Global Music Report 2018 shows industry experiencing growth from subscription streaming, but Value Gap needs to be addressed for long term sustainability
IFPI today released its anticipated 2018 Global Music Report, providing a state-of-the-industry guide to the top global markets and highlighting industry-wide trends.
The Global Music Report 2018 is out now. For the definitive snapshot of the recording industry worldwide today head to https://t.co/5ymX70VLNM#GMR2018 pic.twitter.com/HJTzeT7S2E
— IFPI (@IFPI_org) April 24, 2018
While Canada dropped from the sixth to seventh largest music market in the world, the domestic music industry can be encouraged by marked growth in subscription audio streaming, which grew in trade value from USD $95.34 million in 2016 to USD $160.9 million in 2017. This trend has contributed to the first three consecutive years of growth following 15 years of revenue decline.
In Canada, ad-supported streaming declined slightly in 2017, representing USD $16.24 million in trade value, compared to USD $16.59 million in 2016. Video streams represented USD $23.32 million in trade value in 2017, rising from USD $21.56 million in 2016. The total trade value for all types of streaming rose from USD $133.5 million in 2016 to USD $200.4 million in 2017, a 50% increase. This is similar to the global trend where overall streaming revenues grew by 41.1%.
“I’m encouraged by the consecutive years of growth we’re witnessing. But as streaming continues its rise, it’s more important than ever that this business model supports the people making the music,” says Graham Henderson, President and CEO of Music Canada.
“There are still regulations and cross-subsidies in place, in Canada and around the world, intended to get tech companies off the ground,” says Henderson. “These companies, like Google and Facebook, are now some of the world’s wealthiest and have unprecedented control over content online. Music Canada produced a comprehensive report on the Value Gap in Canada, and more than 3,600 Canadian creators have signed the Focus On Creators letter to the Canadian government asking for legislative help. Any future legislation, including the current Copyright Act review, needs to keep the well-being and future of Canadian creators top of mind.”
Frances Moore, Chief Executive of IFPI, also pointed to addressing the Value Gap as a top priority.
“The industry is on a positive path of recovery but it’s very clear that the race is far from won.” Moore explained in an IFPI release. “Record companies are continuing in their efforts to put the industry back onto a stable path and, to that end, we are continuing our campaign to fix the value gap. This is not just essential for music to thrive in today’s global market, but to create the right – fair – environment for it to do so in the future.”
Music Canada’s 2017 report, The Value Gap: Its Origins, Impacts and a Made-In-Canada Approach, proposes a range of practical, forward-looking solutions tailored to Canada’s marketplace, institutions and legal framework.
