Global music collections rose 1.8% to hit a new record of €8.5 billion in 2018, marking the sector’s fifth consecutive of growth.
That’s according to CISAC’s Global Collections Report 2019 which, published today (November 7), reveals that music collections have risen 26.8% over the last five years and accounted for 88% of total collections (alongside Audiovisual, Literary, Dramatic & Visual Arts collections) in 2018.
In addition, music royalties from digital sources jumped 30% to €1.64bn last year.
A deeper dive into today’s report reveals the countries that saw the biggest digital growth were France (+€122m), the US (+€77m), Germany (+€33m), Japan (+€31m), Mexico (+€12m) and Canada (+€11m).
CISAC also reports that collection societies in several markets are seeing sharply increased collections from subscription video on-demand (SVOD) platforms such as Netflix and Amazon.
These include Australia’s APRA AMCO (SVOD up 41.8%); JASRAC IN Japan (up 60%); STIM in Sweden (VOD revenue doubled) and GEMA in Germany where VOD helped propel online collections.
Revenues from TV and radio dropped from 40.8% of music collections in 2017 to 38.8% in 2018, while revenues from Live and background grew 0.8%.
The top three countries for music collections in 2018 were the United States, France and Japan, respectively.
The world’s leading market for collections, the US, was up 2.5% to €1.9bn and accounts for 22.8% of global collections.
France saw 13.6% growth in 2018 and collections of €1bn, while Japan saw 2.6% growth and collections of €819m.
France and Japan account for 11.9% and 9.7% of global collections, respectively.
Five out of the Top 10 countries for music collections saw declines in 2018, including Germany (-5.9%), the UK (-1.2%), Italy (-1.8%), Canada (-0.5%) and Brazil (-23.1%).
The wider Latin America and the Caribbean region’s share of total collections was also down, from 6.4% in 2017 to 5.4% in 2018, while collections from Africa remained stable at 0.8%.
Elsewhere in the report, Asia-Pacific’s two main markets – Japan and Australia – account for close to 80% of collections in the region, and saw steady growth.
There were also steep increases in collections in other countries such as the Philippines, which experienced 37.1% growth, Taiwan (33.3%), India (27.5%), Vietnam (18%) and Indonesia (7.6%).
Another highlight from the report was that in 2018 there were five Top 20 markets with digital as their primary source of music collections, compared to zero just three years ago.
Of these five countries, Mexico has seen the biggest gains, having enjoyed five-year growth of 1,221%, with digital now accounting for nearly half the market (48.9%).
“This Report provides many reasons for optimism about our sector. Digital revenues show an impressive increase, have nearly tripled in the last five years and have enormous potential for further growth.”
Gadi Oron, CISAC
CISAC Director General Gadi Oron (pictured main) said: “This Report provides many reasons for optimism about our sector. Digital revenues show an impressive increase, have nearly tripled in the last five years and have enormous potential for further growth.
“More countries see digital income taking the top position of all revenue streams, which is an extremely positive sign.
“In a landscape of fragmenting income sources, the role of authors societies in generating monetary value for millions of creators has never been more vital.”
“Digital is our future and revenues to creators are rising fast, but there is a dark side to digital, and it is caused by a fundamental flaw in the legal environment that continues to devalue creators and their works.”
Jean-Michel Jarre, CISAC
Jean-Michel Jarre, CISAC President, added: “Digital is our future and revenues to creators are rising fast, but there is a dark side to digital, and it is caused by a fundamental flaw in the legal environment that continues to devalue creators and their works.
“That is why the European Copyright Directive is so momentous for creators everywhere. The Directive has sent an amazing, positive signal around the world, building a fairer balance between creators and the tech platforms”.Music Business Worldwide