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From Spotify’s $7 billion payout in 2021 to the $25.9 billion global record industry revenue, it’s MBW’s weekly round-up

Welcome to music business worldwide‘s weekly roundup – in which we make sure you catch the five biggest stories to hit our headlines in the last seven days. The summary of MBW is supported by centtriphelping over 500 of the world’s best-selling artists maximize their income and reduce touring costs.


This week was a big week for stats as the global music business was treated to the release of two important series of numbers from two prominent music companies.

Yesterday (March 23) Spotify updated its Loud and clear Website revealing what artists have earned from their service over the past year.

A headline from the update: Spotify claims to have paid out $7 billion (for both released and recorded music) to music industry rightsholders during 2021 — an increase of around $2 billion over the year “Over $5 Billion” that Spotify previously said it will be paid out in 2020.

MBW dug a little deeper into Spotify’s new numbers and found some stunning stats, like these: Of the 8 million artists on the Spotify platform, 5.4 million — or just over two-thirds of the artists on the service — have fewer released as 10 tracks to date.

And from the 2.6 million artists on its platform with more than 10 tracks, according to Spotify, straight 165,000 Acts are popular enough to have more than 10,000 monthly listeners as well.

This week’s other startling numbers came from the global recorded music organization IFPI, whose Global Music Report revealed that the global recording industry was thriving $25.9 billion last year.

One of the highlights of the last IFPI report was that annual paid streaming revenue increased by $2.2 billion to $12.3 billion last year.

Ad-supported streaming platforms (including video services) generated $4.6 billion in 2021, according to MBW calculations based on IFPI numbers. That was over 31% year after year (vs $3.5 billion in 2020), an annual increase of $1.1 billion.

Elsewhere, Warner Music Group announced Monday that it had reached an agreement to acquire Middle East and North Africa-focused music distributor Qanawat Music.

The news confirmed a report by MBW last week that Qanawat would be the music industry’s next big-money buyout, with our sources telling us Warner Music Group was the favorite to take over distribution.

Also this week mushroom group and AEG presents unveiled a new management structure for Frontier Touring, while veteran US music executive Patrick Moxey signed a “global strategic alliance” with Warner Recorded Music for two major record labels in his new label group.

See what happened this week below…


1) SPOTIFY JUST RELEASED A STATISTIC THAT CHANGED EVERYTHING OF HOW YOU SHOULD ASSESS THE STREAMING ECONOMY

In the latest episode of music business worldwide‘s Talking Trends Podcast, MBW founder Tim Ingham responds to a new set of stats released by Spotify about what artists are making from its platform

These stats, released on Spotify’s Loud & Clear website, show that 16,500 artists generated over $50,000 in royalties from Spotify in 2021.

But Ingham argues that wasn’t Spotify’s most revealing data.

He instead focuses on a number buried at the bottom of the Loud & Clear website: Spotify estimates that around 200,000 artists are “professionals or aspiring professionals” on its platform.


2) “FREE” MUSIC STREAMING PAID THE RECORDING INDUSTRY 4.6 BILLION IN 2021 USD…AND MORE KEY INSIGHTS FROM THE LATEST IFPI GLOBAL MUSIC REPORT

According to the latest IFPI Global Music Report (GMR), the global recorded music industry witnessed a US$4.0 billion increase in wholesale revenues in 2021.

This was a significantly larger year-over-year increase in global industry sales than either 2020 (+$1.5bn) or 2019 (also +$1.5bn).

In fact, it was a bigger year-over-year increase than at any time in the past two decades, according to IFPI data.


3) CONFIRMED: WARNER ACQUIRES MIDDLE EAST QANAWAT MUSIC

Last week, MBW reported that Qanawat Music, which operates as a music distribution company in the Middle East and North Africa, would be the next major music acquisition.

Our sources tell us that Warner Music Group was the favorite to acquire Qanawat Music.

Warner announced on Monday (March 21) that it had reached an agreement to acquire the distributor.


4) MUSHROOM GROUP AND AEG PRESENTS NEW MANAGEMENT STRUCTURE FOR FRONTIER TOURING

Australia and New Zealand based concert promoter Frontier Touring has unveiled a new management structure for the company.

Frontier says the new structure was created to “ensure that Frontier’s legacy, mission and culture are preserved and nurtured” following the passing of founder Michael Gudinski in March 2021.

Frontier Touring was founded in 1979 by Michael Gudinski and is part of the Mushroom Group. It is one of the most well-known travel companies in the southern hemisphere.

In 2019, Frontier entered into a strategic joint venture with AEG Presents.


5) PATRICK MOXEY LAUNCHES LABEL GROUP, FORMS GLOBAL STRATEGIC ALLIANCE WITH WARNER FOR HELIX AND PAYDAY RECORDS

Patrick Moxey has formed a new label group and signed a “global strategic alliance” with Warner Recorded Music for two major record labels.

The agreement, which includes Payday Records and the newly formed Helix Records, will see Warner Recorded Music handle global digital distribution through its independent services arm, ADA Worldwide, and includes the option for the parties to co-sign new repertoire.

This news follows the recent announcement that the group’s music publishing division ultra music Publishing has agreed an alliance with Warner Music Group Warner Chappell music.


MBW’s Weekly Round-Up is powered by Centtrip, which helps over 500 of the world’s best-selling artists maximize their income and reduce touring costs.music business worldwide

https://www.musicbusinessworldwide.com/from-spotifys-7bn-payout-in-2021-to-the-global-record-industrys-25-9bn-revenues-its-mbws-weekly-round-up/ From Spotify’s $7 billion payout in 2021 to the $25.9 billion global record industry revenue, it’s MBW’s weekly round-up

Fry Electronics Team

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