GLOBAL MUSIC REPORT 2023 - STATE OF THE INDUSTRY
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2 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 3 In an ever developing and rapidly changing music market, we offer our artists a Whilst we continue to bring high quality content into the world from hugely innovative CONTENTS tailor-made service creators, we to fit their unique needs. We continue must all recognise that the worth to push hard to achieve the success and importance of this creativity can Global Music Market 2022 in Numbers 4 our artists deserve whilst giving them be diminished if we don’t proactively the space and resources they need to maintain that value everywhere Introduction by Frances Moore 5 make great music!” consumers experience content. The recording industry represents the Global Charts 2022 6 Konrad von Löhneysen Managing Director, Embassy of Music music that drives the growth and Global Market Overview 2022 10 success of many other businesses, so we must be vigilant against any race to Figures by Format 2022 12 To succeed, music’s the bottom offered up to consumers. future must be With new chapters on the horizon Figures by Region 2022 14 such as the Metaverse and AI, we will artist-centric. As we enter our industry’s continue to protect our creators as we The Constantly Evolving Partnerships Between Artists and Record Labels 16 next exciting navigate a new complex rights model.” Driving Long-term Creative and Commercial Success 18 chapter, we must remain focused on our shared goal: a Rob Stringer CBE Chairman, Sony Music Group A&R: Discovering and Developing Artists and Their Music in 2023 22 robust, growing and sustainable music ecosystem. This is an environment Case Study – Sam Ryder 24 in which great music is not drowned out by an ocean of noise, where music Music thrives at Artist Wellbeing 26 is easily and clearly accessible for fans to discover and enjoy, and an the intersection of Discovering New Opportunities for Artists and Their Music 28 culture, technology, environment in which the creators of and commerce. Case Study – Steve Lacy 34 all music content–whether in the form It’s the single most of audio or short-form video—are fairly influential global Artificial Intelligence: Defining its Place in Music 36 compensated and can therefore thrive art form, with an unmatched ability for decades to come.” to attract audiences, drive social Local Cultures Driving Music’s Global Growth 38 Sir Lucian Grainge Chairman & Chief Executive Officer, interaction, transcend borders, and unite people. Despite this power, Case Study - Noga Erez 42 Universal Music Group it’s still undervalued compared to The Global Strength of Local Repertoire 44 other forms of entertainment. We're excited to unlock the industry’s next Case Study – Fujii Kaze 48 phase of growth by championing extraordinary artists and songwriters, Securing A Framework for Long-Term, Sustainable Growth Across the Music Ecosystem 50 building long-term careers and loyal fan communities, while developing Photo credits 52 innovative business models and high impact tech products. Our future is a © IFPI 2023 whole universe of opportunity." All data, copy and images are subject to copyright and may not be reproduced, transmitted or made available without IFPI.ORG permission from IFPI. Use of this report, IFPI Global Music Robert Kyncl @IFPI_ORG Report (2023 edition) is governed by Global Music Report Chief Executive Officer, Warner Music Group Terms of Use (gmr.ifpi.org/terms-of-use) and Global Music DESIGNED BY DATA DESIGN Report Content Usage Rules (gmr.ifpi.org/content-usage).
4 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 5 GLOBAL MUSIC +9.0% GLOBAL REVENUE GROWTH INTRODUCTION THIS REPORT RELAYS THE STORY OF TODAY’S CONSTANTLY GROWING AND MARKET 8 TH EVOLVING MUSIC WORLD. 2022 IN NUMBERS CONSECUTIVE YEAR OF GROWTH Today we have an incredible, kaleidoscopic array of music coming from a diverse group of artists US$26.2BN across the globe. Music continues to grow globally, This has created new and diverse and artists are increasingly opportunities for artists to connect interconnected with fans as a result with their fans; from harnessing of the worldwide infrastructure and cutting edge technology – ranging FRANCES MOORE Chief Executive, IFPI investment from record companies. from creating immersive music VALUE OF GLOBAL RECORDED Alongside this, record companies experiences to enhancing health and fitness activities – to reimagining MUSIC REVENUES are building and developing local opportunities to tell artist stories teams around the world who are on through films, TV and brand the ground, working with current partnerships and much more. and emerging artists from a growing 67.0% variety of music scenes. This is However, as the opportunities for driving music’s development whilst music continue to expand, so too do enabling fans to seize the expanding the areas in which record companies opportunities to embrace and must work to ensure that the value celebrate their own local artists and of the music artists are creating culture. is recognised and returned. This challenge is becoming increasingly The core of a record company’s complex as a greater number of OVERALL STREAMING SHARE mission remains partnering with actors seek to benefit from music OF GLOBAL REVENUE artists to help them achieve their whilst playing no part in investing in greatest creative and commercial and developing it. potential. Today, that partnership has expanded into more areas and Ultimately, however, the story of 10.3% more parts of the world as record this report is one of innovation and companies increase their focus on growth and, above all else, great innovation. artists and their music. GROWTH IN SUBSCRIPTION AUDIO STREAM REVENUE Sam Smith photo by Michael Bailey Gates
6 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 7 GLOBAL CHARTS MOST POPULAR ARTISTS & 02 03 BEST SELLERS OF 2022 BTS 04 Drake TOP 10 GLOBAL RECORDING ARTIST CHART 2022 Bad Bunny 01 05 The Weeknd 06 SEVENTEEN 07 Stray Kids 08 09 Taylor Swift Harry Styles 10 Jay Chou Ed Sheeran The IFPI Global Recording Artist Chart measures consumption across all formats (including streaming formats, digital and physical albums, and single sales) and all countries in a calendar year. It is weighted based on the relative value of each method of consumption.
8 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 9 GLOBAL TOP 10 GLOBAL TOP 10 SINGLES CHART 2022 ALBUMS CHART 2022 GLOBAL SUBSCRIPTION GLOBAL SUBSCRIPTION STREAMS EQUIVALENT STREAMS EQUIVALENT 01 06 01 06 IMAGINE DRAGONS HARRY STYLES & JID BAD BUNNY STRAY KIDS AS IT WAS 2.28BN ENEMY 1.26BN UN VERANO SIN TI MAXIDENT 02 07 02 07 GLASS ANIMALS ED SHEERAN TAYLOR SWIFT SEVENTEEN HEAT WAVES 1.75BN SHIVERS 1.23BN MIDNIGHTS FACE THE SUN 03 08 03 08 THE KID LAROI & JUSTIN BIEBER GAYLE HARRY STYLES BLACKPINK STAY 1.74BN ABCDEFU 1.22BN HARRY'S HOUSE BORN PINK 04 09 04 09 ELTON JOHN & DUA LIPA BAD BUNNY & COLD HEART CHENCHO CORLEONE BTS OLIVIA RODRIGO (PNAU REMIX) 1.34BN ME PORTO BONITO 1.21BN PROOF SOUR 05 10 05 10 THE WEEKND ED SHEERAN ENCANTO CAST ED SHEERAN SAVE YOUR TEARS 1.32BN BAD HABITS 1.20BN ENCANTO OST = The IFPI Global Album Chart takes into account all consumption formats, spanning physical sales, digital The IFPI Global Single Chart measures digital format singles across a calendar year, including paid subscription downloads, and streaming platforms across a calendar year. It is weighted based on the relative value of each streaming, ad-supported platforms, and single-track downloads and streams. Source: IFPI method of consumption. For the full Top 20 Global Artists, Singles and Albums please see www.ifpi.org Source: IFPI
10 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 11 GLOBAL MARKET GLOBAL RECORDED MUSIC INDUSTRY REVENUES 1999 - 2022 (US$ BILLIONS) 30 30 0.6 OVERVIEW 2022 0.6 25 25 0.5 2.5 0.5 2.5 2.3 0.9 0.6 2.3 0.9 0.6 0.4 1.1 20 0.7 0.4 1.1 20 0.7 0.5 0.7 0.8 0.5 2.2 0.7 0.3 0.8 0.8 0.5 2.2 0.3 0.8 1.0 0.9 2.4 0.1 0.9 0.5 1.2 1.0 1.9 1.1 0.4 2.4 1.2 THE GROWTH OF THE GLOBAL INDUSTRY CONTINUES 0.1 1.1 2.5 1.9 0.1 0.3 0.4 1.4 15 1.1 2.5 1.4 0.1 2.6 1.1 0.3 2.2 15 2.6 1.2 0.3 0.3 0.3 0.3 0.3 2.2 1.6 0.2 1.2 0.3 0.3 0.3 0.3 0.3 0.3 2.1 1.6 17.5 3.2 1.3 1.3 1.4 0.3 2.1 0.2 3.2 1.3 1.3 1.4 1.6 1.7 1.8 2.5 15.7 17.5 3.5 1.6 1.8 2.5 15.7 22.3 0.3 3.5 1.7 3.1 21.6 22.3 21.0 21.6 0.3 3.7 10 21.0 20.1 4.1 4.2 3.1 12.7 0.4 3.7 4.1 4.1 3.6 10.7 12.7 10 20.1 18.5 18.0 0.4 4.2 3.9 3.6 18.5 18.0 16.8 0.4 4.1 3.9 8.8 10.7 Rising to US$26.2 billion, the global recorded streaming) digital seeing a decline. Subscription streaming 16.8 15.2 15.2 13.1 0.4 0.6 0.6 0.9 1.3 4.4 6.2 6.2 8.8 0.9 1.8 2.7 4.4 music market grew by 9.0% in 2022. was the leading driver of growth (+10.3% to US$12.7 billion). 13.1 11.0 1.3 1.8 2.7 5 11.0 9.6 Overall streaming (including subscription and advertising- 5 9.6 8.2 8.2 7.5 6.9 Revenues increased in every region and in each of the world’s supported), accounted for the highest proportion of the 7.5 6.9 6.1 5.4 5.2 6.1 5.0 4.7 4.2 4.4 4.6 top 10 markets, with China moving into the top five for the market, increasing to a 67.0% share of the overall market 5.4 5.2 5.0 4.7 3.9 3.8 4.6 4.2 3.9 3.8 4.4 first time ever and Brazil re-entering the top 10. Growth came in 2022 up from a 65.5% share the prior year. 0 0 from a wide range of revenue sources: once again there was a 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 rise in revenues from streaming, physical, performance rights 22.3 21.0 22.1 20.7 19.2 19.2 18.7 18.1 16.9 15.7 14.6 13.8 13.8 13.8 13.5 13.1 13.6 14.8 15.9 17.5 18.9 20.3 24.0 26.2 and synchronisation, with only downloads and other (non- 22.3 21.0 22.1 20.7 19.2 19.2 18.7 18.1 16.9 15.7 14.6 13.8 US$ TOTAL REVENUE 13.8BILLIONS 13.8 13.5 13.1 13.6 14.8 15.9 17.5 18.9 20.3 24.0 26.2 TOTAL REVENUE US$ BILLIONS BTS photo by BIGHIT MUSIC Total Physical Total Streaming Downloads & Other Digital Performance Rights Synchronisation Total Physical Total Streaming Downloads & Other Digital Performance Rights Synchronisation GLOBAL RECORDED MUSIC REVENUES BY SEGMENT 2022 TOP 10 MUSIC MARKETS IN 2022 2.4% 01 USA Synchronisation 02 67.0% 9.4% +9.0% JAPAN Total Streaming 03 UK Performance Rights 18.7% GLOBAL RECORDED MUSIC 04 GERMANY 17.5% MARKET GROWTH Ad-supported 05 CHINA streams +11.5% Physical 06 48.3% FRANCE GROWTH IN OVERALL STREAMING REVENUES 07 SOUTH KOREA 3.6% Subscription 08 Downloads & audio streams 589m CANADA Other Digital 09 BRAZIL USERS OF PAID SUBSCRIPTION ACCOUNTS 10 AUSTRALIA
12 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 13 FIGURES BY STREAMING +11.5% FORMAT 2022 In 2022 there were revenue gains across nearly all format categories, with streaming continuing to dominate the global PHYSICAL +4.0% Global revenues from streaming continued to increase in 2022, seeing double-digit growth (+11.5%) and reaching US$17.5 billion. Although this was a slower rate of growth than the prior year (+23.9%), there was a varied picture across the globe with some regions posting big climbs in streaming revenues. Revenues from subscription streaming grew by 10.3% globally, reaching US$12.7 billion in 2022. revenue mix. Whilst growth rates across all formats were lower Physical format revenues – including CDs, vinyl than the prior year – with the exceptional growth in 2021 partly and other physical formats – increased for a second attributable to a post-pandemic boost – there were double-digit year running, albeit not matching the prior year’s growth (+16.1%) which had been stimulated by a post- gains in streaming and resilience in the physical market. -11.7% pandemic resurgence. Growth of 4.0% equated to US$4.6 billion in revenues, taking physical to a 17.5% share of the overall market. Within this, revenues from CD and other physical revenues saw a slight decline (-0.4%) whilst vinyl’s upward trajectory – sustained for more than a decade - continued with growth of 17.1% in 2022. Physical saw its strongest performance in Asia once again, with DOWNLOADS & OTHER DIGITAL that region accounting for almost half the global revenues for physical (49.8%). In an expected trajectory, downloads and other (non-streaming) digital – representing just 3.6% of the overall market - was once again the only format category to experience decline in 2022, as streaming continued to increase its foothold as the dominant digital format. Within this, revenues from permanent +8.6% downloads fell by 19.6% to US$644.4 million whereas other non-streaming digital formats, including mobile personalisation grew by 12.2%. PERFORMANCE RIGHTS Revenues from performance rights – the use of +22.3% recorded music by broadcasters and public venues – grew by 8.6%. Reaching US$2.5 billion in 2022, the revenues surpassed their pre-pandemic levels in 2022 and made up 9.4% of the global market. SYNCHRONISATION Accounting for 2.4% of the market in 2022, synchronisation – revenues from the use of recorded music in advertising, film, games and TV – maintained strong increases, posting another year of growth exceeding 20% and reaching US$640.4 million. Harry Styles photo by Lillie Eiger
14 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 15 FIGURES EUROPE The world’s second largest region for recorded music revenues saw growth of 7.5% in 2022. UK, ASIA Asia experienced double-digit growth for the BY REGION MIDDLE EAST & NORTH AFRICA Germany and France remained the three largest third consecutive year, up by 15.4% and outpacing markets in Europe, all posting growth (+5.4%, +2.2% the overall global growth rate. and +7.7% respectively). Posting the world’s third highest growth rate in 2022, Middle East & North Africa saw revenues from Japan, the region’s largest market saw a second year Europe’s revenues from streaming accounted for more recorded music climb by 23.8%. of consecutive growth (+5.4%) whilst the region’s 2022 than a quarter of revenues from the format globally second largest market – China – saw a significant (26.0% share) and also accounted for the highest Streaming accounted for the vast majority of rise of 28.4% pushing it into the top five markets proportion of revenues from performance rights the market, with those revenues accounting globally for the first time. Overall revenues from Asia (54.9% of global performance rights revenues). for a 95.5% share. accounted for 22.9% of the global market. Once again, the recorded music market saw growth in every region across the globe in 2022. Four regions posted double-digit gains, +7.5% outpacing the overall growth rate of 9.0% and Sub-Saharan Africa overtook Middle East and North Africa as the fastest growing area. +5.0% +23.8% +15.4% USA & CANADA +34.7% Maintaining its foothold as the world’s largest region for recorded music, revenues in the +25.9% USA and Canada increased by 5.0% in 2022; a slower rate than the prior year (+21.8%) when +8.1% exceptional market growth had been partially driven by a post-pandemic boost. Both USA (+4.8% in 2022) and Canada (+8.1%) remained global top 10 markets, with USA the single biggest national market in the world, exceeding US$10 billion for the first time. Overall the USA & Canada region represented 41.6% of SUB SAHARAN AFRICA AUSTRALASIA the global market. With a steep increase of 34.7%, and the only region In Australasia, Australia – remaining a top 10 LATIN AMERICA to see more than 30% growth, Sub-Saharan Africa market – experienced growth of 8.1%, driven became the fastest growing region for recorded music largely by streaming. Similarly New Zealand saw Revenues in Latin America rose by 25.9% revenues in 2022. recorded music revenues increase by 8.0%. continuing a decade-plus trajectory of growth. Growth was boosted by a strong climb in revenues in Overall, recorded music revenues in the Australasia Every market saw double-digit growth, including the region’s South Africa, the region’s largest market (+31.4% versus a region rose by 8.1%, an increase on the prior year’s two largest markets, Brazil (+15.4%) and Mexico (up steeply modest 2.4% growth the prior year). growth rate of 4.7%. by 24.3%). Once again, streaming revenues dominated, accounting for 85.2% of the Latin American market.
NERSHIPS 16 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY THE CONSTANTLY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 17 TNERSHIPS BLACKPINK photo by Jungwook Mok EVOLVING PARTNERSHIPS BETWEEN ARTISTS AND TNERSHIPS RECORD LABELS At its core, a record company continues RTNERSHIPS to be focused on partnering with artists to find creative and commercial success. Today, that partnership has expanded into more areas and more parts of the world; creating more opportunities to reach and connect with an increasingly diverse fanbase. Dennis Kooker, President, Global approaches, giving autonomy to artist development and moving ARTNERSHIPS Referencing the likes of Aya Nakamura’s Francophone- Digital Business at Sony Music operators, fostering healthy internal culture forward are the priority—not first collaboration with Fortnite and Spinnin’ Records Entertainment, says that in order competition because at the end of those who are solely in this to seize creating NFTs with LGND.io, Simon Robson, President, to do this, record companies must the day, we are a collection of labels financial opportunities in a growing International, Recorded Music, Warner Music Group simultaneously serve the immediate all founded by entrepreneurs who market. Where were those people explains, “Music is integral to so many different elements needs of artists whilst building believe—in the face of tremendous when the industry was in decline and of our lives and not just through the ‘traditional’ streaming towards what they will require next. challenges—that an artist they needed help? We were here, and we services; you have social media, health and fitness, gaming “Priority number one is executing on discover could change the world.” were investing all through the difficult and Web3 opportunities and much more. We are constantly what’s happening today for our artists years.” trying to develop these opportunities for our artists.” – identifying where the opportunities “That spirit is very much alive within are and what needs to be done UMG. We have a culture that prizes now. We’re also in a business that that philosophy and renews that ARTNERSHIPS continues to evolve in material behaviour regularly.” ways, so we have significant dedicated resources that are However, Tanous goes on to warn focused towards the future. that as the opportunities continue to It's hugely important for the grow in the music ecosystem, it has We help extraordinary sake of our artists and their ongoing become more important than ever talent cut through success that we effectively over- to ensure value is returning to those the background noise deliver for them in both these areas, committed to investing in, creating and that we invest for the future and developing artistry and music. in our short-span before it happens.” attention economy, “Everybody I work with got into this enabling them to truly Will Tanous, EVP & Chief business because working with artists Administrative Officer, Universal and music is not merely a job, it’s a connect with fans and Music Group, feels it is the calling. There are a lot of new and so unlock a universe of entrepreneurial spirit at the heart different players in the ecosystem opportunities.” of record companies that drives now that the industry has returned MAX LOUSADA the increasing opportunities to growth. We need to make sure the CEO, Recorded Music, for artists. “The things we prize people who are setting the agenda Warner Music Group are innovation, taking diverse for music are the people for whom Jay Chou photo courtesy of JVR
18 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 19 DRIVING LONG-TERM CREATIVE We are a collection of labels all founded by entrepreneurs who believe - in the face of tremendous challenges - that AND COMMERCIAL SUCCESS an artist they discover could change the world.” WILL TANOUS EVP & Chief Administrative Officer, Universal Music Group On the ground, record labels are building teams of skilled executives who can support MARKETING and enhance an artist’s creative vision, whilst UPFRONT A&R Influencer campaigns INVESTMENT BUSINESS CREATIVE Digital ARTIST BRAND also understanding the consumer market that DEVELOPMENT (social media, ads) OPPORTUNITIES Advance payment AFFAIRS Session organisation DEVELOPMENT SERVICES Physical surrounds each project. Financial Licensing Song writing Photoshoots (posters, billboards) Sync opportunities development Styling Audience analysis Brand partnerships transparency agreements Video creation CRM development Merchandise Content protection Social media New technologies development (gaming, web3) ARTIST PARTNERSHIP CREATIVE DEVELOPMENT COMMERCIAL SUCCESS PROMOTION ARTIST WELFARE RECORDING TV PROGRAMME GLOBAL Studio access GLOBAL Radio Portal access Production In-store Real time access INTER-CONNECTIVITY Mixing DISTRIBUTION performances Cross-cultural Mastering Licensed DSPs Podcasts Legal support collaborations Merchandise Streaming Audience analysis CDs and vinyl These executives vary from our short-span attention economy, From a global perspective, the world “We’ve got to constantly think beyond marketing professionals, data enabling them to truly connect with for artists now is connected in a our limits and beyond any traditional scientists, promotion teams and fans and so unlock a universe of way that it hasn’t been previously. barriers or parameters for each and beyond – all of whom are trained opportunities.” Record labels, therefore, must work every artist.” in understanding each artist’s own harder than ever to connect different unique vision and how to bring that Marie-Anne Robert, Managing teams in different regions – sharing The ways that artists can partner with vision to a global audience. Director, Sony Music France, agrees, information, best practice and ideas record companies also continues to explaining that having a label team around how to break artists and build evolve, with more flexibility being Max Lousada, CEO, Recorded Music, that is able to adapt to new challenges long term audiences in every corner factored into each partnership, Warner Music Group, outlines, is vital in today’s highly competitive of the globe. tailored around each artist’s unique “Record labels constantly deliver market. “It's extremely hard to break needs and requirements. impact and add value to artists new artists and develop new talent In terms of connecting these dots, in a fast-changing market. in a global music market where Melissa Thomas, Executive Vice That’s not just about numerous tracks are uploaded every President, International Marketing, sparking imagination, day and competing for people’s U.S. Repertoire, Sony Music curiosity or excitement attention becomes ever more Entertainment, explains, “Today, a in fans, but also challenging. That’s why we’ve put music fan’s attention is being pulled providing the strategic tremendous effort into getting the in so many different directions, advice artists need to best team on board to manage each wherever they are in the world. To sustain success over project – this team can then adapt cut through that, we have to figure the long-term. We more effectively to an artists’ needs, out a way to bring our artists into help extraordinary put an emphasis on developing the that local conversation and help tell talent cut through the right story around the artist and help their stories in an authentic and background noise in foster their creativity.” compelling way. Dave photo by Andrew Timms
20 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 21 We’ve got to constantly think beyond our limits and beyond any traditional barriers or parameters for each and every artist.” MELISSA THOMAS Executive Vice President, International Marketing, U.S. Repertoire, Sony Music Entertainment SEVENTEEN photo courtesy of HYBE FKA Twigs photo courtesy of Atlantic Records Vanessa Bosåen, President, Virgin “So, if you are an independent artist “When you start answering all those Music Label & Artist Services, offers you can partner with Virgin, and questions, it becomes clear that a slightly different package of support together we can keep that completely there are not that many places that from a ‘traditional’ label. At Virgin, independent feel, but you will have can offer all those resources to an artists tend to come with music ready access to all of our services and plug artist. It's most likely a company to be launched and looking to buy the into our global network. We have that has invested heavily in building expertise and experience of her team access to sync and brand briefs via an infrastructure designed to to help distribute and market it to Universal’s in-house team – Globe –to support artists, a company that fans: “Artists will come to us with their the world's best merch system, to the has recruited and trained best-in- music that is ready, but they need D2C network: all that infrastructure class teams in every department the services to take that music and that you wouldn't have had access to from data scientists to A&R to global promote it to the world. That's what before.” marketing.” we can provide at an outstandingly high standard: a network of all of Tanous returns to the subject of the the independent music capabilities vital role a record label performs from Universal Music across all of its today. “You can reduce it to the business units and regions. fundamentals: does an artist need a team to succeed? Most people “If you're an artist that knows what you would say, ‘Yes’. What does the team want to do with your campaign, you look like? Does it have people who know who you are as an artist, but you understand music? Does it have still can't cover all the ground yourself people who understand the creative – you come to us. It’s just too much process? Does it have people who We’ve put tremendous for any single individual. You can't be understand the platforms? Does the your own promotion and marketer, team also have the ability to create effort into getting the radio and TV plugger - you can't be and execute a marketing plan for you, best team on board to everything all at once – especially if not just in your region, but globally? manage each project.” you want to do it everywhere all at MARIE-ANNE ROBERT once." Managing Director, Sony Music France Tom Odell photo by Rory Langdon Down
22 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 23 A&R: DISCOVERING AND Jean-Sebastien Permal, VP for “I think that in the second that A&R, Continental Europe and you consider signing an artist, you DEVELOPING ARTISTS AND Africa, Sony Music Entertainment, should know the road to finding their discusses artist development as audience.” the ultimate partnership between record company and artist – and also “THE REALITY IS, WE HAD TO THEIR MUSIC IN 2023 stresses the pervasive importance DO THE SAME JOB AS WE DO of long-term thinking. He says: “A WITH EVERY ARTIST, WHICH IS successful artist and A&R relationship THE JOB WE’RE HERE TO DO: DEVELOP THEM, BE PATIENT, starts with a mutual understanding THINK LONG-TERM.” of what we are trying to accomplish from the get-go. The single biggest shift in A&R has been in how and where artists are “That's why we like to have in-depth discovered. In some instances, artists conversations and ensure we have the can be seen and known around the same understanding and chemistry world in days based on a single track with an artist and their teams right at or a short-form video measured in the start. Because our job is to work seconds rather than minutes. for the artist, and we can only do that Angele photo by Manuel Obadia-Wills when we understand who they are For record companies though, this is and where they want to go. still the starting point of a much longer At the core of a record company’s DNA remains artist game. Nick Burgess, Co-President who wants to listen to 15 seconds of a globally to amplify them and take and repertoire (A&R) – the discovery and development “Once an artist has signed to us, they of Parlophone UK, recounts the story Whitney Houston cover. The journey things to next level.” entrust us with their career, with of breaking Sam Ryder [see full Case from TikTok to sustained streaming of artists and their creative vision. The processes, their life goal and our job is to fight Study on page 24]. Sam had blown success is complex and nuanced. Access to these global networks also platforms and skills involved in A&R continue to evolve for that goal as hard as they do. And up on TikTok, and Burgess says that Huge swathes of fans don’t just jump facilitates artists with the potential to and expand, albeit with recognisable fundamental to adapt to them, because we are was how he first came to the label’s across from one platform to another. create cross-cultural collaborations. here to service them, not the other attention. But that wasn’t why he was This in turn can help domestic artists roots which still show through. way around. We want artists to know signed. “The reality was that we had to do the reach wider global audiences. Bello that about us, even before they sign.” same job as we do with every artist: continues, “We have a broad network Rouge photo courtesy of Warner Music South Africa develop them, be patient, think long- of artists, producers and writers He also outlines the strengths of a term. We had to build Sam’s career around the world to draw from, record company when faced with and this whole project as organically which helps an artist find the right the sheer volume of music being and authentically as we would with connections. Our A&R team will work uploaded daily across streaming I think that in the second any other artist.” with an artist to come up with an idea platforms. “The need to grasp the that you consider signing to collaborate to help increase their attention of audiences is incredibly an artist, you should Kabiru Bello, VP, Global A&R, audience and global exposure. challenging and that’s where the value Warner Music Group, links back to of a record label comes into play, know the road to finding a wider point about the increasing “Of course, that relationship has because we help artists cut through their audience.” strength of homegrown talents – and to be authentic, and we approach that noise using our expertise and all KONRAD VON LÖHNEYSEN how a connected, global company each collaboration case-by-case. A the tools at our disposal.” Managing Director, can make a difference to an artist or good example of Latin and European Embassy of Music track with unrivalled speed and scale. music working together is the track An integral piece of what record Dancarina, a collaboration between companies offer, in terms of “There’s been a huge shift with local two Latin artists, Anitta and Pedro discovering and positioning new He says, “We’re not a label that signs music having significant impact in Sampaio, and the French artist Dadju. artists, is still the experience and TikTok cover version artists. We set domestic markets. It’s something to It was the first collaboration between expertise of the A&R team. up some studio sessions and we which we pay close attention and French and Brazilian artists that did signed Sam because we could see share with our A&Rs around the well here and reached the Top 10 in Konrad von Löhneysen, Managing he had star quality and that he’d built world. As a team, we participate in France and #1 on the French Airplay Director, Embassy of Music, explains, a connection with his audience, but A&R meetings across the regions chart.” “That side of what we do as an A&R then you add in the song-writing skill to know what they have and are department has never changed that became so evident early on, looking for in terms of artists, songs, Permal agrees, “As a company we when we are discovering new artists. we just thought, this is what we’re collaborations, and this way our A&Rs try to bring our artists together. Right from the start we have to ask in business to do: sign and develop around the globe stay connected to For example, if one of our German ourselves – ‘What do you hear in artists like Sam.” build bridges for our artists. or Nigerian artists goes to Paris, we the music? What do you see in the want them to meet our French artists artist? What is the special position The pre-existence of a large Tik-Tok “My strategy is to be the global bridge or producers because you never this will have in the market and who is audience played very little part in for our A&Rs, where I want to keep know what could come out of that supposed to listen to it? Where can that development, “Someone who them very close and make sure we partnership.” this artist go?’ loves a song and wants to listen to catch the momentum with ideas, it 100 times is not the same person to act fast and activate our teams
24 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 25 The common perception is that his rise was built around to the people who were actually interested in Sam as an artist. two things: TikTok and the Eurovision Song Contest (Sam It was a fraction of his TikTok following, but they were true fans. came second in 2022, with Space Man, losing thanks to an overwhelming public vote for Ukraine’s winning entry). “The reality was, we couldn’t just convert that audience, we had to do the same job as we do with every artist, which is the job Nick Burgess and Mark Mitchell, co-presidents of his record we’re here to do: develop them, be patient, think long-term.” company, Parlophone, know that the real story is rather different. Burgess agrees, “We had to build Sam and this whole project as organically and authentically as we would with any other artist. Burgess says, “Sam did come to our attention via TikTok. And When the mainstream media did start to engage, they would I thought, yes, great voice, great personality, interesting artist quite often refer to him as a ‘TikTok sensation’, and that was proposition, but we’re not a label that signs TikTok cover something we have to fight against rather than encourage. We version artists.” didn’t want that notion to define or overshadow him. He saw enough potential, however, to “get him in a studio, see if “And then, out of the blue, we got a call asking if Sam would do he’s got the writing chops” that would make the difference and Eurovision. My initial reaction was, ‘Hmmm, I don’t know…’ But seal the deal. Parlophone set up sessions with Amy Wadge and then you look at Måneskin’s success the year before; it can be Max Wolfgang – and the first track to emerge was Space Man. a jumping off point for a global rock act, so why not? The key thing is, they wanted Space Man. If it hadn’t been about the “We signed Sam because we could see he had star quality and song and Sam we’d have said no. that he’d built a connection with his audience, but then you add in the song-writing skill that became so evident so early on and “Also, the thing is, we’d sit in meetings and say, ‘We just need we just thought, this is what we’re in business to do: sign and to get him in people’s living rooms, he’ll take it from there’. develop artists like Sam.” Because we’d got to know him by then, we knew what a fantastic personality he had, The first big decision was to avoid the how likeable he is, how positive he is; we obvious route of releasing Space Man. knew, given half a chance, the British public Sam Ryder photo by Edward Cook Mitchell explains: “There was the possibility would fall in love with him – and they did.” that it would have caught fire and almost We had to do the same run away from us, so that the song actually The day after Eurovision, Mitchell recalls, eclipses the artist, and that’s not ideal job as we do with every “there was obviously a sense of elation – when you’re looking at long-term career artist, which is the job the event had been brilliant and Sam had development.” we’re here to do: develop been as great, but straight away we had to build on it, carry on the momentum. Burgess continues, “It helped that Sam was them, be patient, think We didn’t want Sam to now become ‘the now writing more really beautiful songs, so long-term.” Eurovision guy’.” SAM RYDER we could put a handful of them out first, MARK MITCHELL ↓ CASE STUDY as singles and on EPs, to start building his Co-President, Parlophone Records It was decided an album needed to come story. We wanted to let people discover out before Christmas, with Burgess working Sam, his voice, his personality etc. in a more closely alongside Sam and his team to meet gentle way rather than maybe have one track dominate and the deadline. “We knew he was no one-hit wonder and we overwhelm him.” wanted to prove it as quickly as possible. Throughout the process, harnessing and interacting with the “It was a very intense period. Sam is very exact, he doesn’t just TikTok audience was in the mix, but wasn’t a central pillar. As turn up do his vocal and leave, he’s a proper artist involved in Burgess says, “Someone who loves a song and wants to listen every step along the way. to it 100 times is not the same person who wants to listen to 15 seconds of a Whitney Houston cover. The journey from TikTok “And alongside that, everything the label and Sam did together to sustained streaming success is complex and nuanced. in terms of marketing and promotion really nailed his narrative Sam Ryder was one of the biggest breakthrough UK Huge swathes of fans don’t jump across from one platform to – because it was authentic, that’s why he’s so amazing at artists in his domestic market in 2022, scoring a another.” articulating his story, because it’s all Sam. That all helped set the album up as an important debut from a genuinely interesting No. 2 single with Space Man and a No. 1 album with Mitchell explains Parlophone’s next steps, “In the background and exciting new British artist.” There’s Nothing But Space, Man. we set up something called Open Stage - it’s essentially an email database through which we could start super-serving the most engaged element of Sam’s TikTok audience. We wanted to talk
26 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 27 Selina Webb, EVP, Universal Music “Hopefully, they will go away with a Doreen Schimk, Co-President, UK, explains, “We are always looking very clear message: if you need any Warner Music Central Europe, for ways to support our artists and to help or just a chat, anywhere down the agrees with this approach to wellness, help them be at their creative best. line…it’s completely confidential, it's saying: “At Warner Music Central separate from the labels and it’s always Europe, we’ve always upheld the “Every artist that signs to one of our on, always there, if anything comes strong conviction that good mental labels has the opportunity to check up. Because something will come up, health is paramount for our artists, in with a counsellor. Maybe they want being an artist, being in the public eye, employees and our community. to talk about their relationship with especially with the pressure of social For both, we offer comprehensive social media, or they might need media, it’s a challenge. measures and services.” some additional support with the huge pressures which come with just “And there's also specialised advice Fabian Drebes, Co-President, being an artist - the volume of work, for staff working with artists. Because Warner Music Central Europe, the intensity of the work, and the they may want some guidance on how explains: “We can rely on our scrutiny. to provide the best support.” longstanding collaboration with the renowned mental and corporate health specialists at the Fürstenberg Institut, who’ve made coaching, counselling and support with a holistic approach available to our employees, and now also all to our artists – with exceptional 24/7 access, and services in 16 different languages.” Alison Wonderland photo by Simply G ARTIST WELLBEING Record companies are increasingly to be an effective partner to our looking beyond the creative and creative community in the business commercial opportunities they can as it is today – and in the economic offer artists to ensure they provide realities of today.” We are always looking for a more holistic package of support. ways to support our artists This includes considering an artist’s The initiative also focuses on artist well-being and mental health. wellness. Moultrie continues, “The and to help them be at their goal with our wellness efforts is creative best.” At Sony Music, this work comes really to ensure that our artists feel, SELINA WEBB under the umbrella of their Artists as much as possible, that they're in EVP, Universal Music UK Forward initiative. Susan Moultrie, a position to be at their very best as SVP of Artist Initiatives and Business they proceed down their creative Administration, explains, “We're path. As part of this, we provide constantly looking for ways that we access to counsellors around the can support our talent throughout world, and they can have sessions their careers, and as our industry with a licensed therapist, in person or continues to evolve and grow, so does virtual, depending on their need. The our work.” program is confidential - we don't get any details about the calls or the “Our Artists Forward initiative serves sessions. as an additional, but vital, component to the traditional roles of finding, “So if ever one of our creators feels nurturing and developing talent. that they need to work through Key areas that it touches on include some personal challenges, there's earnings enhancements, insight tools someone they can speak to in that and educational resources. We want moment.” Paul Partohap photo by Habibie Eka Perdhana
NEWDISCOVERING 28 OPPORTUNITI E S IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY NEW “Another area to consider is health and wellness. There’s a tremendous IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 29 NEWOPPORTUNI T IE S opportunity there. Digital fitness is really just the tip of the spear. OPPORTUNITIES “And our experience has been that the artists love being engaged in this area, they’re passionate about it. Because music effects everyone’s lives; it makes the world a better FOR ARTISTS AND TIES NEWOPPORTUNI place. The potential to harness music in this space is incredible, and the artist community is very invested in that. “Finally, there are the new frontiers of Web3 and the metaverse. These are longer-term opportunities which NEWOPPORTUNITIES THEIR MUSIC Aimyon photo courtesy of Warner Music Group are developing over the coming years. Web3 is going to enable new forms of digital collectibles, the management ‘ONE OF THE KEY ROLES THAT are a key part of engagement and and gating of live experiences, the WE CAN PLAY IN SUPPORTING conversations that happen in many authentication of the super-fan WHAT OUR ARTISTS WANT TO new music experiences, and they’re relationship; a lot of very interesting DO, IS TO GIVE THEM AS MANY also important drivers of new OPTIONS AS POSSIBLE’ things are going to happen there.” commerce opportunities for artists.” Angela Lopes, SVP, Strategy NEWOPPORTUNITIES In order to help artists to capitalise & Investments, Sony Music Lopes says that across their strategies on the growing array of opportunities Entertainment, points out that and investments, record companies in these new technology categories, record companies are able to identify ultimately provide artists with more Dennis Kooker, President, Global and support new opportunities choice of partners, services and Record companies today are increasingly focused on Digital Business, Sony Music for artists through their forward- solutions, plus greater bandwidth to helping to discover new opportunities for their artists to Entertainment, explains that record looking strategies and investments. create. connect with their fans. Their music remains at the heart companies are focused on building “We have teams around the world NEWOPPORTUNITIES of this whilst the opportunities themselves expand into the necessary infrastructure and that continually monitor what's She concludes, “One of the key roles increasingly diverse areas. scale around the music experiences. going on in different markets. They that we can play in supporting what This includes creating strategies are dedicated to looking at the our artists want to do, is to give them Looking top-down at the landscape today, Michael Nash, and partnerships that support the innovative technologies and business as many options as possible, while EVP, Chief Digital Officer, Universal Music Group sees four creative and commercial success of models that are coming up through also de-risking those options for main areas. “Social media, broadly defined, that continues artists, and investing in the systems the start-up community to identify them as much as possible, whether to be the big prize in terms of opportunity. to enable more creators to engage ways in which we can enhance those through developed expertise, better with new platforms whilst tracking opportunities to support our artists.” economics or data insights.” NEWOPPORTUNITIES “There’s a constant evolution of platforms and we’re and understanding the impact they making a persistent push to ensure that our artists are fully are having. She notes that GenZ is a key participating in the value that they’re creating on these demographic of focus as record platforms – economically – and accessing new ways to “In all of these new areas, we want companies look to build out future better connect with their fans. to do more than just react to the opportunities and experiences for opportunity. We work with tech artists. “We're seeing Gen Z want We think a lot about how “Then there are opportunities to engage with ‘super- and gaming companies to create to embrace new ways of engaging to help artists enhance NEWOPPORTUNITIES fans’. We see the opportunity with the devotion to vinyl. the right environment and develop with artists. There continues to be a Very often it isn’t making it out of its shrink wrap. It’s less business models and solutions that greater shift towards next generation their direct-to-fan about how it sounds than about fans longing for a deeper benefit as many of our artists as platforms, and we are seeing a relationships.” connection with artists and we think growth in vinyl suggest possible both now and in the future. rise in revenue streams from new ANGELA LOPES a bigger opportunity with a variety of different products and To deliver across our roster in a categories.” SVP, Strategy & Investments, propositions offered directly to them by the record labels, more scalable way, we do our due Sony Music on behalf of the artists. diligence when forging relationships Fan communities also are playing an with new partners, build out teams increasingly important role in evolving with the right skillset, and build back- music experiences, she says. “We end data and analytics reporting to think a lot about how to help judge whether collaborations are artists enhance their direct-to- successful.” fan relationships. Fan communities Sebastian Yatra photo by Erick Quituizaca
30 IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2023 — STATE OF THE INDUSTRY 31 “WE'VE BUILT A GLOBAL TEAM of those things and to help guide that maybe are just starting out in of an artist’s career, it used to be that OF PEOPLE TO HELP GUIDE our artists through an increasingly their careers.” you could rely fully on your recorded OUR ARTISTS THROUGH AN complicated landscape.” music and touring as your revenue INCREASINGLY COMPLICATED She highlights the impact the streams. In today’s world there are LANDSCAPE.” Naomi McMahon, SVP, Head pandemic had on brand partnerships. huge benefits in having a much more Bob Workman, SVP, International Strategic Marketing & Partnerships, “Live [music] was cut off as an avenue diversified pie chart, and brand and Brand Partnerships, Warner Music Universal Music Group, gives some and the value of brand partnerships as merchandise is a huge part of that.” and General Manager, WMX UK, insight into her department’s reach a way to engage with fans catapulted.” emphasises the importance of and infrastructure. She says, “We That’s why, Scoffern says, music tailoring new opportunities around have people operating across 40 The attraction for brands themselves, companies today are focused on individual artists – something that can markets-with a global focus on brand meanwhile, remains the same – only how merch opportunities fit into the only be achieved by having interests partnerships-and we have initiated stronger. “They understand the value larger equation of an artist’s career, and expertise in a broad spectrum of more than 200 programs in the past of authentically connecting with and is why they look to ensure that developing sectors. year alone. audiences. Music is the number one authenticity and the artist’s vision passion point, right? It's the most is front and centre in products and He says, “Our artists have a wide powerful way for them to reach branding. palette of interests, passions, and audiences and fans. skill sets, and that's reflected in He continues, “We strive to have the audience as well. We are there “We sit alongside that, really very deep relationships with the to help our artists and their music, We are there to help understanding what those brand leadership of labels, in addition to and ensure their creativity is heard, our artists and their partners are doing in music and what close relationships with artists and seen and consumed in many more they want to achieve. Then creating their management. The sooner we can settings than it would have done music, and ensure their opportunities for our artists that are work with an artist and align on what previously. We see this as critical creativity is heard, mutually beneficial. their identity is and start consistently and have worked to ensure that we seen and consumed in communicating it on merchandise, on have the global expertise, scale and “What’s great is that alongside this their website, on socials and so on, relationships to be able to do that. many more settings engagement from brands, we've the more successful the partnership than it would have done seen artists leaning in in ways that will be. “That's where, certainly within the previously." they may have been reluctant to do field of brand partnerships, there's so before, maybe because it was seen “There has to be a creative vision that BOB WORKMAN lots of opportunity. We’re often SVP, International Brand as a distraction, or the return wasn't runs through everything associated engaged in an area or activity that Partnerships, Warner Music there. Now we're really seeing huge with an artist’s brand identity - the Lil Nas X photo by Kaito might not be fundamentally about and General Manager, WMX UK value when both parties come to the logo, the touring branding, the single the music. It might be a fashion table and understand creatively and artwork, the album artwork, what the collaboration, or it might be a values commercially what we're trying to artist is wearing. It's beneficial for “It’s a partnership model. We mostly proposition, such as gender equality, “The focus is very much on creating achieve.” artists if there's consistency running drive the ideas, but either side of that, or sustainability, or the environment. broader strategic partnerships that through all of that.” at the planning stage, we make sure our artists and labels can benefit She concludes, “I feel like we’re we understand who the artist is, what “There are more lanes to operate from, but then also going in on a drawing new maps right now. I love Healy points to the company’s work The focus is very much they want to do, what sort of partners in than ever and we've built a global domestic level to create local impact, how what we do is becoming part of with Columbia Records artist Dominic they’re interested in, and then at the on creating broader team of people to be super-aware which is important for those artists the norm and that there has been Fike as an example of developing other end they ultimately say ‘yes’ or this natural integration of these non- merch opportunities with an artist’s strategic partnerships ‘no’ to everything. traditional revenue streams into the vision. “One of the things that he said that our artists and mainstream commercial picture.” in the first meeting was ‘nobody really “We work with 400 licensing partners labels can benefit from.” needs another T-shirt.’ Sustainability and sell to around 200 different At Sony Music, global branding and is what’s key to him. So he came up NAOMI MCMAHON retailers with more than 60,000 SVP, Head Strategic design agency Ceremony of Roses with an idea to do some upcycling, individual stores worldwide, from Marketing & Partnerships, works with the artist community to and Ceremony of Roses acquired Universal Music Group the likes of Sweden’s H&M, through provide merchandise development vintage t-shirts and screen printed Hot Topic from the US, to Australia’s and services. over them with Dom’s new art. The Cotton On. The great thing for artists result was a more sustainable and Chris Onyekweli, High Street Retail is that they can just plug into that Brad Scoffern, Founder & CEO, unique item for his fans.” Account Director, Warner Music, ecosystem.” Ceremony of Roses says that retail says: “We want to try and be involved and merchandise operates as an She adds, “We really want artists with the artists right from the start, “And then there’s a sales team that increasingly important extension of that we work with to feel like we're a so we can educate and strategise with focuses heavily on maximising all an artist’s brand and creates another creative partner, not a vendor. I think them. And, of course, the bottom opportunities. We deal with the way to connect even further with a that's the hallmark of our relationship line is that the artist gets approval logistics, the paperwork – and since global fanbase. with our roster. We're not just on everything they do; they're in full Brexit that’s become so much more a transactional ‘one and done’. control. complicated. That’s all there for them Chief Business Officer at Ceremony We really build and work with them and taken care of for them, by best- of Roses, Mary Healy, explains, “I 365 days a year.” in-class teams.” think when you look at the pie chart Lizzo photo by Luke Gilford
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