Recorded Music Market 2017 Streaming Accelerating Growth

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The 20,000 Foot View:  Recorded music revenues are booming and the distribution end of the value chain is both vibrant and competitive. This has not been the case for many, many years. Streaming is on course to become the main revenue source, while the slowdown in legacy format decline is enabling that growth to lift the overall market at a greater rate. The big record companies retain their dominant market positions, but, just as on the distribution side of the equation, the rights side of the recorded music market is undergoing transformation, with artists going direct the big revenue trend to surface in 2017.

Key Findings

• Global recorded music revenues reached        billion, up        billion from 2016
• Streaming was the key driver of growth, up        year on year to reach        billion
• Legacy formats (physical and downloads) were down        million; this was less than        million lost in 2016
• Label revenue from performance royalties and synchronisation reached        billion in 2017, representing        of the total
• Universal Music remained the largest label group in 2017 with annual revenues of        followed by Sony Music        and Warner Music       
• Warner Music was the fastest growing major with        annual growth, though Universal Music added the most revenue in absolute terms 
• Independent labels had another strong year, growing by        to reach        million
• Artists direct (i.e. artists without labels) were the biggest gainers in 2017, growing by        to reach        million,
• Artists direct increased its market share from        (2015) to to        (2017) while Warner Music increased its share from        in 2015 to        in 2017
• Artists direct and independents combined represented        of all revenues in 2017

Companies and brands mentioned in this report: Amazon, Apple, Apple Music, Bandcamp, Believe Digital, CD Baby, Cooking Vinyl, Deezer, Napster, Sony Music, Spotify, Tunecore, Universal Music Group, Warner Music Group