Japan’s music industry grew nearly 10% in 2021
The International Federation of the Phonographic Industry has released “Global Music Report 2022”, this year’s edition of its annual report detailing what has happened in the music industry around the world over the past year.
The report says the global music industry saw revenue rise for the seventh consecutive year, by 18.5% in 2021, to a total of $25.9 billion. This is the highest amount of income this millennium.
Streaming revenue grew 24.3% and now accounts for 65% of global revenue at $16.9 billion. There has been growth in streaming revenue in all regions of this world. This was driven by a 21.9% growth in paid subscription revenue. At the end of 2021, there were 523 million users of paid streaming services worldwide, representing 47.3% of global revenue. Ad-supported streaming services account for the remaining 17.7% of global streaming revenue.
After streaming, the second largest source of revenue is physical, which now accounts for 19.2% of global revenue, at $5 billion. This represents an increase of 16.1% compared to 2020 and marks the first growth of the physical market in 20 years. The reason for the increase is the return to brick-and-mortar retail which was heavily impacted by the COVID-19 pandemic in 2020. CD revenues grew for the first time this millennium, with particularly strong interest in Asia . Vinyl sales continued to grow, growing 51.3% in 2021 compared to 25.9% growth in 2020.
Physical is followed by performing rights, which accounted for 9.4% of worldwide revenue, at $2.4 billion, an increase of 4%. The increase comes amid the global recovery from the COVID-19 pandemic.
After performing rights come downloads and other digital content, which now account for 4.3% of global revenue. This segment brought in $1.1 billion last year, a decline of 10.7%. It is the only channel to see a decline in revenue in 2021 as digital music consumption shifts from an ownership model to an access model. Downloads fell 15.3% to $839.3 million, or 3.2% of global revenue. On the other hand, other digital increased by 6.8%
The last segment is synchronization. It represents 2.1% of global revenue at $549.1 million. This segment grew by 22% from 2020, once again, as the world continues to emerge from the COVID-19 pandemic.
The top 10 music markets in order are the US, Japan, UK, Germany, France, China, South Korea, Canada, Australia and Italy . This is unchanged from 2020, except for China and South Korea which change places and Italy which returns to the top 10 in place of the Netherlands.
For the seventh consecutive year, Asia experienced growth, with an increase of 16.1%. This is partly explained by the return to growth of the largest market in the region, Japan. After two years of decline, Japanese sales increased by 9.3%. Excluding growth in Japan, sales in Asia were up 24.6%. Revenues from Asia accounted for 23% of the global market. After a physical revenue rebound in 2021, Asia was also responsible for 49.6% of global physical revenue.