A lot of the dance music industry has congregated in Ibiza for International Music Summit (IMS), a meeting of minds between people in all parts of the electronic music business. One of the highlights is the annual released of the IMS Report, which is a yearly look into how the industry is doing, looking at the data. One of the main takeaways is that after years of growth, the estimated value of the global electronic music industry seems to have potentially peaked and fallen 2% to $7.3 billion. Another main takeaway is that in North America, dance music as a share of the larger recorded music business fell, but there is an explanation.
In the US, dance music’s share of the overall recorded music business fell from 4% to 3.5% as the overall recorded business grew by 12.8%, which on its face is worrisome. But according to the report, this is because many of the hit songs are being classified as R&B or pop, which makes more sense, because that is what they are. The superstars are making big crossover tracks that are no longer pure dance tracks and shouldn’t be treated as such. The numbers are also seeing the same trends in Canada, Germany and UK.
However, there is good news in Asia as dance music continues to grow in popularity among individuals in Korea, China, Taiwan, Japan and elsewhere.
Though the overall value of dance music seems to have steadied this year and over the past few years, the report estimates it will grow to $9 billion in 2021, with growth in each of the four areas mentioned in the report – DJ earnings, recorded music, live & hardware & software.
There is good news elsewhere in the business. Hard & software is growing at nine percent a year. DJ earnings have started to grow again in 2017 and growth in live is continuing outside of Europe and North America, which seems to be a common theme. These are the markets for the most growth opportunities.
You can read the full report here. As with any long report (it is 29 pages), there is some interesting stuff mixed in between a lot of somewhat useless graphs and data. However it is worth checking out.