1.75BN                                  SHIVERS                  1.23BN                               MIDNIGHTS                                                             FACE THE SUN

                                03                                                                  08                                                            03                                                                    08
                                THE KID LAROI &
                                JUSTIN BIEBER                                                       GAYLE                                                         HARRY STYLES                                                          BLACKPINK
                                STAY                        1.74BN                                  ABCDEFU                  1.22BN                               HARRY'S HOUSE                                                         BORN PINK

                                04                                                                  09                                                            04                                                                    09
                                ELTON JOHN &
                                DUA LIPA                                                            BAD BUNNY &
                                COLD HEART                                                          CHENCHO CORLEONE                                              BTS                                                                   OLIVIA RODRIGO
                                (PNAU REMIX)                1.34BN                                  ME PORTO BONITO          1.21BN                               PROOF                                                                 SOUR

                                05                                                                  10                                                            05                                                                    10
                                THE WEEKND                                                          ED SHEERAN                                                    ENCANTO CAST                                                          ED SHEERAN
                                SAVE YOUR TEARS             1.32BN                                  BAD HABITS               1.20BN                               ENCANTO OST                                                           =

                                                                                                                                         The IFPI Global Album Chart takes into account all consumption formats, spanning physical sales, digital
    The IFPI Global Single Chart measures digital format singles across a calendar year, including paid subscription                     downloads, and streaming platforms across a calendar year. It is weighted based on the relative value of each
    streaming, ad-supported platforms, and single-track downloads and streams.                                            Source: IFPI   method of consumption. For the full Top 20 Global Artists, Singles and Albums please see www.ifpi.org                      Source: IFPI
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
10   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                                                              IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY     11

     GLOBAL MARKET
                                                                                                                                                                   GLOBAL RECORDED MUSIC INDUSTRY REVENUES 1999 - 2022 (US$ BILLIONS)

                                                                                                                                                                  30
                                                                                                                                                                  30

                                                                                                                                                                                                                                                                                                                           0.6

     OVERVIEW 2022
                                                                                                                                                                                                                                                                                                                           0.6
                                                                                                                                                                  25
                                                                                                                                                                  25                                                                                                                                                0.5     2.5
                                                                                                                                                                                                                                                                                                                    0.5    2.5
                                                                                                                                                                                                                                                                                                                    2.3    0.9
                                                                                                                                                                                     0.6                                                                                                                            2.3    0.9
                                                                                                                                                                                     0.6                                                                                                                      0.4    1.1
                                                                                                                                                                  20                       0.7                                                                                                                0.4   1.1
                                                                                                                                                                  20                       0.7                                                                                                          0.5
                                                                                                                                                                                                 0.7   0.8                                                                                              0.5   2.2
                                                                                                                                                                                                 0.7   0.3
                                                                                                                                                                                                       0.8   0.8                                                                                  0.5         2.2
                                                                                                                                                                                                       0.3   0.8
                                                                                                                                                                                                             1.0   0.9                                                                                  2.4
                                                                                                                                                                                                             0.1   0.9                                                                            0.5         1.2
                                                                                                                                                                                                             1.0   1.9   1.1                                                                0.4         2.4   1.2

     THE GROWTH OF THE GLOBAL INDUSTRY CONTINUES
                                                                                                                                                                                                             0.1         1.1                                                                      2.5
                                                                                                                                                                                                                   1.9
                                                                                                                                                                                                                   0.1                                                              0.3     0.4         1.4
                                                                                                                                                                   15                                                          1.1                                                                2.5   1.4
                                                                                                                                                                                                                   0.1   2.6   1.1                                                  0.3     2.2
                                                                                                                                                                  15
                                                                                                                                                                                                                         2.6          1.2 0.3       0.3     0.3   0.3         0.3           2.2   1.6
                                                                                                                                                                                                                         0.2          1.2 0.3       0.3     0.3   0.3   0.3   0.3    2.1          1.6                    17.5
                                                                                                                                                                                                                               3.2        1.3       1.3     1.4         0.3         2.1
                                                                                                                                                                                                                         0.2   3.2        1.3       1.3     1.4
                                                                                                                                                                                                                                                                  1.6
                                                                                                                                                                                                                                                                        1.7   1.8           2.5                     15.7 17.5
                                                                                                                                                                                                                                      3.5                         1.6         1.8           2.5                     15.7
                                                                                                                                                                        22.3                                                   0.3   3.5                                1.7         3.1
                                                                                                                                                                                  21.6
                                                                                                                                                                        22.3 21.0 21.6                                         0.3         3.7
                                                                                                                                                                   10        21.0      20.1                                                         4.1     4.2                     3.1                    12.7
                                                                                                                                                                                                                                     0.4 3.7        4.1           4.1         3.6                     10.7 12.7
                                                                                                                                                                  10                   20.1 18.5 18.0                                0.4                    4.2         3.9   3.6
                                                                                                                                                                                            18.5 18.0 16.8                                0.4                     4.1   3.9                       8.8 10.7
     Rising to US$26.2 billion, the global recorded                   streaming) digital seeing a decline. Subscription streaming                                                                     16.8 15.2
                                                                                                                                                                                                           15.2 13.1
                                                                                                                                                                                                                                          0.4       0.6
                                                                                                                                                                                                                                                    0.6     0.9
                                                                                                                                                                                                                                                                  1.3               4.4
                                                                                                                                                                                                                                                                                            6.2
                                                                                                                                                                                                                                                                                            6.2
                                                                                                                                                                                                                                                                                                  8.8
                                                                                                                                                                                                                                                            0.9         1.8   2.7   4.4
     music market grew by 9.0% in 2022.                               was the leading driver of growth (+10.3% to US$12.7 billion).                                                                             13.1 11.0                                         1.3
                                                                                                                                                                                                                                                                        1.8   2.7
                                                                                                                                                                   5                                                 11.0            9.6
                                                                      Overall streaming (including subscription and advertising-                                   5                                                                 9.6    8.2
                                                                                                                                                                                                                                            8.2     7.5     6.9
     Revenues increased in every region and in each of the world’s    supported), accounted for the highest proportion of the                                                                                                                       7.5     6.9   6.1   5.4   5.2
                                                                                                                                                                                                                                                                  6.1               5.0     4.7   4.2               4.4    4.6
     top 10 markets, with China moving into the top five for the      market, increasing to a 67.0% share of the overall market                                                                                                                                         5.4   5.2   5.0     4.7         3.9   3.8          4.6
                                                                                                                                                                                                                                                                                                  4.2   3.9   3.8   4.4
     first time ever and Brazil re-entering the top 10. Growth came   in 2022 up from a 65.5% share the prior year.                                               0
                                                                                                                                                                  0
     from a wide range of revenue sources: once again there was a                                                                                                        1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
                                                                                                                                                                        1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
     rise in revenues from streaming, physical, performance rights
                                                                                                                                                                        22.3 21.0 22.1 20.7 19.2 19.2 18.7 18.1 16.9 15.7 14.6 13.8 13.8 13.8 13.5 13.1 13.6 14.8 15.9 17.5 18.9 20.3 24.0 26.2
     and synchronisation, with only downloads and other (non-                                                                                                           22.3 21.0 22.1 20.7 19.2 19.2 18.7 18.1 16.9 15.7 14.6    13.8 US$
                                                                                                                                                                                                                           TOTAL REVENUE 13.8BILLIONS
                                                                                                                                                                                                                                                  13.8 13.5 13.1 13.6 14.8 15.9 17.5 18.9 20.3 24.0 26.2
                                                                                                                                                                                                                                     TOTAL REVENUE US$ BILLIONS

                                                                                                                                      BTS photo by BIGHIT MUSIC
                                                                                                                                                                    Total Physical         Total Streaming          Downloads & Other Digital               Performance Rights             Synchronisation
                                                                                                                                                                    Total Physical         Total Streaming          Downloads & Other Digital               Performance Rights             Synchronisation

                                                                                                                                                                   GLOBAL RECORDED MUSIC REVENUES BY SEGMENT 2022

                                                                                             TOP 10 MUSIC MARKETS IN 2022
                                                                                                                                                                  2.4%
                                                                                             01                 USA                                               Synchronisation

                                                                                             02                                                                                                                                                                                                               67.0%
                                                                                                                                                                  9.4%
     +9.0%
                                                                                                                JAPAN
                                                                                                                                                                                                                                                                                                        Total Streaming

                                                                                             03                 UK
                                                                                                                                                                  Performance
                                                                                                                                                                  Rights
                                                                                                                                                                                                                                                                                                              18.7%
     GLOBAL RECORDED MUSIC                                                                   04                 GERMANY
                                                                                                                                                                  17.5%
     MARKET GROWTH                                                                                                                                                                                                                                                                                           Ad-supported

                                                                                             05                 CHINA
                                                                                                                                                                                                                                                                                                                  streams

     +11.5%
                                                                                                                                                                  Physical
                                                                                             06
                                                                                                                                                                                                                                                                                                              48.3%
                                                                                                                FRANCE

     GROWTH IN OVERALL
     STREAMING REVENUES
                                                                                             07                 SOUTH KOREA                                       3.6%                                                                                                                                     Subscription

                                                                                             08                                                                   Downloads &                                                                                                                             audio streams

     589m
                                                                                                                CANADA                                            Other Digital

                                                                                             09                 BRAZIL

     USERS OF PAID SUBSCRIPTION
     ACCOUNTS                                                                                10                 AUSTRALIA
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
12   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   13

     FIGURES BY                                                                                                                         STREAMING
                                                                                                                                                                +11.5%
     FORMAT 2022
     In 2022 there were revenue gains across nearly all format
     categories, with streaming continuing to dominate the global        PHYSICAL
                                                                                                   +4.0%
                                                                                                                                          Global revenues from streaming continued to
                                                                                                                                       increase in 2022, seeing double-digit growth (+11.5%)
                                                                                                                                       and reaching US$17.5 billion. Although this was a slower
                                                                                                                                       rate of growth than the prior year (+23.9%), there was
                                                                                                                                       a varied picture across the globe with some regions
                                                                                                                                       posting big climbs in streaming revenues. Revenues from
                                                                                                                                       subscription streaming grew by 10.3% globally, reaching
                                                                                                                                       US$12.7 billion in 2022.

     revenue mix. Whilst growth rates across all formats were lower       Physical format revenues – including CDs, vinyl
     than the prior year – with the exceptional growth in 2021 partly   and other physical formats – increased for a second
     attributable to a post-pandemic boost – there were double-digit    year running, albeit not matching the prior year’s
                                                                        growth (+16.1%) which had been stimulated by a post-
     gains in streaming and resilience in the physical market.

                                                                                                                                                                 -11.7%
                                                                        pandemic resurgence. Growth of 4.0% equated to
                                                                        US$4.6 billion in revenues, taking physical to a 17.5% share
                                                                        of the overall market. Within this, revenues from CD and
                                                                        other physical revenues saw a slight decline (-0.4%) whilst
                                                                        vinyl’s upward trajectory – sustained for more than a
                                                                        decade - continued with growth of 17.1% in 2022. Physical
                                                                        saw its strongest performance in Asia once again, with          DOWNLOADS & OTHER DIGITAL
                                                                        that region accounting for almost half the global revenues
                                                                        for physical (49.8%).                                            In an expected trajectory, downloads and other
                                                                                                                                       (non-streaming) digital – representing just 3.6% of
                                                                                                                                       the overall market - was once again the only format
                                                                                                                                       category to experience decline in 2022, as streaming
                                                                                                                                       continued to increase its foothold as the dominant
                                                                                                                                       digital format. Within this, revenues from permanent

                                                                                                   +8.6%
                                                                                                                                       downloads fell by 19.6% to US$644.4 million whereas
                                                                                                                                       other non-streaming digital formats, including mobile
                                                                                                                                       personalisation grew by 12.2%.

                                                                         PERFORMANCE RIGHTS
                                                                          Revenues from performance rights – the use of

                                                                                                                                                          +22.3%
                                                                        recorded music by broadcasters and public venues
                                                                        – grew by 8.6%. Reaching US$2.5 billion in 2022, the
                                                                        revenues surpassed their pre-pandemic levels in 2022
                                                                        and made up 9.4% of the global market.

                                                                                                                                        SYNCHRONISATION
                                                                                                                                         Accounting for 2.4% of the market in 2022,
                                                                                                                                       synchronisation – revenues from the use of recorded
                                                                                                                                       music in advertising, film, games and TV – maintained
                                                                                                                                       strong increases, posting another year of growth
                                                                                                                                       exceeding 20% and reaching US$640.4 million.

     Harry Styles photo by Lillie Eiger
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
14   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                    IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   15

     FIGURES                                                                                    EUROPE
                                                                             The world’s second largest region for recorded
                                                                           music revenues saw growth of 7.5% in 2022. UK,
                                                                                                                                                                                                                           ASIA
                                                                                                                                                                                                      Asia experienced double-digit growth for the

     BY REGION                                                                                                                          MIDDLE EAST & NORTH AFRICA
                                                                           Germany and France remained the three largest                                                                          third consecutive year, up by 15.4% and outpacing
                                                                          markets in Europe, all posting growth (+5.4%, +2.2%                                                                                the overall global growth rate.
                                                                                        and +7.7% respectively).                       Posting the world’s third highest growth rate in
                                                                                                                                    2022, Middle East & North Africa saw revenues from            Japan, the region’s largest market saw a second year
                                                                          Europe’s revenues from streaming accounted for more                recorded music climb by 23.8%.                         of consecutive growth (+5.4%) whilst the region’s

     2022
                                                                            than a quarter of revenues from the format globally                                                                     second largest market – China – saw a significant
                                                                             (26.0% share) and also accounted for the highest            Streaming accounted for the vast majority of               rise of 28.4% pushing it into the top five markets
                                                                             proportion of revenues from performance rights              the market, with those revenues accounting               globally for the first time. Overall revenues from Asia
                                                                              (54.9% of global performance rights revenues).                          for a 95.5% share.                                accounted for 22.9% of the global market.

     Once again, the recorded music market saw
     growth in every region across the globe in
     2022. Four regions posted double-digit gains,

                                                                                                                                  +7.5%
     outpacing the overall growth rate of 9.0% and
     Sub-Saharan Africa overtook Middle East and
     North Africa as the fastest growing area.

                                                                      +5.0%
                                                                                                                                      +23.8%                                                    +15.4%
                       USA & CANADA

                                                                                                                                               +34.7%
         Maintaining its foothold as the world’s largest
         region for recorded music, revenues in the

                                                                                                    +25.9%
        USA and Canada increased by 5.0% in 2022; a
        slower rate than the prior year (+21.8%) when

                                                                                                                                                                                                            +8.1%
        exceptional market growth had been partially
             driven by a post-pandemic boost.

         Both USA (+4.8% in 2022) and Canada (+8.1%)
         remained global top 10 markets, with USA the
          single biggest national market in the world,
        exceeding US$10 billion for the first time. Overall
        the USA & Canada region represented 41.6% of

                                                                                                                                              SUB SAHARAN AFRICA                                               AUSTRALASIA
                       the global market.

                                                                                                                                      With a steep increase of 34.7%, and the only region           In Australasia, Australia – remaining a top 10

                                                                                LATIN AMERICA
                                                                                                                                     to see more than 30% growth, Sub-Saharan Africa              market – experienced growth of 8.1%, driven
                                                                                                                                   became the fastest growing region for recorded music          largely by streaming. Similarly New Zealand saw
                                                                       Revenues in Latin America rose by 25.9%                                        revenues in 2022.                            recorded music revenues increase by 8.0%.
                                                                   continuing a decade-plus trajectory of growth.
                                                                                                                                     Growth was boosted by a strong climb in revenues in        Overall, recorded music revenues in the Australasia
                                                              Every market saw double-digit growth, including the region’s         South Africa, the region’s largest market (+31.4% versus a   region rose by 8.1%, an increase on the prior year’s
                                                               two largest markets, Brazil (+15.4%) and Mexico (up steeply                   modest 2.4% growth the prior year).                               growth rate of 4.7%.
                                                                by 24.3%). Once again, streaming revenues dominated,
                                                                  accounting for 85.2% of the Latin American market.
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
NERSHIPS
 16   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY

      THE CONSTANTLY
                                                                                                                                                                             IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY    17

TNERSHIPS
                                                                                                                                                                                                    BLACKPINK photo by Jungwook Mok

      EVOLVING PARTNERSHIPS
      BETWEEN ARTISTS AND
 TNERSHIPS
      RECORD LABELS
      At its core, a record company continues

RTNERSHIPS
      to be focused on partnering with
      artists to find creative and commercial
      success. Today, that partnership has
      expanded into more areas and more
      parts of the world; creating more
      opportunities to reach and connect
      with an increasingly diverse fanbase.
                                                                                               Dennis Kooker, President, Global         approaches, giving autonomy to               artist development and moving

ARTNERSHIPS
      Referencing the likes of Aya Nakamura’s Francophone-                                     Digital Business at Sony Music           operators, fostering healthy internal        culture forward are the priority—not
      first collaboration with Fortnite and Spinnin’ Records                                   Entertainment, says that in order        competition because at the end of            those who are solely in this to seize
      creating NFTs with LGND.io, Simon Robson, President,                                     to do this, record companies must        the day, we are a collection of labels       financial opportunities in a growing
      International, Recorded Music, Warner Music Group                                        simultaneously serve the immediate       all founded by entrepreneurs who             market. Where were those people
      explains, “Music is integral to so many different elements                               needs of artists whilst building         believe—in the face of tremendous            when the industry was in decline and
      of our lives and not just through the ‘traditional’ streaming                            towards what they will require next.     challenges—that an artist they               needed help? We were here, and we
      services; you have social media, health and fitness, gaming                              “Priority number one is executing on     discover could change the world.”            were investing all through the difficult
      and Web3 opportunities and much more. We are constantly                                  what’s happening today for our artists                                                years.”
      trying to develop these opportunities for our artists.”                                  – identifying where the opportunities    “That spirit is very much alive within
                                                                                               are and what needs to be done            UMG. We have a culture that prizes
                                                                                               now. We’re also in a business that       that philosophy and renews that

 ARTNERSHIPS
                                                                                                      continues to evolve in material   behaviour regularly.”
                                                                                                      ways, so we have significant
                                                                                                      dedicated resources that are      However, Tanous goes on to warn
                                                                                                      focused towards the future.       that as the opportunities continue to
                                                                                                     It's hugely important for the      grow in the music ecosystem, it has
                                                                                                                                                                                       We help extraordinary
                                                                                                sake of our artists and their ongoing   become more important than ever                talent cut through
                                                                                                success that we effectively over-       to ensure value is returning to those          the background noise
                                                                                               deliver for them in both these areas,    committed to investing in, creating
                                                                                                 and that we invest for the future      and developing artistry and music.
                                                                                                                                                                                       in our short-span
                                                                                                 before it happens.”                                                                   attention economy,
                                                                                                                                        “Everybody I work with got into this           enabling them to truly
                                                                                                 Will Tanous, EVP & Chief               business because working with artists
                                                                                                 Administrative Officer, Universal      and music is not merely a job, it’s a
                                                                                                                                                                                       connect with fans and
                                                                                                 Music Group, feels it is the           calling. There are a lot of new and            so unlock a universe of
                                                                                                 entrepreneurial spirit at the heart    different players in the ecosystem             opportunities.”
                                                                                                 of record companies that drives        now that the industry has returned
                                                                                                                                                                                       MAX LOUSADA
                                                                                                 the increasing opportunities           to growth. We need to make sure the
                                                                                                                                                                                       CEO, Recorded Music,
                                                                                                 for artists. “The things we prize      people who are setting the agenda              Warner Music Group
                                                                                                 are innovation, taking diverse         for music are the people for whom

                                                              Jay Chou photo courtesy of JVR
GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
18   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                                   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   19

     DRIVING LONG-TERM CREATIVE                                                                                                                                                                         We are a collection of labels all founded by entrepreneurs
                                                                                                                                                                                                        who believe - in the face of tremendous challenges - that

     AND COMMERCIAL SUCCESS
                                                                                                                                                                                                        an artist they discover could change the world.”
                                                                                                                                                                                                        WILL TANOUS
                                                                                                                                                                                                        EVP & Chief Administrative Officer, Universal Music Group

     On the ground, record labels are building
     teams of skilled executives who can support                                                                                                                                                                             MARKETING
     and enhance an artist’s creative vision, whilst                      UPFRONT                                                                     A&R                                                                Influencer campaigns
                                                                        INVESTMENT                           BUSINESS                                                                  CREATIVE                                  Digital                       ARTIST BRAND
     also understanding the consumer market that                                                                                                  DEVELOPMENT                                                              (social media, ads)
                                                                                                                                                                                                                                                               OPPORTUNITIES
                                                                           Advance
                                                                          payment                             AFFAIRS                           Session organisation             DEVELOPMENT SERVICES                           Physical
     surrounds each project.                                              Financial                           Licensing                             Song writing                        Photoshoots                       (posters, billboards)               Sync opportunities
                                                                                                                                                   development                             Styling                         Audience analysis                  Brand partnerships
                                                                        transparency                         agreements
                                                                                                                                                                                       Video creation                      CRM development                       Merchandise
                                                                                                               Content
                                                                                                             protection                                                                 Social media                                                           New technologies
                                                                                                                                                                                        development                                                             (gaming, web3)

                                                             ARTIST                               PARTNERSHIP                                             CREATIVE DEVELOPMENT                                                 COMMERCIAL SUCCESS

                                                                                                                                                                                                                                                        PROMOTION
                                                                                       ARTIST WELFARE                                                                  RECORDING                                                                             TV
                                                                                         PROGRAMME                              GLOBAL                                 Studio access
                                                                                                                                                                                                                     GLOBAL                                Radio
                                                                                         Portal access                                                                  Production                                                                        In-store
                                                                                        Real time access                  INTER-CONNECTIVITY                              Mixing                                  DISTRIBUTION                         performances
                                                                                                                             Cross-cultural                              Mastering                                 Licensed DSPs                         Podcasts
                                                                                         Legal support
                                                                                                                             collaborations                                                                         Merchandise                          Streaming
                                                                                                                            Audience analysis                                                                       CDs and vinyl

                                                                 These executives vary from                                                      our short-span attention economy,                  From a global perspective, the world             “We’ve got to constantly think beyond
                                                                 marketing professionals, data                                                   enabling them to truly connect with                for artists now is connected in a                our limits and beyond any traditional
                                                                 scientists, promotion teams and                                                 fans and so unlock a universe of                   way that it hasn’t been previously.              barriers or parameters for each and
                                                                 beyond – all of whom are trained                                                opportunities.”                                    Record labels, therefore, must work              every artist.”
                                                                 in understanding each artist’s own                                                                                                 harder than ever to connect different
                                                                 unique vision and how to bring that                                             Marie-Anne Robert, Managing                        teams in different regions – sharing             The ways that artists can partner with
                                                                 vision to a global audience.                                                    Director, Sony Music France, agrees,               information, best practice and ideas             record companies also continues to
                                                                                                                                                 explaining that having a label team                around how to break artists and build            evolve, with more flexibility being
                                                                 Max Lousada, CEO, Recorded Music,                                               that is able to adapt to new challenges            long term audiences in every corner              factored into each partnership,
                                                                 Warner Music Group, outlines,                                                   is vital in today’s highly competitive             of the globe.                                    tailored around each artist’s unique
                                                                   “Record labels constantly deliver                                             market. “It's extremely hard to break                                                               needs and requirements.
                                                                      impact and add value to artists                                            new artists and develop new talent                 In terms of connecting these dots,
                                                                        in a fast-changing market.                                               in a global music market where                     Melissa Thomas, Executive Vice
                                                                          That’s not just about                                                  numerous tracks are uploaded every                 President, International Marketing,
                                                                           sparking imagination,                                                 day and competing for people’s                     U.S. Repertoire, Sony Music
                                                                            curiosity or excitement                                              attention becomes ever more                        Entertainment, explains, “Today, a
                                                                             in fans, but also                                                   challenging. That’s why we’ve put                  music fan’s attention is being pulled
                                                                              providing the strategic                                            tremendous effort into getting the                 in so many different directions,
                                                                              advice artists need to                                             best team on board to manage each                  wherever they are in the world. To
                                                                              sustain success over                                               project – this team can then adapt                 cut through that, we have to figure
                                                                               the long-term. We                                                 more effectively to an artists’ needs,             out a way to bring our artists into
                                                                               help extraordinary                                                put an emphasis on developing the                  that local conversation and help tell
                                                                                talent cut through the                                           right story around the artist and help             their stories in an authentic and
                                                                                background noise in                                              foster their creativity.”                          compelling way.

                                                                                Dave photo by Andrew Timms
20   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                               IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   21

                                                                                                                                                                                                   We’ve got to constantly
                                                                                                                                                                                                   think beyond our
                                                                                                                                                                                                   limits and beyond any
                                                                                                                                                                                                   traditional barriers or
                                                                                                                                                                                                   parameters for each and
                                                                                                                                                                                                   every artist.”
                                                                                                                                                                                                   MELISSA THOMAS
                                                                                                                                                                                                   Executive Vice President,
                                                                                                                                                                                                   International Marketing,
                                                                                                                                                                                                   U.S. Repertoire,
                                                                                                                                                                                                   Sony Music Entertainment

      SEVENTEEN photo courtesy of HYBE

                                                                                                                                          FKA Twigs photo courtesy of Atlantic Records

     Vanessa Bosåen, President, Virgin                   “So, if you are an independent artist    “When you start answering all those
     Music Label & Artist Services, offers               you can partner with Virgin, and         questions, it becomes clear that
     a slightly different package of support             together we can keep that completely     there are not that many places that
     from a ‘traditional’ label. At Virgin,              independent feel, but you will have      can offer all those resources to an
     artists tend to come with music ready               access to all of our services and plug   artist. It's most likely a company
     to be launched and looking to buy the               into our global network. We have         that has invested heavily in building
     expertise and experience of her team                access to sync and brand briefs via      an infrastructure designed to
     to help distribute and market it to                 Universal’s in-house team – Globe –to    support artists, a company that
     fans: “Artists will come to us with their           the world's best merch system, to the    has recruited and trained best-in-
     music that is ready, but they need                  D2C network: all that infrastructure     class teams in every department
     the services to take that music and                 that you wouldn't have had access to     from data scientists to A&R to global
     promote it to the world. That's what                before.”                                 marketing.”
     we can provide at an outstandingly
     high standard: a network of all of                  Tanous returns to the subject of the
     the independent music capabilities                  vital role a record label performs
     from Universal Music across all of its              today. “You can reduce it to the
     business units and regions.                         fundamentals: does an artist need
                                                         a team to succeed? Most people
     “If you're an artist that knows what you            would say, ‘Yes’. What does the team
     want to do with your campaign, you                  look like? Does it have people who
     know who you are as an artist, but you              understand music? Does it have
     still can't cover all the ground yourself           people who understand the creative
     – you come to us. It’s just too much                process? Does it have people who           We’ve put tremendous
     for any single individual. You can't be             understand the platforms? Does the
     your own promotion and marketer,                    team also have the ability to create       effort into getting the
     radio and TV plugger - you can't be                 and execute a marketing plan for you,      best team on board to
     everything all at once – especially if              not just in your region, but globally?     manage each project.”
     you want to do it everywhere all at
                                                                                                    MARIE-ANNE ROBERT
     once."
                                                                                                    Managing Director,
                                                                                                    Sony Music France                     Tom Odell photo by Rory Langdon Down
22   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                                   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY       23

     A&R: DISCOVERING AND
                                                                                                                 Jean-Sebastien Permal, VP for             “I think that in the second that
                                                                                                                 A&R, Continental Europe and               you consider signing an artist, you

     DEVELOPING ARTISTS AND
                                                                                                                 Africa, Sony Music Entertainment,         should know the road to finding their
                                                                                                                 discusses artist development as           audience.”
                                                                                                                 the ultimate partnership between
                                                                                                                 record company and artist – and also      “THE REALITY IS, WE HAD TO

     THEIR MUSIC IN 2023
                                                                                                                 stresses the pervasive importance         DO THE SAME JOB AS WE DO
                                                                                                                 of long-term thinking. He says: “A        WITH EVERY ARTIST, WHICH IS
                                                                                                                 successful artist and A&R relationship    THE JOB WE’RE HERE TO DO:
                                                                                                                                                           DEVELOP THEM, BE PATIENT,
                                                                                                                 starts with a mutual understanding
                                                                                                                                                           THINK LONG-TERM.”
                                                                                                                 of what we are trying to accomplish
                                                                                                                 from the get-go.                          The single biggest shift in A&R has
                                                                                                                                                           been in how and where artists are
                                                                                                                 “That's why we like to have in-depth      discovered. In some instances, artists
                                                                                                                 conversations and ensure we have the      can be seen and known around the
                                                                                                                 same understanding and chemistry          world in days based on a single track
                                                                                                                 with an artist and their teams right at   or a short-form video measured in
                                                                                                                 the start. Because our job is to work     seconds rather than minutes.
                                                                                                                 for the artist, and we can only do that
                                                                                                                                                                                                                                                                   Angele photo by Manuel Obadia-Wills
                                                                                                                 when we understand who they are           For record companies though, this is
                                                                                                                 and where they want to go.                still the starting point of a much longer
     At the core of a record company’s DNA remains artist                                                                                                  game. Nick Burgess, Co-President            who wants to listen to 15 seconds of a        globally to amplify them and take
     and repertoire (A&R) – the discovery and development                                                        “Once an artist has signed to us, they    of Parlophone UK, recounts the story        Whitney Houston cover. The journey            things to next level.”
                                                                                                                 entrust us with their career, with        of breaking Sam Ryder [see full Case        from TikTok to sustained streaming
     of artists and their creative vision. The processes,                                                        their life goal and our job is to fight   Study on page 24]. Sam had blown            success is complex and nuanced.               Access to these global networks also
     platforms and skills involved in A&R continue to evolve                                                     for that goal as hard as they do. And     up on TikTok, and Burgess says that         Huge swathes of fans don’t just jump          facilitates artists with the potential to
     and expand, albeit with recognisable fundamental                                                            to adapt to them, because we are          was how he first came to the label’s        across from one platform to another.          create cross-cultural collaborations.
                                                                                                                 here to service them, not the other       attention. But that wasn’t why he was                                                     This in turn can help domestic artists
     roots which still show through.                                                                             way around. We want artists to know       signed.                                     “The reality was that we had to do the        reach wider global audiences. Bello
                                                                                                                 that about us, even before they sign.”                                                same job as we do with every artist:          continues, “We have a broad network
                                                             Rouge photo courtesy of Warner Music South Africa                                                                                         develop them, be patient, think long-         of artists, producers and writers
                                                                                                                 He also outlines the strengths of a                                                   term. We had to build Sam’s career            around the world to draw from,
                                                                                                                 record company when faced with                                                        and this whole project as organically         which helps an artist find the right
                                                                                                                 the sheer volume of music being                                                       and authentically as we would with            connections. Our A&R team will work
                                                                                                                 uploaded daily across streaming             I think that in the second                any other artist.”                            with an artist to come up with an idea
                                                                                                                 platforms. “The need to grasp the           that you consider signing                                                               to collaborate to help increase their
                                                                                                                 attention of audiences is incredibly        an artist, you should                     Kabiru Bello, VP, Global A&R,                 audience and global exposure.
                                                                                                                 challenging and that’s where the value                                                Warner Music Group, links back to
                                                                                                                 of a record label comes into play,          know the road to finding                  a wider point about the increasing            “Of course, that relationship has
                                                                                                                 because we help artists cut through         their audience.”                          strength of homegrown talents – and           to be authentic, and we approach
                                                                                                                 that noise using our expertise and all      KONRAD VON LÖHNEYSEN                      how a connected, global company               each collaboration case-by-case. A
                                                                                                                 the tools at our disposal.”                 Managing Director,                        can make a difference to an artist or         good example of Latin and European
                                                                                                                                                             Embassy of Music                          track with unrivalled speed and scale.        music working together is the track
                                                                                                                 An integral piece of what record                                                                                                    Dancarina, a collaboration between
                                                                                                                 companies offer, in terms of                                                          “There’s been a huge shift with local         two Latin artists, Anitta and Pedro
                                                                                                                 discovering and positioning new           He says, “We’re not a label that signs      music having significant impact in            Sampaio, and the French artist Dadju.
                                                                                                                 artists, is still the experience and      TikTok cover version artists. We set        domestic markets. It’s something to           It was the first collaboration between
                                                                                                                 expertise of the A&R team.                up some studio sessions and we              which we pay close attention and              French and Brazilian artists that did
                                                                                                                                                           signed Sam because we could see             share with our A&Rs around the                well here and reached the Top 10 in
                                                                                                                 Konrad von Löhneysen, Managing            he had star quality and that he’d built     world. As a team, we participate in           France and #1 on the French Airplay
                                                                                                                 Director, Embassy of Music, explains,     a connection with his audience, but         A&R meetings across the regions               chart.”
                                                                                                                 “That side of what we do as an A&R        then you add in the song-writing skill      to know what they have and are
                                                                                                                 department has never changed              that became so evident early on,            looking for in terms of artists, songs,       Permal agrees, “As a company we
                                                                                                                 when we are discovering new artists.      we just thought, this is what we’re         collaborations, and this way our A&Rs         try to bring our artists together.
                                                                                                                 Right from the start we have to ask       in business to do: sign and develop         around the globe stay connected to            For example, if one of our German
                                                                                                                 ourselves – ‘What do you hear in          artists like Sam.”                          build bridges for our artists.                or Nigerian artists goes to Paris, we
                                                                                                                 the music? What do you see in the                                                                                                   want them to meet our French artists
                                                                                                                 artist? What is the special position      The pre-existence of a large Tik-Tok        “My strategy is to be the global bridge       or producers because you never
                                                                                                                 this will have in the market and who is   audience played very little part in         for our A&Rs, where I want to keep            know what could come out of that
                                                                                                                 supposed to listen to it? Where can       that development, “Someone who              them very close and make sure we              partnership.”
                                                                                                                 this artist go?’                          loves a song and wants to listen to         catch the momentum with ideas,
                                                                                                                                                           it 100 times is not the same person         to act fast and activate our teams
24   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                          IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   25

                                                                                              The common perception is that his rise was built around              to the people who were actually interested in Sam as an artist.
                                                                                              two things: TikTok and the Eurovision Song Contest (Sam              It was a fraction of his TikTok following, but they were true fans.
                                                                                              came second in 2022, with Space Man, losing thanks to an
                                                                                              overwhelming public vote for Ukraine’s winning entry).               “The reality was, we couldn’t just convert that audience, we had
                                                                                                                                                                   to do the same job as we do with every artist, which is the job
                                                                                              Nick Burgess and Mark Mitchell, co-presidents of his record          we’re here to do: develop them, be patient, think long-term.”
                                                                                              company, Parlophone, know that the real story is rather
                                                                                              different.                                                           Burgess agrees, “We had to build Sam and this whole project as
                                                                                                                                                                   organically and authentically as we would with any other artist.
                                                                                              Burgess says, “Sam did come to our attention via TikTok. And         When the mainstream media did start to engage, they would
                                                                                              I thought, yes, great voice, great personality, interesting artist   quite often refer to him as a ‘TikTok sensation’, and that was
                                                                                              proposition, but we’re not a label that signs TikTok cover           something we have to fight against rather than encourage. We
                                                                                              version artists.”                                                    didn’t want that notion to define or overshadow him.

                                                                                              He saw enough potential, however, to “get him in a studio, see if    “And then, out of the blue, we got a call asking if Sam would do
                                                                                              he’s got the writing chops” that would make the difference and       Eurovision. My initial reaction was, ‘Hmmm, I don’t know…’ But
                                                                                              seal the deal. Parlophone set up sessions with Amy Wadge and         then you look at Måneskin’s success the year before; it can be
                                                                                              Max Wolfgang – and the first track to emerge was Space Man.          a jumping off point for a global rock act, so why not? The key
                                                                                                                                                                   thing is, they wanted Space Man. If it hadn’t been about the
                                                                                              “We signed Sam because we could see he had star quality and          song and Sam we’d have said no.
                                                                                              that he’d built a connection with his audience, but then you add
                                                                                              in the song-writing skill that became so evident so early on and     “Also, the thing is, we’d sit in meetings and say, ‘We just need
                                                                                              we just thought, this is what we’re in business to do: sign and      to get him in people’s living rooms, he’ll take it from there’.
                                                                                              develop artists like Sam.”                                                                Because we’d got to know him by then, we
                                                                                                                                                                                        knew what a fantastic personality he had,
                                                                                              The first big decision was to avoid the                                                   how likeable he is, how positive he is; we
                                                                                              obvious route of releasing Space Man.                                                     knew, given half a chance, the British public

                                                             Sam Ryder photo by Edward Cook
                                                                                              Mitchell explains: “There was the possibility                                             would fall in love with him – and they did.”
                                                                                              that it would have caught fire and almost          We had to do the same
                                                                                              run away from us, so that the song actually                                              The day after Eurovision, Mitchell recalls,
                                                                                              eclipses the artist, and that’s not ideal
                                                                                                                                                 job as we do with every               “there was obviously a sense of elation –
                                                                                              when you’re looking at long-term career            artist, which is the job              the event had been brilliant and Sam had
                                                                                              development.”                                      we’re here to do: develop             been as great, but straight away we had
                                                                                                                                                                                       to build on it, carry on the momentum.
                                                                                              Burgess continues, “It helped that Sam was
                                                                                                                                                 them, be patient, think               We didn’t want Sam to now become ‘the
                                                                                              now writing more really beautiful songs, so        long-term.”                           Eurovision guy’.”

     SAM RYDER
                                                                                              we could put a handful of them out first,      MARK MITCHELL
       ↓ CASE STUDY                                                                           as singles and on EPs, to start building his   Co-President, Parlophone Records       It was decided an album needed to come
                                                                                              story. We wanted to let people discover                                               out before Christmas, with Burgess working
                                                                                              Sam, his voice, his personality etc. in a more                                        closely alongside Sam and his team to meet
                                                                                              gentle way rather than maybe have one track dominate and           the deadline. “We knew he was no one-hit wonder and we
                                                                                              overwhelm him.”                                                    wanted to prove it as quickly as possible.

                                                                                              Throughout the process, harnessing and interacting with the          “It was a very intense period. Sam is very exact, he doesn’t just
                                                                                              TikTok audience was in the mix, but wasn’t a central pillar. As      turn up do his vocal and leave, he’s a proper artist involved in
                                                                                              Burgess says, “Someone who loves a song and wants to listen          every step along the way.
                                                                                              to it 100 times is not the same person who wants to listen to 15
                                                                                              seconds of a Whitney Houston cover. The journey from TikTok          “And alongside that, everything the label and Sam did together
                                                                                              to sustained streaming success is complex and nuanced.               in terms of marketing and promotion really nailed his narrative
     Sam Ryder was one of the biggest breakthrough UK                                         Huge swathes of fans don’t jump across from one platform to          – because it was authentic, that’s why he’s so amazing at
     artists in his domestic market in 2022, scoring a                                        another.”                                                            articulating his story, because it’s all Sam. That all helped set the
                                                                                                                                                                   album up as an important debut from a genuinely interesting
     No. 2 single with Space Man and a No. 1 album with                                       Mitchell explains Parlophone’s next steps, “In the background        and exciting new British artist.”
     There’s Nothing But Space, Man.                                                          we set up something called Open Stage - it’s essentially an email
                                                                                              database through which we could start super-serving the most
                                                                                              engaged element of Sam’s TikTok audience. We wanted to talk
26   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                           IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   27

                                                                                                                                                    Selina Webb, EVP, Universal Music        “Hopefully, they will go away with a             Doreen Schimk, Co-President,
                                                                                                                                                    UK, explains, “We are always looking     very clear message: if you need any              Warner Music Central Europe,
                                                                                                                                                    for ways to support our artists and to   help or just a chat, anywhere down the           agrees with this approach to wellness,
                                                                                                                                                    help them be at their creative best.     line…it’s completely confidential, it's          saying: “At Warner Music Central
                                                                                                                                                                                             separate from the labels and it’s always         Europe, we’ve always upheld the
                                                                                                                                                    “Every artist that signs to one of our   on, always there, if anything comes              strong conviction that good mental
                                                                                                                                                    labels has the opportunity to check      up. Because something will come up,              health is paramount for our artists,
                                                                                                                                                    in with a counsellor. Maybe they want    being an artist, being in the public eye,        employees and our community.
                                                                                                                                                    to talk about their relationship with    especially with the pressure of social           For both, we offer comprehensive
                                                                                                                                                    social media, or they might need         media, it’s a challenge.                         measures and services.”
                                                                                                                                                    some additional support with the
                                                                                                                                                    huge pressures which come with just      “And there's also specialised advice             Fabian Drebes, Co-President,
                                                                                                                                                    being an artist - the volume of work,    for staff working with artists. Because          Warner Music Central Europe,
                                                                                                                                                    the intensity of the work, and the       they may want some guidance on how               explains: “We can rely on our
                                                                                                                                                    scrutiny.                                to provide the best support.”                    longstanding collaboration with the
                                                                                                                                                                                                                                              renowned mental and corporate
                                                                                                                                                                                                                                              health specialists at the Fürstenberg
                                                                                                                                                                                                                                              Institut, who’ve made coaching,
                                                                                                                                                                                                                                              counselling and support with a holistic
                                                                                                                                                                                                                                              approach available to our employees,
                                                                                                                                                                                                                                              and now also all to our artists – with
                                                                                                                                                                                                                                              exceptional 24/7 access, and services
                                                                                                                                                                                                                                              in 16 different languages.”

                                                                                                              Alison Wonderland photo by Simply G

     ARTIST WELLBEING
     Record companies are increasingly                   to be an effective partner to our
     looking beyond the creative and                     creative community in the business
     commercial opportunities they can                   as it is today – and in the economic
     offer artists to ensure they provide                realities of today.”                      We are always looking for
     a more holistic package of support.                                                           ways to support our artists
     This includes considering an artist’s               The initiative also focuses on artist
     well-being and mental health.                       wellness. Moultrie continues, “The
                                                                                                   and to help them be at their
                                                         goal with our wellness efforts is         creative best.”
     At Sony Music, this work comes                      really to ensure that our artists feel,   SELINA WEBB
     under the umbrella of their Artists                 as much as possible, that they're in      EVP, Universal Music UK
     Forward initiative. Susan Moultrie,                 a position to be at their very best as
     SVP of Artist Initiatives and Business              they proceed down their creative
     Administration, explains, “We're                    path. As part of this, we provide
     constantly looking for ways that we                 access to counsellors around the
     can support our talent throughout                   world, and they can have sessions
     their careers, and as our industry                  with a licensed therapist, in person or
     continues to evolve and grow, so does               virtual, depending on their need. The
     our work.”                                          program is confidential - we don't
                                                         get any details about the calls or the
     “Our Artists Forward initiative serves              sessions.
     as an additional, but vital, component
     to the traditional roles of finding,                “So if ever one of our creators feels
     nurturing and developing talent.                    that they need to work through
     Key areas that it touches on include                some personal challenges, there's
     earnings enhancements, insight tools                someone they can speak to in that
     and educational resources. We want                  moment.”
                                                                                                                                                                                                                                         Paul Partohap photo by Habibie Eka Perdhana
NEWDISCOVERING
 28

     OPPORTUNITI       E S
      IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY

                 NEW
                                                                                                     “Another area to consider is health
                                                                                                     and wellness. There’s a tremendous
                                                                                                                                                                                      IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY       29

NEWOPPORTUNI         T IE S
                                                                                                     opportunity there. Digital fitness is
                                                                                                     really just the tip of the spear.

    OPPORTUNITIES
                                                                                                     “And our experience has been that
                                                                                                     the artists love being engaged in this
                                                                                                     area, they’re passionate about it.
                                                                                                     Because music effects everyone’s
                                                                                                     lives; it makes the world a better

    FOR ARTISTS AND TIES
NEWOPPORTUNI
                                                                                                     place. The potential to harness music
                                                                                                     in this space is incredible, and the
                                                                                                     artist community is very invested in
                                                                                                     that.

                                                                                                     “Finally, there are the new frontiers
                                                                                                     of Web3 and the metaverse. These
                                                                                                     are longer-term opportunities which

NEWOPPORTUNITIES
    THEIR MUSIC
                                                                                                                                                                                                    Aimyon photo courtesy of Warner Music Group
                                                                                                     are developing over the coming years.
                                                                                                     Web3 is going to enable new forms of
                                                                                                     digital collectibles, the management       ‘ONE OF THE KEY ROLES THAT                    are a key part of engagement and
                                                                                                     and gating of live experiences, the        WE CAN PLAY IN SUPPORTING                     conversations that happen in many
                                                                                                     authentication of the super-fan            WHAT OUR ARTISTS WANT TO                      new music experiences, and they’re
                                                                                                     relationship; a lot of very interesting    DO, IS TO GIVE THEM AS MANY                   also important drivers of new
                                                                                                                                                OPTIONS AS POSSIBLE’
                                                                                                     things are going to happen there.”                                                       commerce opportunities for artists.”
                                                                                                                                                Angela Lopes, SVP, Strategy

NEWOPPORTUNITIES
                                                                                                     In order to help artists to capitalise     & Investments, Sony Music                     Lopes says that across their strategies
                                                                                                     on the growing array of opportunities      Entertainment, points out that                and investments, record companies
                                                                                                     in these new technology categories,        record companies are able to identify         ultimately provide artists with more
                                                                                                     Dennis Kooker, President, Global           and support new opportunities                 choice of partners, services and
      Record companies today are increasingly focused on                                             Digital Business, Sony Music               for artists through their forward-            solutions, plus greater bandwidth to
      helping to discover new opportunities for their artists to                                     Entertainment, explains that record        looking strategies and investments.           create.
      connect with their fans. Their music remains at the heart                                      companies are focused on building          “We have teams around the world

NEWOPPORTUNITIES
      of this whilst the opportunities themselves expand into                                        the necessary infrastructure and           that continually monitor what's               She concludes, “One of the key roles
      increasingly diverse areas.                                                                    scale around the music experiences.        going on in different markets. They           that we can play in supporting what
                                                                                                     This includes creating strategies          are dedicated to looking at the               our artists want to do, is to give them
      Looking top-down at the landscape today, Michael Nash,                                         and partnerships that support the          innovative technologies and business          as many options as possible, while
      EVP, Chief Digital Officer, Universal Music Group sees four                                    creative and commercial success of         models that are coming up through             also de-risking those options for
      main areas. “Social media, broadly defined, that continues                                     artists, and investing in the systems      the start-up community to identify            them as much as possible, whether
      to be the big prize in terms of opportunity.                                                   to enable more creators to engage          ways in which we can enhance those            through developed expertise, better
                                                                                                     with new platforms whilst tracking         opportunities to support our artists.”        economics or data insights.”

NEWOPPORTUNITIES
      “There’s a constant evolution of platforms and we’re                                           and understanding the impact they
      making a persistent push to ensure that our artists are fully                                  are having.                                She notes that GenZ is a key
      participating in the value that they’re creating on these                                                                                 demographic of focus as record
      platforms – economically – and accessing new ways to                                           “In all of these new areas, we want        companies look to build out future
      better connect with their fans.                                                                to do more than just react to the          opportunities and experiences for
                                                                                                     opportunity. We work with tech             artists. “We're seeing Gen Z want               We think a lot about how
      “Then there are opportunities to engage with ‘super-                                           and gaming companies to create             to embrace new ways of engaging
                                                                                                                                                                                                to help artists enhance

NEWOPPORTUNITIES
      fans’. We see the opportunity with the devotion to vinyl.                                      the right environment and develop          with artists. There continues to be a
      Very often it isn’t making it out of its shrink wrap. It’s less                                business models and solutions that         greater shift towards next generation           their direct-to-fan
      about how it sounds than about fans longing for a deeper                                       benefit as many of our artists as          platforms, and we are seeing a                  relationships.”
      connection with artists and we think growth in vinyl suggest                                   possible both now and in the future.       rise in revenue streams from new
                                                                                                                                                                                                ANGELA LOPES
      a bigger opportunity with a variety of different products and                                  To deliver across our roster in a          categories.”                                    SVP, Strategy & Investments,
      propositions offered directly to them by the record labels,                                    more scalable way, we do our due                                                           Sony Music
      on behalf of the artists.                                                                      diligence when forging relationships       Fan communities also are playing an
                                                                                                     with new partners, build out teams         increasingly important role in evolving
                                                                                                     with the right skillset, and build back-   music experiences, she says. “We
                                                                                                     end data and analytics reporting to        think a lot about how to help
                                                                                                     judge whether collaborations are           artists enhance their direct-to-
                                                                                                     successful.”                               fan relationships. Fan communities

                                                         Sebastian Yatra photo by Erick Quituizaca
30   IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY                                                                                                                                                                  IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY   31

     “WE'VE BUILT A GLOBAL TEAM                          of those things and to help guide        that maybe are just starting out in      of an artist’s career, it used to be that
     OF PEOPLE TO HELP GUIDE                             our artists through an increasingly      their careers.”                          you could rely fully on your recorded
     OUR ARTISTS THROUGH AN                              complicated landscape.”                                                           music and touring as your revenue
     INCREASINGLY COMPLICATED                                                                     She highlights the impact the            streams. In today’s world there are
     LANDSCAPE.”
                                                         Naomi McMahon, SVP, Head                 pandemic had on brand partnerships.      huge benefits in having a much more
     Bob Workman, SVP, International                     Strategic Marketing & Partnerships,      “Live [music] was cut off as an avenue   diversified pie chart, and brand and
     Brand Partnerships, Warner Music                    Universal Music Group, gives some        and the value of brand partnerships as   merchandise is a huge part of that.”
     and General Manager, WMX UK,                        insight into her department’s reach      a way to engage with fans catapulted.”
     emphasises the importance of                        and infrastructure. She says, “We                                                 That’s why, Scoffern says, music
     tailoring new opportunities around                  have people operating across 40          The attraction for brands themselves,    companies today are focused on
     individual artists – something that can             markets-with a global focus on brand     meanwhile, remains the same – only       how merch opportunities fit into the
     only be achieved by having interests                partnerships-and we have initiated       stronger. “They understand the value     larger equation of an artist’s career,
     and expertise in a broad spectrum of                more than 200 programs in the past       of authentically connecting with         and is why they look to ensure that
     developing sectors.                                 year alone.                              audiences. Music is the number one       authenticity and the artist’s vision
                                                                                                  passion point, right? It's the most      is front and centre in products and
     He says, “Our artists have a wide                                                            powerful way for them to reach           branding.
     palette of interests, passions, and                                                          audiences and fans.
     skill sets, and that's reflected in                                                                                                   He continues, “We strive to have
     the audience as well. We are there                                                           “We sit alongside that, really           very deep relationships with the
     to help our artists and their music,                    We are there to help                 understanding what those brand           leadership of labels, in addition to
     and ensure their creativity is heard,                   our artists and their                partners are doing in music and what     close relationships with artists and
     seen and consumed in many more                                                               they want to achieve. Then creating      their management. The sooner we can
     settings than it would have done
                                                             music, and ensure their              opportunities for our artists that are   work with an artist and align on what
     previously. We see this as critical                     creativity is heard,                 mutually beneficial.                     their identity is and start consistently
     and have worked to ensure that we                       seen and consumed in                                                          communicating it on merchandise, on
     have the global expertise, scale and                                                         “What’s great is that alongside this     their website, on socials and so on,
     relationships to be able to do that.
                                                             many more settings                   engagement from brands, we've            the more successful the partnership
                                                             than it would have done              seen artists leaning in in ways that     will be.
     “That's where, certainly within the                     previously."                         they may have been reluctant to do
     field of brand partnerships, there's                                                         so before, maybe because it was seen     “There has to be a creative vision that
                                                             BOB WORKMAN
     lots of opportunity. We’re often                        SVP, International Brand             as a distraction, or the return wasn't   runs through everything associated
     engaged in an area or activity that                     Partnerships, Warner Music           there. Now we're really seeing huge      with an artist’s brand identity - the
                                                                                                                                                                                                                                                       Lil Nas X photo by Kaito
     might not be fundamentally about                        and General Manager, WMX UK          value when both parties come to the      logo, the touring branding, the single
     the music. It might be a fashion                                                             table and understand creatively and      artwork, the album artwork, what the
     collaboration, or it might be a values                                                       commercially what we're trying to        artist is wearing. It's beneficial for                                                   “It’s a partnership model. We mostly
     proposition, such as gender equality,               “The focus is very much on creating      achieve.”                                artists if there's consistency running                                                   drive the ideas, but either side of that,
     or sustainability, or the environment.              broader strategic partnerships that                                               through all of that.”                                                                    at the planning stage, we make sure
                                                         our artists and labels can benefit       She concludes, “I feel like we’re                                                                                                 we understand who the artist is, what
     “There are more lanes to operate                    from, but then also going in on a        drawing new maps right now. I love       Healy points to the company’s work            The focus is very much                     they want to do, what sort of partners
     in than ever and we've built a global               domestic level to create local impact,   how what we do is becoming part of       with Columbia Records artist Dominic                                                     they’re interested in, and then at the
                                                                                                                                                                                         on creating broader
     team of people to be super-aware                    which is important for those artists     the norm and that there has been         Fike as an example of developing                                                         other end they ultimately say ‘yes’ or
                                                                                                  this natural integration of these non-   merch opportunities with an artist’s          strategic partnerships                     ‘no’ to everything.
                                                                                                  traditional revenue streams into the     vision. “One of the things that he said       that our artists and
                                                                                                  mainstream commercial picture.”          in the first meeting was ‘nobody really                                                  “We work with 400 licensing partners
                                                                                                                                                                                         labels can benefit from.”
                                                                                                                                           needs another T-shirt.’ Sustainability                                                   and sell to around 200 different
                                                                                                  At Sony Music, global branding and       is what’s key to him. So he came up           NAOMI MCMAHON                              retailers with more than 60,000
                                                                                                                                                                                         SVP, Head Strategic
                                                                                                  design agency Ceremony of Roses          with an idea to do some upcycling,                                                       individual stores worldwide, from
                                                                                                                                                                                         Marketing & Partnerships,
                                                                                                  works with the artist community to       and Ceremony of Roses acquired                Universal Music Group                      the likes of Sweden’s H&M, through
                                                                                                  provide merchandise development          vintage t-shirts and screen printed                                                      Hot Topic from the US, to Australia’s
                                                                                                  and services.                            over them with Dom’s new art. The                                                        Cotton On. The great thing for artists
                                                                                                                                           result was a more sustainable and           Chris Onyekweli, High Street Retail          is that they can just plug into that
                                                                                                  Brad Scoffern, Founder & CEO,            unique item for his fans.”                  Account Director, Warner Music,              ecosystem.”
                                                                                                  Ceremony of Roses says that retail                                                   says: “We want to try and be involved
                                                                                                  and merchandise operates as an            She adds, “We really want artists          with the artists right from the start,       “And then there’s a sales team that
                                                                                                  increasingly important extension of      that we work with to feel like we're a      so we can educate and strategise with        focuses heavily on maximising all
                                                                                                  an artist’s brand and creates another    creative partner, not a vendor. I think     them. And, of course, the bottom             opportunities. We deal with the
                                                                                                  way to connect even further with a       that's the hallmark of our relationship     line is that the artist gets approval        logistics, the paperwork – and since
                                                                                                  global fanbase.                          with our roster. We're not just             on everything they do; they're in full       Brexit that’s become so much more
                                                                                                                                           a transactional ‘one and done’.             control.                                     complicated. That’s all there for them
                                                                                                  Chief Business Officer at Ceremony       We really build and work with them                                                       and taken care of for them, by best-
                                                                                                  of Roses, Mary Healy, explains, “I       365 days a year.”                                                                        in-class teams.”
                                                                                                  think when you look at the pie chart
     Lizzo photo by Luke Gilford
You can also read