IFPI's Global Music Report 2023: What it Means for Musicians and Music Fans Alike

IFPI’s Global Music Report 2023: What it Means for Musicians and Music Fans Alike

PR NewsWire

TORONTO, March 22, 2023/CNW/ — The International Federation of the Press and Publishers released its Global Music Report 2023, an in-depth, year-long examination of the world recorded music market. Apart from presenting revenue and listenership data, the report offers valuable insights and analysis into the significant global trends and challenges that the music industry faces. It focuses on rapidly expanding world music markets such as sub-Saharan Africa. Additionally, the report emphasizes the need for responsible policies regarding AI that protect human artists and preserve creative processes.

In Canada, the music market expanded 8.12% in 2022, reaching $608.5 million, which secures the country’s position as the world’s 8th largest market. Canada’s growth was driven by an increase in streaming of 10.1%, including a rise in subscription streaming by 8.4%, reaching $380.6 million, as well as gains of 16.1% and 16.9% for audio and ad-supported video streaming, respectively.

In 2022, revenue for physical formats grew by 6.5% to $68 million, making it the 7th highest globally. Vinyl sales drove this growth, increasing by 19.4% and masking the decreases in CD and music video sales.

Canada Seo Patrick Rodgers says, “The growth in Canada’s music market has been driven by the amazing business and creative partnerships between artists and labels. More than ever, labels are playing a critical role as major investors in artists, helping to break through and connect them to their fans worldwide. While the tools and platforms available for making and consuming music are constantly evolving, the personal connections between artists, music, and fans remain critical.”

The Canadian market growth is reflective of more significant industry trends. The world recorded music market is growing by 9 percent in 2022, driven partly by an uptick in paid streaming. Worldwide, audio subscription revenues increased 10.3% to $12.7 billion, with physical formats increasing 4%, rights-based performances seeing an 8.6% rise, and sync revenues seeing a 22.3% rise.

For the second consecutive year, recorded music revenues increased worldwide, with sub-Saharan Africa becoming the fastest-growing region with 34.7% growth in 2022. Total worldwide revenues were $26.2 billion in 2022. Streaming remains the predominant source of growth, accounting for 67% of recorded music revenues worldwide. There were 589 million paid subscription accounts in late 2022, compared to 523 million in 2021.

The report highlights the growing importance of emerging markets to record music revenues globally, noting that Latin America saw gains of 25.9%, and each region’s markets posted double-digit growth. While fans can now access music from nearly all countries worldwide, the report also notes an increasing trend toward accepting and celebrating indigenous artists and cultures. “Record label’s investments and innovations have helped to make music more globally connected than ever before, building out local teams across the globe and working with artists from an increasing diversity of music scenes. This is driving musical developments, empowering fans to take advantage of an expanded capacity to embrace and celebrate their local artists and cultures,” said IFPI chief executive Frances Moore.

The continuous expansion of the global music industry allows for reinvestment in the upcoming generation of artists. However, the report highlights the ongoing requirement for novel technologies and platforms that facilitate the return of music value to its creators.

With AI specifically, the industry is excited about its possibilities, but AI innovation and usage should not come at the cost of creativity and rewards from humans. Referring to the policy principles of IFPI, the report states, “Artists should remain the focus of everything we do,” — echoing AI guidelines set out by a newly launched campaign, “Human artistry.” “As the industry continues to grow and develop new and innovative ways of getting music in front of global audiences, we must ensure artists, and the businesses who invest in them, are the focus of all of our work. As representatives of the Canadian major labels and partners with industry, we will continue to champion forward-thinking policies that support artists’ artistic and commercial success,” added Rogers.

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