The IMS Business Report has been released. The report looks at the health of the dance music business over the past year. The impact of COVID-19 alters the outlook of the electronic music business in 2020, but there is a lot more to look at in the report from recorded music, downloads and more.
The shock headline is that the value of the business declined 54% to $3.4 billion after ten straight years of growth. $3.4 billion in value was lost from music festivals, down 78% year on year. This was largely driven by a drop in live revenue, but it shows that there is room for growth when events return. Given that events are slowly coming back in markets, 2021 won’t be a banner year for events and will likely be uneven in growth.
Skiddle data showing the value of festival tickets sold in March 2021 was more than the whole of 2020 combined, the value of festival tickets sold was up 3999% in March 2021 compared to the same period last year. Hopefully those events don't get cancelled again.
However, not all was terrible for the music business. Beatport saw 33% growth despite the overall downloads market declining by 16%. Techno and house remain the dominant forces on the platform. Dance music recorded music revenues broke $1 billion in 2020. This happened as global recorded music revenue grew 7% to $22 billion in 2020 and the electronic music share declined in the US by 11% and the UK by 2%. The report says that hip-hop’s share of recorded music has plateaued, while electronic music has leveled off around the world thanks to Germany and a few other markets. Vinyl sales were up 24% in 2020.
Live streaming took off with brands adding YouTube and Twitch subscribers, which helped supplement some lost income. Twitch registered 1.2m new followers for the top electronic music accounts.
Read the full report here.