SWIFT: The modern music industry has existed since the 1877 invention of the phonograph. But been forced to constantly reinvent itself, from the near death experience of digital piracy to the covid shutdown. The rise of streaming, the live music boom, and a concentration on mega acts has seen the industry again rise from the ashes. Posting revenues of $52 billion last year, evenly split between recorded and live music. This growth is broadening listed investment options, from labels to venues, and moving the macro data. Taylor Swift is now a billionaire, the best-selling artist in the world, and her 53 ‘Eras’ US tour dates added over $4 billion to GDP. Whilst Beyonce’s Renaissance tour even moved the inflation numbers from Sweden to the UK.
RISE: Streaming dominates the recorded music industry (see chart), after its near-death 2010’s experience. Sales rose a strong 9% last year, with North America dominating at 40% of global sales, followed by Japan and UK. Live music sharply rebounded from the pandemic shutdown, soaring 85% last year, and driven by resilient Generation Z consumers increasingly focused on experiences and willing to stomach rising ticket prices. These rose average 26% the past three years, to $120, per Pollstar. Music is also developing other revenues from social media, gaming, health, Web3, and movies. Swift’s Eras movie saw $93 million sales its US opening weekend.
ECOSYSTEM: Streamers and venues led stock market performance, with radio broadcasters the recent laggards. But the listed music ecosystem is large and varied. From record labels like Universal (UMG) and Warner (WMG), to ticketing and venues like Live Nation (LYV) and Sphere (SPHR), that is hosting U2’s residency in Las Vegas. Streamers Spotify (SPOT), Tencent Music (TME), and Apple Music (AAPL), to radio broadcasters like Sirius (SIRI) and iHeart (IHRT), through to audio products like Sonos (SONO) and talent management like Endeavour (EDR).
All data, figures & charts are valid as of 01/11/2023.