The IMS Business Report was released today, the yearly report that takes stock of the business of the electronic music industry. It is usually released at IMS Ibiza in May, but given the current circumstances, IMS Ibiza did not happen and they delayed the report to try and get a better snapshot of the impact of the COVID-19 pandemic. The headline takeaway from the report is that the global value of the business is predicted to fall 56% to $3.3 billion in 2020. It had grown 2% to $7.3 billion in 2019.
However, there are plenty of other takeaways from the report as well.
90% of dance music consumption in the US came from streaming. It is the fifth most popular genre in the world and techno has remained the most popular genre on Beatport for the three years.
But looking at 2020 it has been some good and mostly bad. Millions have been raised through live streams like United We Stream, Boiler Room and Beatport Re:Connect. Seven of the most popular streams on Twitch in May were electronic.
However, as of April 20, 350 electronic festivals had been cancelled or postponed, with likely more added after. Clubs and festival revenue is expected to drop 75% from $4.4 billion to $1.1 billion. Artist income is predicted to drop 61% from $1.1 billion to $400 million. Streaming is expected to increase 10% to $1.1 billion, but that doesn’t offset the shortfalls in revenue elsewhere.
Get your copy of the full report here.