A new report forecasts that the music industry will see a 75% plunge in live music revenue in 2020, due to COVID-19. And here's where the money you spend on streaming goes...Record labels typically receive the largest share of payment from streaming services, with royalty rates of 52%-58%. Goldman Sachs’s new “Music in the Air” report forecasts that, in 2020, the music sector will see a 25% drop in global revenue and a 75% plunge in live music revenue. The popularity of streaming platforms is ushering in a second digital music revolution, and Goldman Sachs Research expects global music revenues to almost double in the next 15 years. Thank you for subscribing to BRIEFINGS: our weekly email about trends shaping markets, industries and the global economy.Some error occurred. Worldwide . A surge in streaming subscriptions ... Read the latest Music in the Air report for more on the future of the music industry Access the report. WYNC, “A Great Wall of Staten Island to Ward Off Hurricanes” (August 2015) Insights . A SURGE IN STREAMING: IFPI Global Music Report 2020, Goldman Sachs Global Investment Research of concert fans said they would continue to watch live streaming events even after physical events resume City of Miami, “Miami Forever Bond Project to Mitigate Effects of Sea Level Rise” (March 2019) Client Login . More are listening to music that they already know and makes them feel positiveMusic video streaming in the US increased during lockdown, compared with the 8 weeks beforeUS streams for artists such as the Beatles and Fleetwood Mac increased in March, suggesting a shift towards catalogue listeningof 16-24 year olds in the UK consumed music on Facebook or Instagram in April 2020Increase the importance of social media for music discovery and promotion The habits we’ve formed during lockdown, such as relying on social media and rediscovering old tracks, are set to accelerate the online shift and propel global music revenues to new highs. China Daily, “Xiongan New Area’s master plan: highlights” (April 2018)
Streaming is turning up the beat for the music industry as global music revenue is set to reach record highs. Our Firm . The music industry has entered a new era of growth after nearly two decades of disruption. Paid subscribers 2019. Lisa Yang (pictured) & team, Goldman Sachs’ updated Music In the Air. Goldman Sachs shows how. Intergovernmental Panel on Climate Change (IPCC), “Climate Change 2014 Synthesis Report” (2014)
President’s Council of Economic Advisors and U.S. Department of Energy, “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages” (August 2013) KEY DRIVERS: IFPI, Goldman Sachs Global Investment Research Streaming will save it. Citizenship . We believe global music industry revenue will slump in 2020, largely due to the disruption of live events. Investment bank and research firm Goldman Sachs has forecast a strong rebound for the live industry in 2021, in its 2020 Music in the Air report. Before lockdown, 40% of daily music consumption happened at work or in the car “Copenhagen Climate Adaptation Plan” (2011) Houston Chronicle, “Harris County voters pass $2.5 billion flood bond one year after Harvey” (August 2018) Intergovernmental Panel on Climate Change (IPCC), “Climate Change 2014 Synthesis Report” (2014) IPCC, “Global Warming of 1.5°C” (October 2018) Careers . New York State Department of Environmental Conservation, “Coastal Storm Risk Management Projects” San Francisco Chronicle, “SF’s Embarcadero seawall measure wins easily” (November 2018) Goldman Sachs shows how. Climate-ADAPT, “Room for the River Waal – protecting the city of Nijmegen” (April 2016) Music streaming on TV and games consoles doubled during lockdown Climate-ADAPT, “Room for the River Waal – protecting the city of Nijmegen” (April 2016)
IPCC, “IPCC Special Report on Climate Change and Land” (August 2019)New York State Department of Environmental Conservation, “Coastal Storm Risk Management Projects” President’s Council of Economic Advisors and U.S. Department of Energy, “Economic Benefits of Increasing Electric Grid Resilience to Weather Outages” (August 2013) San Francisco Chronicle, “SF’s Embarcadero seawall measure wins easily” (November 2018) United Nations, “Factsheet: People and Oceans” (June 2017)WYNC, “A Great Wall of Staten Island to Ward Off Hurricanes” (August 2015)World Economic Forum, “Global Future Council on Cities and Urbanization” XinhuaNet, “China approves 2018-2035 master plan for Xiongan New Area” (January 2019)A TEMPORARY PAUSE: IFPI Global Music Report 2020, Music & Copyright, OMDIA, PWC, Company data, Goldman Sachs Global Investment Research Please refresh the page and try again. : Goldman Sachs Global Investment Research The popularity of streaming platforms is ushering in a second digital music revolution, and Goldman Sachs Research expects global music revenues to almost double in the next 15 years. Media Relations . of 16-34 year olds in the US reported using music streaming services in 2019 The average price of a standard music streaming subscription has remained unchanged at $9.99 for the past decade, while Netflix prices have risen around 5-8% every year over 2014-19. United Nations, “Factsheet: People and Oceans” (June 2017) OUR LONG TERM GROWTH OUTLOOK: Nielsen, BPI, IFPI Music Consumer Study 2019, Bandsintown We believe global music industry revenue will slump in 2020, largely due to the disruption of live eventsWe believe that 21% of smartphone users will be streaming music by 2030. What We Do . Spotify only operates in 79 markets, compared with Netflix at 194Only 8% of the global smartphone population paid for music streaming in 2019New streaming platforms, such as Amazon Music and ByteDance, are entering the marketAn increase in the number of streaming devices available, such as smart speakers, smartphones and tablets, is enabling easier music consumption City of Miami, “Miami Forever Bond Project to Mitigate Effects of Sea Level Rise” (March 2019) PRICES MAY RISE: Company data, data compiled by Goldman Sachs Global Investment Research The music industry has entered a new era of growth after nearly two decades of disruption. “Copenhagen Climate Adaptation Plan” (2011) But in the longer term, we expect a strong rebound as the crisis drives the offline to online shift. TUNING INTO NEW HABITS: Spotify, Nielsen, Media Research, Alpha Data, Goldman Sachs Global Investment Research ...followed by a strong rebound as the crisis drives the offline to online shift.The global music industry has been hit by the Covid-19 pandemic, but the slump is likely to be short-lived. WHO RECEIVES THE $10 YOU SPEND ON STREAMING?
IPCC, “Global Warming of 1.5°C” (October 2018) We believe revenue will slump 26% in 2020, largely due to the widespread disruption to live events.