The global music market grew 18.5% in 2021, with Latin America at the helm

Judith Mora London, 22 Mar The world music market grew by a record 18.5% in 2021, driven by streaming, with Latin America being “one of the regions with the most potential,” said the International Federation of the Phonographic Industry (IFPI) on Tuesday. IFPI, which brings together major labels, presented its Global Music Report 2022 at the London Soho Hotel, which collects the latest data on sales and consumption of recorded music (not live) in the world. After dedicating a few words of solidarity to Ukraine, CEO Frances Moore revealed that the sector's revenue in 2021, which amounted to $25.9 billion (about 23.47 billion euros), “is the largest ever recorded”, with an expansion in all territories and formats, except that of digital downloads. After the Middle East and North Africa area, which grew by 35%, Latin America, driven by Mexico and Brazil, was the region with the greatest increase in earnings, with an increase of 31.2%, of which 85.9% was due to continuous issuance. “STREAMING” AND LATIN AMERICA, EXPANDING Globally, streaming revenue via paid subscription increased by a significant 21.9%, to 12.3 billion dollars (about 11.148 million euros), with around 523 million users accounted for. The total volume for continuous broadcasts (which includes both paid and ad-financed) rose by 24.3% to 16.9 billion dollars (about 15.32 billion euros), accounting for 65 per cent of the total global revenue of the music sector. Apart from the unstoppable gains from streaming, physical formats expanded by 16.1% in 2021; acting rights contributed 4% more and synchronization (use of music in film or advertising) rose by 22%, while sales through digital downloads fell by only 10.7%, the report states. By region, after the Middle East and North Africa (35%) and Latin America (31.2%), the United States and Canada (22%) led growth, Asia (16.1%); Europe, with 15.4% (spurred by the United Kingdom, Germany and France); Sub-Saharan Africa (9.6%) and Australasia (4.1%). With a global market share of 3.9%, revenues in Latin America increased for the twelfth year, mainly increased by Brazil, which increased by 32%, and Mexico, with 27.7% more, the study reveals. The largest markets are the United States, Japan, the United Kingdom, Germany, France, China, South Korea, Canada, Australia and Italy. ARTISTS AND RECORD LABELS The most popular musicians in 2021 were BTS, Taylor Swift, Adele, Drake, Ed Sheeran, The Weeknd, Billie Eilish, Justin Bieber, Seventeen and Olivia Rodrigo, according to IFPI. Adele's “30” was the best-selling album in all formats, including vinyl, while The Weeknd's single “Save Your Tears” won with 2.15 billion continuous broadcasts, followed by “Stay” by The kid Laroi/Justin Bieber (2.07 billion) and “Levitating” by Dua Lipa (1.88 billion). With the preponderance of the internet, record companies have had to reconsider their role to remain relevant, Moore admitted at the presentation. “The current market is more competitive than ever”, because you can listen to music “in many new and different ways” and “there are no barriers to entry, anyone can record a song and spread it on the net,” he said. But while this creates “huge opportunities for artists,” it is also harder for them to stand out, as more than 60,000 songs are posted on digital platforms every day, the board said. “And this is where record companies play their role,” he said. “When artists partner with a label, they benefit from the support of global teams of skilled and highly responsive experts, who will be dedicated to helping them achieve both creative and commercial success and build long-term careers,” he argued at the event in London. Moore pointed out that record companies must work to discover artists with local roots and continue to invest in technologies that allow them to “improve the experience” of both artists and consumers. CHIEF jm/prc/icn (audio)