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Optimistic Future

The creation of new jobs in the music business has a relation with the prosperity of the business itself. For this reason, let us look at what is coming next.

Growth forecasts for the music business according to Goldman Sachs are better than ever. Covid-19 was just a small pause in the history of an expanding business.

We explain why this business is better than ever:

Goldman Sachs - Music In The Air - The Show Must Go On - A Temporary Pause - Graph

In this chart, recorded music includes total gross revenue. So it also includes the turnover of the major streaming platforms, among others.
Fuente: Goldman Sachs – Show Must Go On

Live Music

Worldwide turnover*

28

2019

29.1

2023

This refers to all money generated from ticket sales and sponsorships at music events. Drinks at the event are not included.

2019 - Record Turnover

A record turnover of 28 billion dollars was achieved in 2019.

2023 - New Record Forecast

The forecast for 2023 is 29.1 billion dollars. Thus, a new record is on the way.

Recorded Music

Worldwide Net Turnover*

25.2

1999

14

2014

26.7

2023

In contrast to the graph seen in the above section, these turnover figures are net. In other words, they represent the revenues of the owners of the recordings (in most cases, record labels or DIY artists). Therefore, they do not include the part of the turnover that is kept by streaming platforms (which is forecasted to be 39.3 billion dollars by 2023).

1999 - The Golden Age of Recorded Music

In 1999, in the so-called golden age of recorded music, the world record turnover was set at 25.2 billion dollars. Then came the internet and the mp3, and the worldwide turnover dropped to 14 billion dollars in 2014.

2015 - The rise of streaming

Since 2015, thanks to the advent of streaming, turnover has grown yearly.

2023 - Forecasts of breaking the historical record

The forecast for 2023 is 26.7 billion dollars. In other words, after 23 years, the recorded music sector will break the historical turnover record, surpassing the famous golden age.

Music Publishing

Worldwide Net Turnover*

5.8

2019

7.3

2023

These numbers represent the incomes from the rights owners of the musical works (mostly music publishers and authors). Because the turnover of sheet music is small, the success of the music publishing mostly depends on the success of live music and recorded music. Therefore, if live music and recorded music are doing well, music publishing will do well too. If you study with us you will understand this better.

Final

Thoughts

All these numbers do not take into account the business generated around artistic brands, or other music-related businesses, such as music tourism.

In addition to what we have seen, music is key and necessary for the creation of content in other sectors, such as video games, audiovisual (TV shows, films and documentaries) and social networks. The good news is that in any of these sectors more content is being created than ever before.

In other words, music has a very big business potential and good things are coming. The time is now.

Caption:

  • 1 million (Mn) dollars -> 1,000,000 dollars
  • 1 billion (Bn) dollars -> 1,000 million dollars
Sources:

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