MusicDish e-Journal - November 25, 2017
MusicDish Advertising Network
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Recorded Music - Driver Of A US$100 Billion Economic Sector
By Mi2N
(more articles from this author)
Comment | Email | Print | RSS

The recorded music industry is the engine helping to drive a much broader music sector, from subscription radio stations to mobile ringtone sales, which is worth more than US$100 billion globally. This is over three times the value of the recorded music market, and shows music to have an economic importance that extends far beyond the scope of record sales.

Global retail sales of recorded music totalled US$33 billion in 2005. However, that market is helping to drive a much larger and more diverse commercial music sector. This includes live performance, online and high street retailers, ringtone vendors, audio equipment manufacturers, radio advertising revenues, performance rights collections, music magazine revenues, radio subscriptions, portable digital music players and music publishing revenues.

Music is also becoming an increasingly important economic driver in the digital era. The US$100 billion figure excludes the impact of the recording industry on fast-growing sectors such as Internet Service Providers and mobile phone operators.

This is a valuable global industry that is a catalyst for a wide range of commercial uses of music, and which has been created without subsidy or special measures. The recording industry is the principal investor in music talent and invests more than 17 per cent of its revenues on the search for and development of new artists.

Estimating the value of the wider music economy

The largest sector underpinned by recorded music, after sales of physical recordings, is the global commercial radio advertising market, which is worth US$30 billion a year. Record companies provide the radio stations with the content they need to attract the audience that advertisers want to reach.

Live performance is also a fast-growing area, worth US$14 billion in 2005.

Music is also helping drive the growth of radio subscriptions in the United States. Satellite radio is one of the fastest growth sectors in music (growing 144% in 2005), second only to digital sales of recordings. Two major providers, XM and Sirius, are offering advertising-free services to more than 10.6 million subscribers (May 2006).

Nothing illustrates the importance of recorded music to other sectors more than the phenomenal growth in portable digital music players. IFPI estimates the value of this sector to be US$9 billion in 2005 - over four times the estimated value of digital music retail sales. In addition, the market for peripheral equipment such as speaker systems and docking stations is estimated to be worth US$1 billion by industry analysts. With digital player penetration at 15 per cent of online users in Europe and 20 per cent in the US, along with a high replacement rate, this market has further exciting growth potential.

In addition to the sectors mentioned above, recorded music is also one of the main drivers of the rapidly-growing digital economy. IFPI estimates that consumers spent over US$75 billion on broadband subscriptions and US$60 billion on mobile data services in 2005*.

Music has been a key driver of 3G mobile services - research from the mobile operators confirms music is the top entertainment product on mobile phones, attracting the 18-35 age group in particular.

Music is central to the marketing strategies of these new media service providers, and is seen as the leading source of entertainment content by a large contingent of major new media brands including Yahoo, America Online and MSN.

Music is one of the leading creative industries driving the media and entertainment sector that now accounts for more than seven per cent of global GDP and a worth an estimated US $1.3 trillion - with experts predicting this figure will grow to US $1.8 trillion by 2009 (Source: PWC).

Related News from Mi2N:
» Recorded Music - Driver Of A US$100 Billion Economic Sector

Home » News Beat » Recorded Music - Driver Of A US$100 Billion Economic Sector
Email |Print |Comment |RSS

back | top

MusicDish Advertising Network

News Beat

» Nordic & British Musicians' Unions' Joint Statement on Sexism in the Music Industry

» Women Make An Impact On The 2018 MPG Awards Shortlist

» Two-Sides of Copyright Finance: Sound Royalties & Kobalt

» Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes

» Europe's Digital Music Leaders Form Alliance

News Beat Directory

» [2017-11-21] Joint Statement By The Nordic Musicians' Unions And British Musicians' Union; Discussions On The Issue Of Gender Inequality, Sexism And Sexual Harassment, The Scale Of Which Had Been Highlighted By The Recent #metoo Campaign

» [2017-11-13] Women Make An Impact On The 2018 MPG Awards Shortlist; Nearly A Quarter Of Those Named This Year Are Female, Proving That Music Production Is No Longer A Bastion For The Boys

» [2017-11-13] The Nashville Musicians Sound Healthcare Plan Rolls Out; Sound Healthcare & Financial Announced The Formation Of A True Group Health Insurance Policy Plan For Musicians And Industry Professionals

» [2017-11-09] Streaming & Listening Diversity - Spotify Case Study; Will Artists Have An Easier Time Finding An Audience, Or Will Streaming Focus Global Attention On A Small Number Of Stars?

» [2017-11-09] Two-Sides Of Copyright Finance: Sound Royalties & Kobalt; Sound Royalties Unearths Millions In Undistributed Royalties While Kobalt Launches Fund To Invest In Music Copyright

» [2017-11-08] Career Moves: ROLI, Live Nation Sweden, Music Glue, BBR Music Group, Warner/Chappell Music Spain & Blue Night Soundscapes; ROLI Chief Creative Officer, Live Nation Sweden Managing Directors, Music Glue Global Head Of Business Development, BBR Music Group VP Of International, Warner/Chappell Music Spain Managing Director And Blue Night Director Of Music Clearance

» [2017-11-08] Europe's Digital Music Leaders Form Alliance; European Digital Music Companies Launch Of Digital Music Europe

» [2017-11-05] Pandora Subscriber Base Grows To Over 5 Million; Pandora Premium Paid Subscribers Cross The 1 Million Milestone In October 2017

» [2017-11-05] Hybrid Studios Announces Online Mastering Services; Engineers Billy Klein And Brian Frederick Spearhead New Online Mastering Effort Through OC Studio

» [2017-11-05] Music Industry Betting On VR & AR For New Revenue; The Music Industry Is Making An Early Bet On VR & AR To Create New Revenue Streams Across All Their Lines Of Business

» [2017-11-04] Sound Royalties Unearths Millions In Undistributed Royalties; Nearly $14 Million In Undistributed Royalties Has Been Found By Music-focused Finance Firm Sound Royalties

» [2017-11-02] MusicDish*China October China Label Music Releases And Charts; Several Tracks From October Releases Have Charted On Chinese Music Portal Kanjian ING Top 10 Weekly Chart
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Hybrid Studios To Sponsor Unsigned Only 2018

Twice The Holiday Feel-Good Vibe From NYC Indie Rockers

LOVE MY COUNTRY! Is The Ultimate Compilation Series Featuring 20 Hot New Hits

Getting Restless

Your Favorite Color Releases "Heartache"

Melvin Alan Album "Wonderful Life"

Jean Louisa Kelly Presents A Personal Collection Of Songs From The American Standards And Musical Theater

Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2017 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships