Global music sales grew for the seventh consecutive year in 2021 with recorded music revenues growing in every region and each of the world’s top 10 markets, according to the International Federation of the Phonographic Industry’s (IFPI) “Global Music Report 2022.”
Total revenues climbed to $25.9 billion, a rise of 18.5% on the previous year – the highest growth rate ever recorded by London-based IFPI. Driving the growth was a 21.9% jump in paid streaming subscription revenues, which totaled $12.3 billion, coupled with strong gains in physical record sales — up for the first time in two decades — and performance rights.
Total streaming (including paid subscription and advertising-supported) grew by 24% to $16.9 billion, representing 65% of total global recorded music revenues, up from 62% in 2020.
Revenues from physical format sales were up 16.1% to $5 billion, while performances rights climbed 4% to $2.4 billion, representing 9.4% of global revenues.
IFPI credited the strong rise in physical format sales in 2021 to the recovery of the retail industry, following the previous years near global shutdown as a result of the COVID-19 pandemic.
The only channel to record a decline was downloads and what IFPI class as other digital formats, which fell 10.7% to $839 million, representing just 3.2% of the global market.
“Today’s music market is the most competitive in memory,” said IFPI chief executive Frances Moore announcing the report. “Around the world, record companies are engaging at a very local level, to support music cultures and bring on the development of emerging music ecosystem… As more markets mature, they join with and contribute to the rich, globally interconnected music world.”
IFPI’s Global Music Report 2022 Topline Figures:
- Global music sales up 18.5% to $25.9 billion
- Streaming subscription revenues up 21.9% to $12.3 billion
- Total streaming revenues (including paid and ad-supported) up 24.3% to $16.9 billion
- Physical revenues up 16.1% to $5 billion
- Performance rights revenues rises 4% to $2.4 billion
- 523 million paid music subscribers
- Streaming’s share of global music sales: 65%
Sustained growth in record sales from streaming means that the industry has now climbed above 2001 levels – at least on an absolute dollar basis, not accounting for inflation – when IFPI started reporting global music sales and the music industry was worth $23.6 billion. Piracy and declining physical sales saw the market bottom out at $14 billion in 2014.
There are now 523 million users of paid streaming services worldwide, up from 443 million in 2020. Streaming is now the leading revenue format in nearly every global music market, reports IFPI
In terms of world markets, the U.S. retains its number one position with music sales growing 22.6%. Japan holds steady in second place with sales growing 9.3% in 2021 – arresting the prior year’s 2% decline on the back of falling demand for physical product.
The third and fourth biggest markets for recorded music remain the United Kingdom (+13.2%) and Germany (+12.6%), respectively. The rest of the top 10 is made up of France (+11.8%), China (+30.4%) South Korea (+21.6%), Canada (+ 12.6%), Australia (+4.1%) and Italy, which returned to the top 10 after growth of 27.8% IFPI did not provide a market-by-market revenue breakdown.
This story will be updated.
