Global Music Production and Distribution Industry Market Research Report from IBISWorld Has Been Updated
Revenue in the Global Music Production and Distribution industry fell over the five years to 2013 because many of the industry’s largest companies have failed to leverage a crop of potential new revenue streams to compensate for the extreme drop in physical album sales over the past five years; unfortunately, over the five years to 2018, industry revenue is expected to continue contracting. For these reasons, industry research firm IBISWorld has updated a report on the Global Music Production and Distribution industry to its growing report collection.
Los Angeles, CA (PRWEB) May 19, 2013
The digital revolution has created a seismic shift in the way the world consumes music, and this transition has been largely detrimental to the Global Music Production and Distribution industry. Over the five years to 2013, industry revenue is expected to fall at an annualized rate of 5.8% to $27.6 billion, including an expected 5.2% drop during 2013. “In general, many of the industry’s largest companies have failed to leverage a crop of potential new revenue streams to properly compensate for the extreme drop in physical album sales over the past five years,” IBISWorld industry analyst Antonio Danova says.
Music buyers today have many avenues to consume new music content. Previously, music production and distribution was shaped primarily by the recording of physical albums or singles, with buyers, in turn, purchasing these products in brick and mortar retail outlets. “In today’s environment, digital streaming service sites like Spotify, SoundCloud and Bandcamp, allow artists to post new music on their own and choose whether to charge listeners for it,” Danova says. This has enabled artists to circumvent traditional music distributors. However, increased exposure from these new music channels has benefited record labels’ music publishing divisions.
In music publishing, producers, who own the rights to the master recordings, license out song use on these streaming sites and other commercial interests such as advertising. This has buoyed revenue slightly over the past five years, but has not been enough to help the industry’s largest firms recover from massive album sales slumps. The industry´s largest companies currently include: Vivendi (which owns Universal Music), Sony Entertainment (once a joint venture by Sony and German entertainment giant, Bertelsmann AG, known as Sony BMG, now owned wholly by Sony), and Time Warner (which owns Warner Music). Also, Universal Music recently acquired EMI. Overall, the Global Music Production and Distribution industry carries a moderate market share concentration level.
Over the five years to 2018, industry revenue is expected to continue contracting. Music companies have been slow to come to the digital table, and their performance over the next five years hinges on their ability to embrace new technology. The music market has changed significantly and the largest record labels must adapt to this new environment. Vivendi and its subsidiary Universal Music Group, have already made strides to improve. In September 2012, the US Federal Trade Commission and European Commission approved Universal’s bid to take over EMI’s music production division. This move illustrates a significant effort by the industry’s largest firm to revive its performance and have a greater presence over the current music production landscape. For more information, visit IBISWorld´s Global Music Production and Distribution industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry, known as record labels, find musicians and artists, oversee the recording of their work, and promote and distribute this music to retail outlets. The industry also includes music publishing, which involves the leasing of music as intellectual property for use beyond live performance, such as in advertising or on the radio.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10746628.htm