Music, once considered a secondary entertainment medium, has now emerged as a powerhouse, overtaking the global box office in terms of revenues. This significant shift is revealed in a recent report that has sent shockwaves through the entertainment industry. The value of music sales and streaming has witnessed a remarkable doubling in just a decade, with revenues growing at an impressive 11% year on year. However, a concerning fact remains that despite this growth, artists are not reaping the full benefits.

Uncover the Hidden Truths of the Music Business

Spotify's Former Chief Economist's Insights

Will Page, the former chief economist of Spotify, has dedicated a decade to tracking the value of music copyrights and performing rights. These rights form the foundation of music's financial ecosystem, generating payments whenever music is played on various platforms. His research shows that the value of these copyrights has skyrocketed from $25 billion in 2014 to a staggering $45.5 billion in the present day. In contrast, the movie business, which was once a dominant force, now stands at $33.2 billion. The peak of global box office revenues was reached in 2019 at $41.9 billion, but since then, it has shown a declining trend.Music revenues do not directly translate to artists' pockets. A significant portion goes to multiple middlemen, and not all musicians are the copyright holders. Writing music holds the most value in terms of copyrights. The vinyl revival is another fascinating aspect. In the US alone, vinyl is set to bring in $1 billion for record labels in 2024, indicating that it is about to overtake CDs not only in the US but globally.There has been a notable shift in how music generates money. In 2023, live music performance revenues surpassed those of public performance licensing. Public performance licensing occurs when commercial premises pay a license to play music for their patrons. Digital streaming, unsurprisingly, has become the largest revenue generator, overtaking radio and other broadcasting. While broadcasting used to account for over 50% of music revenues, streaming now holds the top spot with 5% in 2014 and a significant increase since then.The concept of "glocalization" has also seen a significant increase. Artists from around the world are singing in their own languages but achieving massive success in other countries. For example, Colombian artists make more money from US streaming than from their entire domestic music industry. This highlights the global reach and impact of music.Reading the full report allows music enthusiasts to delve deeper into these fascinating trends and gain a comprehensive understanding of the music business. It is a testament to the evolving nature of the entertainment industry and the potential for growth in the music sector.