The annual business report from IMS shows how far electronic music has developed in the past two years.
After three years off due to Covid, the International Music Summit returns to Ibiza. This year’s edition features a significant upheaval, reflecting changes in the consumption and distribution of electronic music.
As you might expect, Web3 dominates the agenda. Long term music industry pioneer, Lyor Cohen mentioned in his keynote, that the music industry is a 1st class citizen in this developing new world.
The headline figure is that the market valuation has reached $6 billion dollars. This was up 71% in 2020, but down 20% in 2019.
The data is based on an IMS analysis of key facts and figures from decision-makers, leaders, visionaries, and central organisations across the industry. Providing vital statistics on the status and economic movement of the electronic music sector with information from over thirty interviews and detailed analysis of over 40 data sets, many exclusive to IMS.
Further findings include:
- The recorded music market continued to grow including growth in physical sales. Beatport continues to buck the trend, achieving 13% growth despite the downloads market declining by 15%.
- Festivals and clubs bounced back in 2021, however not without challenges. Continued restrictions meant that record consumer demand couldn’t be met.
- DJ equipment increased in value by 14%. The end of the 2020 home DJ boom was offset by the return to live performances, this too was hampered due to chip shortages and global shipping challenges.
- Web3, Metaverse, NFTs, Blockchain, DAOs and Technology are playing a fundamental part in building new monetizable relationships with audiences. Electronic artists pioneered NFTs for digital collectables. 7 of the top 10 are electronic music artists. 64% of all identified music NFT issues, worth $55.4m, were issued by electronic artists.
- Gaming is more than 20x the size of the electronic music industry and it’s growing rapidly. With early commitment from major labels on a level not seen before, Sony has $250m in Fortnite and has just invested a 1$Billion in Epic games. Warner has eight figures in Roblox and a number of partnerships with digital experience companies.
- Streaming doesn’t pay, just 1,650 electronic artists make more than $65k p.a. from their music, that’s less than 1.2%. However, DJ & Artist earnings were up $0.4bn (111%) vs. 2020 mainly due to the return to live music and shows in 2021.
- Giving back is now more important than ever. IMS counted 138 electronic music education providers, with Toolroom Academy counting 7,500 alumni.
- Diversity is progressing, but the journey remains long. Representation and demand for people of colour in the DJ Mag Top 100 grew in 2021. However several years of slow growth in demand for female representation in the DJ Mag Top 100 stalled in 2021. Audiences voted 12 female DJs into DJ Mag’s Top 100 DJs in 2021. Down 1 vs. 2020 – the first drop in numbers since 2016.
Find out more on the IMS website.
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