TORONTO, March 21, 2023 /CNW/ - Today, the IFPI released the Global Music Report 2023, a comprehensive annual review of the global recorded music market. In addition to revenue and listenership data, the report provides insight and analysis on important global trends and issues facing the music industry, including the rapid expansion of global music markets such as Sub-Saharan Africa, as well as the need for responsible policies around artificial intelligence that protect human artistry and creativity.
In Canada, the music market grew by 8.12% in 2022, to a total of $608.5 million USD, ensuring the country held its place as the 8th largest market in the world. Canada's growth was driven by a 10.1% increase in streaming, which includes an 8.4% increase in subscription streaming to $380.6 million USD, and 16.1% and 16.9% gains in ad-supported audio streaming and ad-supported video streaming, respectively. Physical format revenue increased by 6.5% in 2022 to a total of $68 million USD, the 7th highest ranking in the world. This growth was driven by vinyl sales, which increased 19.4% and offset declines in CD and music video sales.
"The growth of the Canadian music market is driven by the incredible commercial and creative partnerships between artists and labels. More than ever, labels play an essential role as the leading investors in artists, helping them break through and connect with their fans globally," said Patrick Rogers, Chief Executive Officer of Music Canada. "While the tools and platforms available to make and consume music continue to evolve, it's clear that the personal connection between artist, music and fan remains paramount."
The growth in the Canadian market is a reflection of wider industry trends. The global recorded music market grew by 9% in 2022, also driven by an increase in paid subscription streaming. Globally, subscription audio revenues were up 10.3% to $12.7 billion USD, while physical format revenues increased 4%, performance rights revenues gained 8.6% and synchronization income grew 22.3%. Total global revenues for 2022 were $26.2 billion USD. Streaming remains the dominant source for growth, comprising 67% of recorded music revenues globally. There were 589 million users of paid subscription accounts at the end of 2022, up from 523 million in 2021.
For the second year in a row, recorded music revenues grew in every region around the world, with Sub-Saharan Africa becoming the fastest growing region in 2022 with 34.7% growth. The report highlights the increasing importance of emerging markets to global recorded music revenues, noting that Latin America saw gains of 25.9%, with every market in the region posting double-digit growth. While fans can now engage with music from almost all countries in the world, the report also notes the increasing trend towards embracing and celebrating local artists and culture.
"Record companies' investment and innovation has helped make music even more globally interconnected than ever, building out local teams around the world, and working with artists from a growing variety of music scenes. This is driving music's development whilst enabling fans to seize the expanding opportunities to embrace and celebrate their own local artists and culture," said Frances Moore, IFPI Chief Executive.
The continued growth of the global industry allows reinvestment in the next generation of artists, and the report makes clear the continued need for new technologies and platforms to ensure the value of music is returned to its creators. With respect to AI in particular, the industry is excited by the possibilities it presents, but innovation and use of AI must not come at the expense of human creativity and reward. Referencing the IFPI's policy principles, the report states, "The artist must remain at the centre of all that we do" - echoing the guiding principles for AI laid out in the recently launched Human Artistry campaign.
"As the industry continues to evolve and develop new and innovative ways to bring music to global audiences, it's vital we keep artists and the businesses who invest in them at the heart of our work. As the representative of Canada's major labels, and partner to the industry, we will continue to advocate for forward-looking policies that support artists' creative and commercial success," added Rogers.
The free Global Music Report 2023 - State of the Industry is now available on the IFPI's website.
About Music Canada:
Music Canada is a non-profit trade organization that represents the major record companies in Canada: Sony Music Entertainment Canada, Universal Music Canada and Warner Music Canada. Music Canada also works with some of the leading independent record labels and distributors, recording studios, live music venues, concert promoters, managers and artists in the promotion and development of the music cluster.
SOURCE Music Canada