In a game-changing moment for music creators, streaming has become the golden ticket for composers and songwriters. A report released last week revealed that in 2022, music streaming skyrocketed to become the primary source of income for the industry. Earnings for composers and songwriters jumped by over 25% to reach a staggering 10.83 billion euros, equivalent to $11.44 billion.
The digital frontier isn’t just growing, it’s booming. Digital royalty collections witnessed an almost 34% surge in 2022, landing at 4.2 billion euros. The International Confederation noted that this rise comes as more people are leaning into subscription services for both music and video content. In fact, streaming revenues have doubled since before the pandemic and now account for a significant 35% slice of the total income pie, even surpassing traditional TV and radio collections.
But what about the live stage? Good news there too. Income from concerts, exhibitions, and theatres soared by nearly 70% in 2022, reaching 2.68 billion euros. While this figure still lags behind the pre-pandemic numbers by around 7.9%, the live entertainment sector is on a clear path to recovery and may even exceed its former glory.
Streaming juggernaut Spotify threw its weight into the narrative earlier this week. The platform boasted a 26% increase in monthly active users in the last quarter, clocking in at 574 million, a number that beats both its own projections and market expectations.
However, it’s not all smooth sailing ahead. While the sector shows promise for 2023, fueled by pent-up demand, concerns loom over consumer spending and shrinking touring budgets for artists.
“Creators have a seat at the table, and it’s about time”, says Bjorn Ulvaeus, the CISAC President and co-founder of the iconic Swedish music group ABBA. He believes that artificial intelligence is poised to reshape the industry’s financial landscape in the long term. For now, the message is clear: tech firms and policymakers must engage in meaningful dialogue with creators.
It’s an exciting, albeit uncertain, time for the world of music. And as always, the creators are the heartbeat of the industry.