IFPI Sums Up the Covid-19 Affected Music Industry’s Revenue

IFPI Global Music Report

The International Federation of the Phonographic Industry* (IFPI) has released their annual Global Music report, and it is a lot to unpack. According to IFPI, the global recorded music market grew by 7.4% in 2020, marking the sixth consecutive year of growth. Figures released today in IFPI’s Global Music Report show total revenues for 2020 were $21.6 billion.

Growth was driven by streaming, especially by paid subscription streaming revenues which increased by 18.5%. There were 443 million users of paid subscription accounts at the end of 2020, according to IFPI. Total streaming – including both paid subscription and advertising-supported – grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.

Latin America was once again the fastest-growing region globally, with revenues increasing by 15.9% in 2020. Africa and the Middle East made their debut on the chart, with the region increasing by 8.4% primarily thanks to the Middle East and North Africa region.

While streaming was up, other areas took a hit largely because of the COVID-19 pandemic. Physical revenues fell by 4.7% in 2020 to a total of $4.2 billion, which is a slightly slower rate of decline than the previous year’s 5.3%. Alongside a reduction in revenues from CDs (down by 11.9%), vinyl had an extraordinarily strong year and revenues grew 23.5% compared with 6.1% in 2019. Revenues from performance rights (use of recorded music by broadcasters and public venues) declined by 10.1% in 2020 as the COVID-19 pandemic impacted public performance revenues, interrupting more than a decade of continuous growth in this area.

“As the world contends with the COVID-19 pandemic, we are reminded of the enduring power of music to console, heal and lift our spirits. Some things are timeless, like the power of a great song or the connection between artists and fans, but some things have changed. With so much of the world in lockdown and live music shut down, in nearly every corner of the globe most fans enjoyed music via streaming,” stated IFPI Chief Executive, Frances Moore. (Read Moore’s full statement here.)

IFPI rolled out their 2020 Chart reports, including the Top Global Recording Artists of 2020 report, earlier this month. Mega popular supergroup BTS took the honor of ranking number one on that chart as well as the Global Top 10 Singles Chart, Global Top 10 Album All-Format Chart, and Global Top 10 Albums Sales Chart.

IFPI ranks the top 10 music markets in 2020 as follows:

1. United States
2. Japan
3. UK
4. Germany
5. France
6. South Korea
7. China
8. Canada
9. Australia
10. Netherlands

* – The IFPI is the organization that represents the recorded music industry worldwide.