Indie music sees significant growth in streaming over the previous year

The streaming market share of independent artists and record labels grown substantially in 2020. This growth was mainly driven by the independent artists, who have seen their revenue and market share rise the most. The independent artists and labels did a lot better then the three major labels, who under preformed in the streaming market for the first time ever.

Independent music's share of the global streaming market grew to 31,5% in 2020, a 27% growth compared to the year before. The streaming market grew with 19.6%, meaning independent music's share grew faster then the market itself! The biggest winners are the independent artists, a category also know as "Artists direct". They have seen a 34.1% rise in revenue, breaking the billion dollar ceiling by producing $1.2 billion dollar in revenue. Artist direct now makes up 5.1% of the total record industry market.


For the first time ever, the major record labels under performed in the streaming market. Not all preformed the same though, Sony’s growth was in line with the market growth, but Universal’s was slightly below and Warner’s share was far below the market's growth. Warner even reported no growth in revenue in 2020.

The total record industry market grew with 7% in 2020, less than the 11% growth of 2019. This is in part due to receiving less royalties on music being played at bars, clubs and stores due to the lockdown. The collective total market share of the major record labels dipped a bit, from 66.5% to 65.5%. Surprisingly the independent record labels also saw a drop of 0.1% in their total market share. But overall the independent record labels still grew 6.7% - only slightly below the market growth. The growth was not distributed equally though, many established names in the indie label market reported little to no growth. While at the same time smaller emerging labels reported very large growth.

 

Source: Hypebot

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