IFPI Global Music Report 2019
IFPI Global Music Report 2019
Welcome
ime and time again, The increasingly connected global
T throughout my career, I have music landscape is enabling us to
been privileged to witness explore new genres, sounds and artists,
music’s power to bring us together. no matter where they originate, and for
Language and culture may vary, but artists to enjoy the opportunities that
music transcends borders and unites us. I have had to engage with audiences
This year’s Global Music Report around the world.
explores how music has become truly As this journey continues, we must
global – more so than ever before. ensure the right environment is created
Through the work and dedication of to make this success sustainable for
artists, record companies and their the future; we must continue to work
partners, music from vibrant and to establish a music ecosystem that is
diverse regions is being sought out healthy and open to all, where music is
and loved by fans in every corner of valued and respected. PLÁCIDO DOMINGO
the world. CHAIRMAN, IFPI
Copyright © 2019 The Nielsen Company (US), LLC. All Rights Reserved.
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY CONTENTS 5
Contents
State of the Industry
8 Global Charts
Global Music
Market 2018
in Numbers
+9.7%
Global revenue
+32.9% Growth in
growth paid streaming
revenues
+34.0%
Growth in
46.9%
Streaming
overall streaming share of global
revenues revenues
-21.2% Download
-10.1%
Physical
revenue revenue
decline decline
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY INTRODUCTION 7
Introduction
Music becomes truly global
usic has truly become global – Korea fuelling growth. The Middle East
M in ways never before imagined. and North Africa are now commanding
From the South Korean boy attention. Crucially, these territories,
band, BTS, capturing the hearts of fans and the artists emerging from them,
from Seoul to Rio, to the Colombian are already reaping real benefit. Record
reggaeton singer, J Balvin, taking his place company investment, local partnerships
amongst the global pop elite, to emerging and increasing availability of mobile data
stars like Mali-born French artist, Aya have given rise to a rich and diverse global
Nakamura, showing language is no barrier landscape with fans in each territory
to reaching beyond home borders. The accessing music through a unique and
global music community has never been evolving combination of formats and
more connected, and fans and artists alike services. As this continues, revenue is FRANCES MOORE
are seizing the opportunities of this new returned to the artists, the cultures and CHIEF EXECUTIVE, IFPI
era to enjoy and share the music they love, the communities to spark the next cycle
no matter where it comes from. of creative endeavour.
We have now seen four consecutive Record companies continue to hone
years of growth, driven by great music their partnerships with artists, offering
from incredible artists in partnership expertise and resources on the ground
with talented, passionate people in record to help navigate these landscapes and
companies around the world who help bring their music to their fans in the most
them realise their creative and commercial effective and affecting ways.
potential. Today, this partnership takes There is still much to be achieved to
many forms, with artists drawing on the ensure that these positive developments
extensive expertise and resources record continue at pace. We are campaigning for
companies provide. Ultimately, it is forged music to be fairly valued in all its forms.
on the simple premise of a shared love of We are working for music copyright to
music and mutual respect. be recognised and respected around
One of the most exciting aspects of the world, and we remain committed to
this global growth is the regions driving establishing a level playing field when it
it. For the fourth year in a row, Latin comes to negotiating a fair deal for those
America has seen the largest regional who create music. Above all, we are
growth, with countries like Brazil leading working to ensure that music continues
the way. Asia has become a world player, on its exciting, global journey.
with markets like China and South
8 GLOBAL CHARTS IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY
Global
Charts
The most popular artists
and best sellers of 2018
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY GLOBAL CHARTS 9
01 02
Drake BTS
03 04
Ed Sheeran Post Malone
05 06
Eminem Queen
07 08
Imagine Ariana
Dragons Grande
09 10
Lady Gaga Bruno Mars
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY GLOBAL CHARTS 11
01
01
Camila Cabello
19.0 Cast of 'The Greatest Showman' 3.5
(feat. Young Thug)
The Greatest Showman (OST)
Havana
02 02
Drake 15.3 BTS 2.7
God's Plan Love Yourself 結 'Answer'
03 03
Ed Sheeran 14.9 BTS 2.3
Shape of You Love Yourself 轉 'Tear'
04 04
Ed Sheeran 13.5 Lady Gaga 1.9
Perfect A Star Is Born (OST)
05
05
Maroon 5
11.9 Johnny Hallyday 1.7
(feat. Cardi B)
Mon Pays C'est L'amour
Girls Like You
06
06
Luis Fonsi
11.8 Ed Sheeran 1.3
(feat. Daddy Yankee)
Despacito
÷
07 07
Tia Ray 10.9 Queen 1.2
Be Apart Bohemian Rhapsody
08
08
The Chainsmokers
10.0 P!nk 1.2
& Coldplay
Beautiful Trauma
Something Just Like This
09
09
Marshmello
9.6 Eminem 1.0
& Anne-Marie
Kamikaze
FRIENDS
10 10
Post Malone Cast of 'Mamma Mia! 0.9
9.2
(feat. Ty Dolla $ign) Here We Go Again'
Psycho Mamma Mia! Here We Go Again (OST)
12 GLOBAL MARKET OVERVIEW IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY
Global
Market
Overview
Dynamic, diverse markets
drive global growth
In 2018, the global recorded music market grew This growth was predominantly driven by a 32.9%
by 9.7%. It is the fourth consecutive year of global rise in paid streaming, that now accounts for 37.0%
growth and the highest rate of growth since IFPI of total revenue.
Fuelled by the continued investment from
began tracking the market in 1997. record companies, the global story is one of
dynamic, diverse markets evolving rapidly and
finding routes to growth. Within the top 10, some
of the fastest growing markets are in Asia and Latin
America (South Korea, Brazil) with Asia becoming
the second largest region for physical and digital
music combined for the first time.
Artists from these evolving markets are also
seizing the opportunities to break out to a global
audience. Working in partnership with record
companies and supported by their resources and
understanding of the different music landscapes,
artists are enjoying global success. As they and
their music resonate with fans in different parts of
the globe, revenue is returned to help fuel the next
creative cycle.
As these high-potential markets continue to
develop and seize these opportunities, it is crucial
that the right foundations are in place to support
their sustainable, long-term development. Music
copyright must be recognised and respected, and
the music being enjoyed in its increasingly varied
formats must be valued fairly.
25 0.6
0.7
Global Recorded Music
0.8
Industry
1.0
Revenues 2001-2018 (US$ Billions)
1.0
20 1.0 0.4
25 0.6 1.2
0.4
0.7 0.4 2.7
1.3 0.3
0.8 1.0 1.3 0.3 0.3 0.3 0.4 2.4
15 1.0 0.3 2.3
20 1.0 1.4 1.5 1.6 1.8 4.7
0.4
1.2 1.9 2.0
23.3 5.2
0.4
21.7 18.1 16.4 5.6
0.4 2.7
10 20.0 19.4 14.2 1.3
12.0 2.3
10.5
1.3 0.3
9.0 0.3
8.3 0.3
7.7 6.8
0.3 0.4
5.8 2.4
15 6.0
0.3 2.3
1.4 1.5 1.6 2.6 4.7
1.8 1.9 2.0
23.3 3.2 5.2
5 21.7 3.8 5.6 8.9
10 20.0 19.4 18.1 16.4 14.2 12.0 4.0 2.3
2.0 10.5 9.0 8.3
4.3 7.7
4.4 4.3
6.8 5.8 6.7
3.4 3.7 3.9 6.0 4.7
1.0 2.7 2.9 2.6
0.4 0.1 0.4 0.7 1.0 1.4 1.9
0 0.2 0.2 0.3 0.4 3.2
5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
3.8 2016 2017 2018
8.9
4.4 4.3 4.0
Total revenue 2.0 3.7 3.9 4.3 6.7
1.0 2.7 3.4 4.7
$US billions 23.9 22.4 20.8 20.8
0.4
20.2 19.6 18.4 17.1 16.0 15.1 15.0 15.1 14.8 14.3
1.9
14.8
2.9 16.2 17.4 19.1
0 0.1 0.2 0.2 0.3 0.4 0.4 0.7 1.0 1.4
Physical Digital
2001 (excluding
2002 streaming)
2003 2004 Streaming
2005 2006Performance
2007 rights
2008 Synchronisation
2009 2010 revenues2012
2011 2013 2014 2015 2016 2017 2018
Total revenue
$US billions 23.9 22.4 20.8 20.8 20.2 19.6 18.4 17.1 16.0 15.1 15.0 15.1 14.8 14.3 14.8 16.2 17.4 19.1
2018 Figures
by Format
Global recorded music revenues totalled
US$19.1 billion in 2018, a 9.7% increase on
2017 and a faster rate of growth than the
previous year (+7.4%)
Digital Physical
revenue revenue
↑21.1% ↓10.1%
Overall digital revenues grew by 21.1% to US$11.2 Physical format revenue saw continued decline
billion in 2018, crossing the US$10 billion mark for in 2018, dropping by 10.1% and now accounting
the first time ever and now accounting for 58.9% of for around a quarter of the total market (24.7%).
total recorded music revenues. Within this format, As in the previous year, the majority of markets
the picture was varied with streaming pushing saw a decrease in physical format revenues, but a
growth up strongly (increasing by 34.0% to US$8.9 small number of markets bucked the trend, posting
billion), while downloads saw a decline of 21.2%, growth (India +21.2%; Japan +2.3%; South Korea
dropping to 7.7% of the total market. +28.8%), and physical revenues still constitute
Paid audio streaming in particular was again a significant percentage of the market in some
a key driver (+32.9%), with almost all markets countries (representing 71%, 47% and 35% of the
reporting growth in this area. Digital now makes up market in Japan, Poland and Germany respectively).
more than 50% of revenue in 38 markets. Revenues from vinyl also sustained their upward
trajectory, posting growth for the thirteenth
consecutive year, growing 6.0% and maintaining a
Performance 3.6% share of the overall market.
rights revenue
↑9.8% Synchronisation
revenue
Revenues from performance rights – use of recorded
music by broadcasters and public venues – climbed
in 2018, seeing an increase of 9.8%. Totalling US$2.7
↑5.2%
billion, performance rights revenue represents Synchronisation – the revenue from the use of music
14.0% of total recorded music industry revenues. in advertising, film, games and TV – posted growth
of 5.2%, a more modest rate than the previous year
(14.6%) but maintaining a 2.3% share of the total
music market.
16 2018 FIGURES BY REGION IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY
2018 Figures
by Region
↑11.7%
Asia and
Australasia
↑16.8%
There was strong growth in digital (+26.8%), driven
by paid audio streaming (+29.5%), which offset a
continued decline in downloads (-7.1%). China, a
new entrant in the global top 10 the previous year,
rose to seventh position in 2018. The region’s largest Latin America
market, Japan, also saw growth (3.4%) following a
decline of 2.9% the previous year. This was driven
by gains in streaming (+32.6%) coupled with a
return to growth in physical revenues (+2.3%).
South Korea (+17.9%) and Australia (+11.0%) also Latin America grew by 16.8%, once again the
recorded notable growth. highest rate of growth globally. The region reflected
global trends with declines in physical revenue
(-37.8%) and downloads (-45.0%), but strong
results in streaming (+39.3%). Brazil, the largest
market in Latin America, continued its upward
trajectory, increasing by 15.4% and recording one
of the highest rates of growth in digital in the top 10
markets (38.5%). Chile, Mexico and Colombia also
saw notable gains, increasing by 16.3%, 14.7% and
9.0% respectively.
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY 2018 FIGURES BY REGION 17
↑0.1%
Europe
↑14.0%
markets, with Sweden and Norway growing 2.8%
and 1.7% respectively, and strong growth in markets
such as Austria (+20.0%) and Ireland (+7.5%).
Germany was the only top 10 European market to
see a decline in revenues (-9.9%), partly due to North America
its continued transition away from a physical-led
market, and was overtaken by the UK (+3.1%) as the
largest market in the region.
Overall, paid streaming in Europe rose by
29.2%, whilst physical revenues fell by 19.4% and North America recorded another year of double-
downloads by 24.3%. Performance rights revenue digit growth, increasing by 14.0%, albeit at a
for the region dropped by 6.7%, the steepest slightly lower rate than in 2017 (+17.1%). Strong
decline in this area of any region, contributing to streaming growth (+33.4%) offset the decline
the territory’s overall slower growth. in physical revenues (-22.0%), which showed a
markedly faster rate of decline than the previous
year (-4.3%). Whilst Canada remained flat (+0.5%),
the US posted an increase of 15.0% and maintained
its position as the world’s largest music market. A
predominantly digital market (74.2% of recorded
music revenues), the fastest growing format in the
US was paid streaming, which accounted for well
over half (59.4%) of digital revenue.
18 THE DYNAMIC NATURE OF HIGH-POTENTIAL MARKETS IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY
The Dynamic
Nature of
High-Potential
Markets
Record companies’ increased ‘A WILLINGNESS TO INVEST FOR THE
levels of investment – alongside LONG TERM’
the continuous geographical roll- Adam Granite, Executive Vice President, Market
Development, Universal Music, says: “Every market
out of infrastructure – is driving requires a unique approach, but I think what’s most
the dynamic development of encouraging in all these high-potential markets is
high-potential markets. As part that local repertoire is growing significantly.”
of this process, record companies The one common thread linking the territories,
are taking their artists’ music to an he continues, is “a determination to find the best
ever-expanding and truly global artists, the importance of our local teams, and a
willingness to invest for the long term.”
audience, whilst fans are benefiting Jeremy Marsh, Chief Global Marketing
from easy access to an increasingly Office, Warner Music, says: “Many predicted the
diverse catalogue of licensed music, globalised world of streaming would see Anglo
discovered and developed around repertoire flood other markets. But while
the world. international opportunities for Anglo artists have
increased, we’re also seeing a huge flow of music
back the other way. We’ve seen this with music
For recorded music, a high-potential market from markets such as Latin America and Korea, and
is typically classed as a country or region with we’re starting to see it with music from regions like
a significant population, measured in tens, Africa too.”
sometimes hundreds, of millions. They are markets
that are becoming increasingly connected, and
increasingly digital, but where consumption,
particularly the legitimate and monetised Every market requires
consumption, of music is significantly lower, per a unique approach,
capita, than would be expected in a mature and but I think what’s most
developed territory. Treated as a group, these
markets, even with modest penetration, could encouraging in all these
provide a major uplift to the global streaming high-potential markets
population. Led by record companies, the process is that local repertoire is
of growing high-potential markets is one that is
providing substantial benefits and opportunities growing significantly.
for artists and fans alike, cross-pollinating music
and consumers around the world by channelling ADAM GRANITE
Executive Vice President, Market Development,
resources and focus on local territories. Universal Music
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY THE DYNAMIC NATURE OF HIGH-POTENTIAL MARKETS 19
These international success stories contribute reflects on the region’s rich musical heritage:
to a virtuous circle which leads to the emergence “We have always had great local music: tango in
of even more local artists. Zabala says: “When Argentina; flamenco in Spain; bossa nova in Brazil;
Latin America delivers mariachi in Mexico; vallenato in
global hits, often in our own Colombia; salsa in the Caribbean.
language, reflecting our own “What is happening now
culture, it creates a feeling is that access to streaming is
16.8%
of community and of pride allowing this to be celebrated
– among our artists and also even more – people are able to
among their fans; they want really take a deep dive into Latin
to be part of this movement.” music and that’s great for the
Far from Latin music revenue growth in artists and great for the culture.”
being a new phenomenon, Latin America
Afo Verde, Chairman/CEO
of Sony Music Latin Iberia,
‘BRAZIL HAS THE POTENTIAL TO BE AN Latin America and Iberian Peninsula, also picks out
INCREDIBLE EXPORTER OF MUSIC’ Brazil as an especially dynamic market. “I think it
Paid streaming not only grants the chance to has been a sleeping giant for years and years, and
discover new music but also to monetize it fairly. the reality is that it’s a country with more than
Sony’s Verde notes that Brazil 200 million people. And it’s a
is one of the best examples. country that loves music.
He says: “Without any doubt, “It is now more open and
there was always huge music connected, and you are seeing
15.4%
consumption in Brazil – it’s a more collaborations between
country that truly has music Brazilian artists and Spanish
at its heart – but, due to artists and Anglo artists. For
copyright infringement, this the first time, I feel Brazil has
was never recognised. When
revenue growth in the potential to be an incredible
consumption began to take the
Brazil exporter of music from the
form of streaming, the results Latin world. As part of that, we
were impressive. We’ll see the are investing a lot in new artists
country go from strength to strength and this will and new repertoire, that is the key to discovering
allow us to continue to support the artists in Brazil.” stars who can be on the world stage.”
Jesús López, Chairman & CEO, Universal Music
‘WE HAVE A MASSIVE FOCUS ON GROWING He also highlights the efforts being made to
DOMESTIC REPERTOIRE’ nurture local artists. “We have
Simon Robson, President, a massive focus on growing
Asia, Warner Music, explains domestic repertoire. If you look
how record companies work at the evolution of digital music
11.7%
with digital service providers markets in Asia, the majority
(or DSPs) to help further grow started with a high proportion
the market in key developing of international repertoire being
territories, encouraging consumed. That was because
fans to move towards paid
revenue growth in early adopters tended to be urban,
subscriptions: “We work as
Asia & Australasia highly educated, well-travelled
closely as possible with all English speakers.
services to help raise the profile of streaming in “We’re now seeing that, as streaming finds a
these countries. That might mean doing events broader audience, there is more interest in domestic
with them, or getting our artists involved in music. We’re trying to help meet that demand by
promotional material. It’s an education process investing heavily in local artists and repertoire.”
and one that we’re keen to be part of.”
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY THE DYNAMIC NATURE OF HIGH-POTENTIAL MARKETS 21
17.9 %
He highlights the importance of short video
content in making music go viral. In fact, the power of
short form video and its potential for Western artists
came together last year in one of Sony Music’s more
revenue growth in quirky success stories. Chan explains: “Olly Murs’ song,
South Korea That Girl, was covered by a young boy in a small town,
trying to impress a girl. His video went viral online. It
'PLAYLISTS HAVE NO BORDERS' boosted Olly’s streaming rates and That Girl went on
South Korea is a market in the process of shifting from to be number one on QQ for three months.” Chan goes
‘potential’ to ‘power player’, driven by the phenomenon on to explain that Murs has responded to this, catching
of K-pop and artists like BTS and BLACKPINK. the attention of the media, who are keen to interview
Spotify has yet to launch in the territory (the him when he visits the country next.
dominant streaming service Meanwhile, he believes that
is local DSP, Melon), but its Chinese artists looking to break
playlists are evidence that the outside of the territory shouldn’t
country’s domestic repertoire is always adapt their style to that
travelling across the world. of Western artists: “Artists often
David Erlandsson, the choose to sing in English in order
company's Data Scientist, says: to break overseas, but English is
“From day one, K-pop has been not their first language, so they
one of the key focus genres cannot compare or compete with
for our editors in Singapore. Western artists in that sense. I
These playlists were originally believe there is another angle.
created for the South East Asian Like we have seen in Korea, there
markets, but, as playlists have is an opportunity to introduce
no borders, their popularity has Western audiences to C-Pop, to
since travelled around the world get them to understand and fall
and there is now a more global in love with the genre and allow
focus on the genre. our artists to find a global stage
“In 2018, markets like Peru, that way.”
Canada, France and Turkey Denis Handlin, Chairman &
all saw more than 100 million CEO, Australia & New Zealand
streams of K-pop artists.” and President, Asia, Sony
Music Entertainment, adds
that record companies need
multiple approaches to achieve
success in Asia. He says: “It
7th
would be flawed to take the
one same approach to all
markets in the region. Through
our relationships with local
China’s market partners across all aspects of the
position globally industry, we do a lot of listening
and learning. Every country is
‘THERE IS AN OPPORTUNITY TO GET unique, with its own culture and each country’s fans
WESTERN AUDIENCES TO FALL IN LOVE WITH want something different."
C-POP’'
Andrew Chan, Managing Director of Sony Music in ‘WE RESEARCH, WE LEARN, WE DON’T COME
China, says: “The market here is very exciting as we IN WITH ‘OUR’ MODEL’
are undergoing constant digital transformation. Alfonso Perez Soto, EVP, Eastern Europe, Middle
Importantly, paid subscribers are growing, thanks to East and Africa, Warner Music, says: “The younger
the efforts of the whole industry – but we are still only demographic in territories like Africa, India, the
at around 33 million subscribers, out of a population Middle East and Eastern Europe are all embracing
of 1.4 billion.” technology and getting more connected every day.
In terms of the flow of repertoire, in both directions, That’s something that will completely change the
Chan believes this is the start of a journey. “More and scope of our industry.”
more international artists are being invited onto talent He highlights the MENA region as especially
shows as judges – and sometimes contestants – so dynamic over the last 12 months. “Out of the blue it
there is an increase in the number of Western artists became one of the most exciting and competitive DSP
wishing to come to China.” markets, going from nought to 100 miles per hour in
The Global
Story of
Local Genres
Aligned with the borderless power of
streaming, the increasingly global reach and
mindset of record companies has brought
about a major shift in the opportunities for
artists from all over the world.
On one hand, individual territories are
developing their own stars, artists who use
their own voices to find their own audience
and command the spotlight as much as
traditionally dominant repertoire from the US
and UK. They are being prioritised by labels’
local offices and connecting more than ever
with their domestic fans.
On the other hand, they are looking beyond
their home countries with more ambition
and confidence than ever, encouraged and
propelled by record companies who know
that the next world-straddling track or
breakout superstar can come from anywhere.
OFFICIAL MUSIC
INDUSTRY CHARTS,...
...meaningful market research data and full dashboard services for Austria, Belgium,
France, Germany, Italy, Japan, Portugal, Spain, Switzerland and the Netherlands
helping the music industry make valuable decisions.
GfK Entertainment
Experts in Charts and Insights
Case
Study
Aya
Nakamura
French rap finding its global voice Alain Veille, Managing Director of Digital, Warner
Music France, explains how Warner was quick to see the
One example of an artist blowing up in her home territory, wider appeal of her music: “It resonated outside of France
while also starting her international journey, is Warner very quickly. Our colleagues in neighbouring countries
France-signed Aya Nakamura. were asking us about her story; they could feel there was
Born in Mali, Nakamura moved to a suburb of Paris something happening.”
as a baby and grew up immersed in - and influenced Veille describes how his team had early discussions
by - both cultures. She started making music as French with surrounding territories, helping them kick-start their
urban music was finding its voice and moving into the own campaigns: “The spread of awareness dovetailed
mainstream. with our strategy of establishing a core fanbase in Aya’s
Thierry Chassagne, President, Warner Music France, community, taking her mainstream throughout France,
says: “The popularity of French rap was driven in part by and then, working with offices on the ground, targeting
streaming, but also by demographics. We have strong territories where the buzz was building.”
Caribbean and African communities here that have been Recognising each market’s inherent differences,
the driving force behind much rap music. campaigns were tailored to build on Nakamura’s already
“At the beginning of the strong roots, whilst adding a
[Aya Nakamura] project, local flavour. Veille describes
especially on the digital one example: “In Germany, we
aspects, we focused on these Djadja went to number recorded a version of Djadja
communities, before expanding one here in its first with a female hip-hop artist
into the wider market. week and is the most called Loredana, who shares
“It was important to have similar values, and is a strong,
this community, her community, audio-streamed track independent woman. That
behind her. She is a very by a woman in France version got accepted by the
empowered woman, and the so far in 2019. streaming platforms and was
idea that somehow the record added to influential German
company could lead the way THIERRY CHASSAGNE
rap playlists.”
without tapping into her roots President, The work paid off. German
and her fanbase, that she’d built Warner Music France radio picked up the track,
herself, would have been wrong eventually choosing to play the
– and would not have worked.” original over the newer, German version.
Nakamura’s first album, Journal intime, was released Djadja has now achieved over 190 million audio
in 2017, reaching number six in the French charts and streams and 315 million video streams worldwide, and
achieving Gold certification. in three territories – Netherlands, Germany and Belgium
Things moved up a gear for her second, self-titled – the numbers are matching what’s been achieved
album, Nakamura – and especially its lead single, Djadja. in France.
Chassagne explains: “It was the perfect situation of Ultimately, Nakamura’s music and ability to connect
the set-up being created by the first album, and then with her fans, coupled with the support and backing from
the second album being preceded by such a big hit. her label, is allowing her to reach an increasing number
Djadja went to number one here in its first week and is of people around the world, as Chassagne explains: “It’s
the most audio-streamed track by a woman in France so a true collaboration within a global structure. We know
far in 2019.” the artist very well, so we can contribute that insight and
Nakamura’s appeal was such that Warner Music drew understanding, we bring the artist’s story. And, of course,
on its global network and began to look for opportunities our colleagues know their territories – their tastemakers,
for the artist outside of her home country. their media, they can recommend collaborations and so
the project is amplified globally.”
Case
Study
George
Ezra
Authentic UK talent making global waves natural wit and irreverence, something that comes across
effortlessly in his relationship with his fans.”
George Ezra is undoubtedly one of the biggest breakout It was this desire to allow Ezra’s personality to shine
UK artists of the last five years. With his distinctive through that led to the idea of developing content that
baritone voice and varied musical influences, together went beyond his music.
with his authentic, honest approach to sharing his “George is a big podcast fan and came up with the
music, the Columbia-signed artist has won fans around idea of producing a series of podcasts where he holds
the world. conversations with a range of different musicians (guests
Columbia’s Head of Marketing, Alex Eden-Smith, included Elton John, Nile Rogers and Ed Sheeran). We
explains how, when first were really keen to support
working with Ezra, his musical him and made it a centrepiece
talent and authenticity formed of the campaign. It allowed him
a key strand of the label’s initial Alongside getting his to not only get his personality
strategy: “It was very important music out to as many across but also to bring in the
that he wasn’t seen as just people as possible, the fans of other artists and bring
another singer-songwriter. them back to his music. It's an
He’s an incredibly talented guy goal was to continue engagement loop, if you like.”
with a really distinctive voice; to highlight his Podcasts are just one of
the sole aim had to be to bring personality, his natural the tools in a kit that has had to
that out.” expand exponentially to meet
Ezra’s first single, Budapest, wit and irreverence, the demands of a new kind of
reached No. 3 in the UK charts, something that comes audience, explains Eden-Smith:
and made the Top 40 in the across effortlessly in his “You have to constantly think
US. The single was followed about the brand-new George
by Ezra’s first album, Wanted relationship with Ezra fan who heard their first
On Voyage, which topped the his fans. song yesterday; what’s their
charts in the UK, broke the Top experience going to be? For
20 in the US and went Top 10 in ALEX EDEN-SMITH them it’s a discovery, and you
multiple countries. Global sales Head of Marketing, have to give them ways of
Columbia
stood at just over two million in finding out who George is.
March 2019. “Ultimately, the most
With one album under his belt, and a steadily growing important thing for us was to trust George’s instincts
fanbase, Columbia, together with Ezra, began to plan for — to enable him to create the music he wants to,
the follow-up. Staying At Tamara’s, was released in March whilst finding the tools to help him reach a bigger
2018. It reached No. 1 in the UK where it was also the audience. The conversation was never about making
biggest-selling artist album of 2018. him something he’s not, but about celebrating
Eden-Smith describes the approach to the second and promoting all the best sides of George.”
campaign: “We continued to highlight his personality, his
Case
Study
J
Balvin
Pioneering Latin Music fourth album, Energía, released in 2016], and materialized
with Mi Gente [released in 2017 and appearing on 2018
Trailblazing, Medellín-born, Colombian artist J Balvin has album Vibras].”
pioneered Latin music’s explosion onto the global stage. It was an approach that proved massively successful,
Working in partnership with his record label and pushing Balvin to new heights and huge international
manager, Balvin has captured a global audience with his success. In June 2018, Balvin became the most listened to
unique sound, both through his solo releases and a string artist globally on Spotify, and in September he became the
of high-profile collaborations with artists such as Cardi B, first Latin artist to reach one billion streams on Apple Music.
Beyoncé and Justin Bieber – all whilst staying true to his This accolade was followed two months later by a Latin
Latin roots. GRAMMY in the Best Urban Album category for Vibras.
Angel Kaminsky, Executive Vice President, Latin Kaminsky points to Balvin’s work ethic and strong
America & Iberian Peninsula, sense of self as an artist as key
Universal Music, explains how factors in his success: “He sets
the relationship began: “I first his own rules, he knows what he
met J Balvin in 2012. I travelled He really has a vision to wants. He always says, ‘Believe
to Bogotá to meet this artist who me. I know where I’m going.’ and
was big in Colombia and was take the genre global I say, ‘Okay, we'll follow you.’
also starting to create a big buzz without the need to “He leads with artistic and
in the rest of the region. sing in English. He’s creative direction and we help
“I was immediately struck by him to realise both his short
his creativity, his artistic ability committed to being term and long-term objectives;
and his impeccable work ethic. a global artist while we provide him with an array
He’s such a genuine person and staying close to his of information from data and
this translates to his music and analytics to collaboration
even to the vibes he passes on roots. I believe he has opportunities, but at the end
to other artists and, of course, to accomplished this and of the day it’s his vision and his
his fans.” much, much more. instincts that drive us.”
Working closely as co- This attitude is reflected
managers in partnership with ANGEL KAMINSKY
in Balvin’s decision to fly the
Balvin’s manager, Rebeca Executive Vice President Latin America flag for his mother-tongue by
León, Kaminsky describes the & Iberian Peninsula, Universal Music continuing to sing in Spanish,
strategic process behind Balvin’s despite offers of high-profile
shift from local favourite to global star: “At first, there was a English language-based collaborations.
focus on breaking him in Latin America, Iberia and the US “There’s so much that makes J Balvin special”, says
Latin market. We accomplished this with his hit singles Ay Kaminsky. “He really has a vision to take the genre global
Vamos and 6 AM in 2014 and 2015. without the need to sing in English. He’s committed to
“The next step was to push the project on a global being a global artist while staying close to his roots. I
scale. This started with lead single Ginza [from Balvin’s believe he has accomplished this and much, much more.”
The Value
of a Label
‘THIS IS AN ERA OF INVESTMENT’ Jeremy Marsh, Chief Global Marketing Officer,
Record companies are both the spark and the Recorded Music, Warner Music, says: “This is
engine, igniting and driving music, working definitely an era of investment: investment in artists;
to discover and develop artists around the investment in staff; investment in infrastructure.
world and connect them to fans everywhere in We’ve invested in companies and teams such as
unprecedented ways. [major merch company] EMP, [youth media brand]
A dominant feature of the return to growth UPROXX and [multimedia/production studio] The
in recent years has been the expanded levels of Firepit – all of which increase the ways that we can
investment record companies are making in their partner with artists.”
offerings to artists, in their people and in their Glen Barros, COO, Concord Music, talks of both
global presence. Record companies are investing a “human and financial energy” returning to record
more than one-third of their global revenues, or companies, a new cycle in which resources become
US$5.8 billion, in Artists & Repertoire (or A&R) dynamic and a contributor, not simply ballast in
and marketing each year, to break, develop and a storm. He says: “You ally it with passion and it
support artists. becomes a major factor in helping connect artists
Dennis Kooker, President, Global Digital with the widest possible audience.”
Business & US Sales, Sony Music Entertainment, ‘IT’S THE PASSION’
says: “The most obvious impact the streaming- Not only has increased investment allowed record
driven growth has had on record companies is companies to evolve their infrastructure and
that it has allowed us to be more aggressive with enhance their global footprints, it has also enabled
investment, specifically to invest substantially the industry to empower the vibrant, passionate
more in things that directly support artists.” people who are the bedrock of the business.
Ole Obermann, Chief Digital
Officer Executive Vice President,
Business Development, Warner
Music, says: “The DNA at Warner
Music means that everyone in
the company is entirely focused
on working for the artists on
our roster. We want our artists
to be able to focus on their art,
so we take care of running the
business. There’s a dedication
to that goal that isn’t matched
by other players in the music
ecosystem. Only a record label
has that focus and capability and
the necessary belief to break and
support artists.”
IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY THE VALUE OF A LABEL 31
Artist
follow her on socials, and so on. There are so many That amplification can come via a range of in-
different touch points, and the job of the label is to house technologies, skills and platforms, all at the
identify the mix that’s right for our artist and create artists’ disposal. Gracey gives some examples: “We
a meaningful connection between artist and fan.” have video commissioners, stills commissioners;
Gary Kelly, EVP/Chief we have designers who do
Revenue Officer, Interscope everything from logos to a
Geffen A&M Records, Universal complete range of campaign
Music, highlights another factor The most obvious impact assets. Then we have the content
in the new ‘much-more-than- the streaming-driven team: directors; producers;
music’ content economy: “Artists editors; plus, a photographic
are always on, and they are growth has had on studio and a recording studio.
everywhere. We have mirrored record companies is that “All of which means we
that approach as a company it has allowed us to be can do TV commercials,
and have built up teams that can vertical videos, music videos,
handle that volume on a 24/7, more aggressive with acoustic recordings, podcasts,
truly global scale.” investment, specifically to voice-overs.”
‘THE LABEL MODEL CONTINUES TO Stu Bergen, CEO, International and Global
EVOLVE IN ORDER TO BE AN INTEGRAL Commercial Services, Warner Music explains:
PART OF THE SUCCESS FORMULA’ “Significant success, regionally or globally,
Today, artists have more options and easier routes remains rare and elusive. It takes a combination
than ever before when it comes to making their of great creative talent coupled with a passionate
music available. At the workforce to cut
same time, however, through the tens of
the landscape of thousands of releases
music markets globally Artists really benefit from each week. The label
is varied, complex having an infrastructure model continues to
and often highly evolve in order to be
competitive. Record to support them, backed an integral part of the
companies play a key by human resource and success formula.
role in helping them to expertise, that allows “A r t i s t s re a l l y
navigate this. benefit from having
genuine creative freedom. an infrastructure to
support them, backed
STU BERGEN by human resource
CEO, International and Global Commercial Services,
Warner Music and expertise, that
allows genuine creative
freedom. Artists should
be able to focus on their art. They shouldn’t need
to worry about organising their tour, trying to get
media coverage in Germany, or running analytics
on their streaming figures.”
It’s also worth noting the landscape into which a
single track is uploaded. Adam Granite, EVP, Market
Development, Universal Music, says: “As we see a
rise in DIY artists, there are just so many releases
every week. There’s so much noise out there. Even
for me as a consumer, there’s just too much music
to get my head around. That’s when you need a
label – to help an artist rise above, get noticed and
have a successful career. I’d say the value of a label,
in that regard, has never been higher.”
Joseph Cacciola, SVP, Global Research &
Analysis, Warner Music, says: “Here’s the thing:
what record companies can deliver is an army of
thousands of people constantly working on behalf
of their artists, calling the local streaming services,
with whom they have incredibly close relationships,
and saying, ‘Hey, what are you doing with this new
record?’ And, in my view, that’s what really helps
to gain impact on a global scale.”
Barros of Concord Music concludes: “You can
get financing, promotion, distribution, marketing,
PR, everything – all those services you can hire in.
But I think where record companies come into play
is that they are connected, these services come
in one package and they come with experience.”
He also believes that the concept of a team
(one company rather than a temporal collection
of separate, but not necessarily culturally united,
component parts) is one that brings more than
logistical advantages to the table. “A record
company is truly invested in an artist. An artist
wants a partner who really cares and is going
to put their time, their money, their energy and
their know-how into building a career alongside
that artist.”
Fostering Fair
Marketplaces so
Music Continues
to Thrive Five key elements
T
he global recorded music industry
continued to invest in artists, resources
and infrastructure even through a 15-
year period where revenues dropped by more
2. Copyright frameworks
for legal certainty 02
must be clear and provide
A legal framework that is both balanced and
clear must be in place to allow everyone to
understand how music can be used. That
framework must give right holders an adequate
than 40% in the face of widescale digital copyright level of protection through exclusive rights,
infringement. Through innovation and the licensing whilst allowing, in appropriate cases, clearly
of the widest range of digital music services, music defined and targeted exceptions to those rights.
markets around the world are now developing and Open-ended or ‘flexible’ exceptions, seen in the
growing, and music is reaching fans in new and laws of a handful of countries, do not provide
diverse ways. To ensure that the return to growth a sustainable solution. Instead, they create
is sustainable, and that emerging music markets uncertainty, are open to abuse and ultimately
are able to reach their full potential, the right public undermine the balance in copyright frameworks.
policy and legal framework must be in place. There Creativity, investment in artists and
are five key elements that, if fully established, innovation in the ways that music is distributed
will help dynamic, diverse music markets to thrive. are best supported by adequate and certain
legal frameworks.
05
they are free to determine how their rights are
used and by whom.
04
5. Adequate tools must
be available to prevent
music from being made
available illegally
4. Music must be licensed on As the online marketplace around the world
fair terms continues to evolve, so too do the challenges the
Music – whether physical or digital – must be music community faces in preventing music from
licensed on fair terms. Misapplications of online being made available illegally, and ensuring fans
liability laws (such as the so-called ‘safe harbours’) have access to a variety of licensed services.
have emboldened certain digital platforms to Music must have fair and effective ways to
claim that they are not liable for the music they tackle illegal services that seek to exploit the
make available. They use this as a shield to avoid work of artists and profit through large-scale
licensing music like other digital services do, copyright infringement.
resulting in unfair competition, distorting the For example, a growing number of countries
digital music market, and depriving all creators (now up to 32, including most EU Member States)
of fair returns for their work and investments. provide for ‘website blocking’ procedures where
Rules must ensure that all services engaging access can be blocked to websites distributing
in distributing music online, regardless of their copyright infringing content. These measures
mode of operation, negotiate licences with right can be highly effective and are emerging as a
holders on fair terms. global norm.
Other policies, like ‘notice and stay down’, can
help prevent the use of infringing works. Currently,
certain hosting providers, whose services are used
to store infringing works, may benefit from liability
privileges (also known as ‘safe harbours’). Under
‘notice and staydown’, providers may only benefit
from these privileges if they ensure that infringing
works do not reappear once providers have been
notified and have removed the infringing content.
However, even with access to website blocking
and other legal tools, right holders’ actions alone
are not enough to prevent unauthorised uses of
content. All intermediaries whose services are used
to infringe copyright – from hosting and access
providers, search engines, payment providers,
advertisers, to domain registers – should act as
diligent economic operators, have a duty of care
and should contribute towards creating a fair and
safe digital environment.
About IFPI
IFPI is the organisation that promotes the interests of the international
recording industry worldwide. Its membership comprises some 1,300 major
and independent companies in almost 60 countries. It also has affiliated
industry national groups in 57 countries. IFPI’s mission is to promote the
value of recorded music, campaign for the rights of record producers and
expand the commercial uses of recorded music in all markets where its
members operate
Photo credits
COVER PAGE 9
Clean Bandit photo by Rita Zimmermann Drake photo by Caitlin Cronenberg
Thalia photo by Uriel Santana BTS photo courtesy of Big Hit Entertainment
Sfera Ebbatista photo courtesy of Ed Sheeran photo by Mark Surridge
Universal Music Group Post Malone photo courtesy of Universal Music Group
Dua Lipa photo by Guerin Black Eminem photo by Craig McDean
Michael Bublé photo by Luke Dyson Queen photo by Lord Snowdon
Kris Wu photo by Chuang Xu Imagine Dragons photo by Eric Ray Davidson
Jennifer Lopez photo by Steven Gomillion Ariana Grande photo by Dave Meyers
Drake photo by Caitlin Cronenberg Lady Gaga photo by Collier Schorr
Pabllo Vitar photo by Pedrita Junckes Bruno Mars photo by Kai Z Feng
PAGE 3 PAGE 11
Photo courtesy of Plácido Domingo’s Camila Cabello photo by Dennis Leupold
management Drake photo by Caitlin Cronenberg
Ed Sheeran (1) photo by Mark Surridge
Ed Sheeran (2) photo by Bert Brett
PAGE 6 Maroon 5 photo by Travis Schneider
Animux photo by Jacob Zawaq Luis Fonsi photo by Omar Cruz
Jess Glynne photo by Nadine Ijewere Tia Ray photo courtesy of Warner Music China
Cesár Sampson photo by Thomas Rammerstorfer The Chainsmokers photo by Danilo Lewis
Marshmello & Anne-Marie photo courtesy of Warner Music Group
PAGE 7 Post Malone photo courtesy of Universal Music Group
Frances Moore photo by Graham Flack
IR.TENCENTMUSIC.COM