State of the independent music economy Fragmentation and consolidation

20,000 foot view

This report presents the results of MIDiA’s annual independent label and distributor survey, as well as the most comprehensive market sizing of the non-major label sector ever conducted. Built on revenue data for 5,500 companies, we present the definitive view of the independent music economy, with market sizing, regional trends, the companies to watch, market drivers, and a view of the forces that are shaping the business of tomorrow. 

This report represents the most comprehensive assessment of the global independent music sector ever done. Through a combination of our annual Independent Label and Distributor Survey and an exhaustive programme of desk research, MIDiA collected revenue data for more than 5,500 companies, totalling $10.6 billion of recorded music revenue. When combined with major label financials and data collected from artist distribution platforms, this means that MIDiA’s total recorded music market dataset has 93% of all global revenues accounted for, at company level. This provides us with a highly robust basis for our market sizing and analysis.

In this report, we provide two different bases for reporting revenue:

1. Distribution basis: This measures the market based upon which label group distributes the music, with portions of independent music appearing within major label market shares. This is the most common method of measuring recorded music market share.
2. Ownership basis: This measure is based upon the label that owns or controls the music, with independent music distributed by majors appearing within non-major market share.

Although the title of this report refers to independent labels (as this is the nomenclature most easily understood by the music industry), throughout this report we refer to independent labels as non-major labels. This is because many of the larger non-major labels are large, corporate entities that are more directly comparable to the Western major labels than they are smaller independent labels. Indeed, the big non-major labels in markets like Japan (e.g., Avex) and South Korea (e.g., HYBE) often consider themselves as majors of their respective markets.

Through a combination of label survey data and market figures, we believe this report provides the definitive view of today’s independent music market.

Key data and insights in this report:

• Strategic priorities for independent labels
• Top distributors used by labels
• Label and distributor attitudes to streaming royalty tiers, 2023 and 2024, global
• Non-major label marketing spend by label size, and marketing spend as a share of revenue
• Non-major recorded music revenue on a distribution and ownership basis, for non-major labels and Artist Direct, global, 2023
• Recorded Music market shares by segment, region and type, 2023
• Distribution of non-major labels by revenue category, 2023, global
• Recorded music revenue on a distribution and ownership basis, by segment, region and type, 2023
• Selected leading record labels by region – North America, Europe, Asia Pacific, Latin America, and Rest of World

This report sources data from:

• MIDiA Research Record Label Market Shares Model 10/24
• MIDiA Research Independent Label and Distributor Survey 2023
• MIDiA Research Independent Label and Distributor Survey 2024
• MIDiA Research Recorded Music market 2023

Table of contents:

Words: 7861

Pages: 33

Infographics: 13

Key insights and about the data in this report

Section 1: Label and distributor survey

Figure 1: Survey respondent strategic snapshot

Figure 2: Changing label perceptions

Figure 3: Non-major label marketing spend by label revenue group

Figure 4, Figure 5, and Figure 6: Analysis of label attitudes to streaming royalty tiers, signing and artist development, and streaming

Figure 7: The fandom and artist development streaming dynamic

Section 2: Market size and shares

Figure 8: Identifying non-major recorded music revenue by segment and type

Figure 9: What does the recorded music market look like?

Figure 10: Recorded music market revenue analysis (2020 - 2023) by segment and type

Figure 11: Understanding the distribution of non-major labels and revenue

Figure 12: Independent label market shares by region

Figure 13: What is the nature of what non-major labels look like and how do they operate in each region?

Implications

Methodology

Companies and brands mentioned:

10K Projects, 300 Entertainment, 88 Rising, ABS-CBN Corporation, ADA, Africori, Alam El Phan, Amazon, Anthem Entertainment, Apple Music, Avex, AWAL, Bandai Namco Holdings, Bandai Namco Music Live, BandLab, Beggars, Blue Raincoat Music, BMG, BMG Production Music, Cadence Music Group, CD Baby, Cloud 9 Recordings, Codiscos Convert Kit, Create Music Group, Dancing Bear Records, DEL Records, Disa Records, Discord, Distrokid, Doğan Music Company, Domino, Downtown Music Group, Edel, Empire, Epidemic Sound, EE-Media, Elencos, FRTYFVE, FUGA, Future Classic, Gallo Record Company, GMM Grammy, Google, Helicon Aroma Music, HIM International Music, HYBE, Hopeless Records, Huan Broadcasting System, Hyperion, INgooves, Instagram, Island Def Jam Music Group, JVCKenwood, JYP Entertainment, Kakao Corp, King Record, KME Corporation, Kobalt, Konami, LabelWorx, Linkfire, Lumbre Music, Magneoton, Mavin Global, Mazzika, Merlin, Meta, MNRK, Mom + Pop, Monstercat, Music for Nations, NetEase Cloud Music, NIKA, Ninja Tune, Nippon Columbia, Openstage, Oriental Star, Partisan, PIAS, Polydor, Pond5, Pony Canyon, Provident Label Group, Rancho Humilde, RED Music, Republic Corps, Rimas, Rotana, Reservoir Media, Secretly Group, SM Entertainment, Som Livre, Songtradr, Sony Music Group, SoundCloud, Space Shower Networks, Spotify, Star Music, Starship Entertainment, Tencent Music Entertainment, TM Production, The Orchard, TikTok, Tradable Bits, TuneCcore, Tunespeak, Twitch, ReverbNation, Universal Music Group, Universal Music Production Music, Victor Entertainment, Virgin Music Group, Warner Chappell Production Music, Warner Music Group, Wavo, WeVerse, WhatsApp, and YouTube