Global Music Distribution A Buyer’s Market
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The 20,000 Foot View: The internet was supposed to be the great leveller, enabling smaller artists and labels to reach global audiences in a way not previously possible. But, it turns out that getting music to these global fan bases is not quite so straightforward. Smaller labels simply do not have the resources to enable them to distribute music across all territories. In fact, the compulsion to reach more markets actually increased the need for global capabilities not reduced it. The solution to emerge was third party distribution companies that are now a crucial part of the business of most independent labels. The majors were quick to recognise the opportunity and establish themselves as central players in this fast-growing sector.
Key Findings
- Global distributed revenue was million in 2017, of all recorded music revenues up from million the prior
- The market highly competitive with more than or labels acting as distributors other labels
- Standard digital fees average around of gross, physical averages around
- However, pricing significantly, with fees paid ranging as low as to as as
- Major labels for of distribution revenue
- The independently distributor market was worth million 2017
- As Merlin scale more labels will be for digital supply chain services than full suite digital distribution
- Streaming services likely start striking more direct with independent labels, especially those distributed via major labels or owned companies
Companies and brands mentioned in this report: AWA, Beggars Group, Believe Digital, Big Machine, CD Baby, Consolidated Independent, Ditto, FUGA, Kontor New Media, InGrooves, Merlin, PIAS, Sony Music, Spotify, The Orchard, Tunecore, Universal Music, Vivendi, Warner Music